SOCIAL SECURITY

Grey River Argus, 7 June 1943, Page 2

SOCIAL SECURITY

INCREASES IN PAYMENTS Family Aid and Pensions ALLOWANCES FOR DISABLED DEPENDENTS. HOSPITAL BENEFITS ALSO RAISED. WELLINGTON, June 3. An increase in the family benefits under the Social Security Scheme was announced by Hon. W. Nash, when presenting the Financial Statement to the House of Representat ves. Mr. Nash gave a summary of the- Social Security Fund as follows: — Expenditure: Monetary benefits—Age, £8,100,000, V. dows £965,000, Orphans £22,000, Family £920,000, Invalids £1,030,000, Miners £BO,OOO, Unemployment £60,000, Sickness £420,000. Universal superannuation £820.000, Emergency £130,000, Maori War £Bo—total £12,547,080. Hospital, etc., benefits— Hospital £2,067,000, Medical £1,030,000, Maternity £539.000, Pharmaceutical £536,000, Supplementary £l6o,ooo—total £4,332.000. Administrative exoenses £524,000. —Grand total £17,403,080.

Revenue: ..Social security charge £11,600,000, Registration fee and miscellaneous £575,000, Transfer from Consolidated Fund £4,loo,ooo.—Total £16,275,000. “To ease the load of mothers where there are young children, it js proposed to increase the family benefit from the present rate of 6s to 7s 6d per child,’’ he said. “The cost for the balance of this financial year is estimated at £170,000. It is proposed to increase the present rate of age benefits of £1 10s, plus Is 6d -cost-of-Lving bonus, to a flat rate of £1- 12s 6d. This rate will also apply to .nvalids, minors, Maori war benefic’aries, and to war veterans. The rate for children will be maintained at 10s 6d for each child, and this rate will also apply to the sickness benefit. The cost of these increases for the balance of this financial year is estimated at £235.000. The urgent question of anomalies as between persons with incomes up to £2 10s, a week for a single person or £4 zs ;

6ci pei week tor a married, couple, v,ho otherwise would be qualified for age benefits ha s been further examined, and under the new proposals any single person whose social security charge and national security tax brings his tolal income below £l3O per annum will, if otherwise qualified, be eligible to receive by way of age benefit such amount of benefit as will bring his net income up to £130.. Similarly the incomes of a married couple may be brought up to £214 10s per annum net. To assist widows whose circumstances preclude them from obtaining adequate regular employment it is proposed to i increase the widow’s benefit from.: the present rate of £1 Is, including | bonus, to £1 5s a week where there are no children, and from £1 6s 3d to ; £1 10s a week where there are depe dent children. To the latter, of co s s added an allowance for nh : ’*iron thp nrpspnt. rate of 10s 6d

• eek for. each child. The cost, of th:~ additional benefit is estimated at £Bu j'jj this year. “All these increases will operate m July 1, next. “The circumstances of deserted \v e has been the concern of the Government for some time and inqu r.es are proceeding with a view io amending the present arrangements, and, if possible, to transfer the responsibility for taking Court proceedings from the wife to the State. Under these circumstances, if the proposals are carried out, the wires and children will qualify for certain benefits from the Social Security Fund whilst steps' will be taken to recover from the husband

the amounts paid. “It is proposed to amend the provisions of the Social Security Act to exemnt from the charge as income legacies of up to £5OO, and certain

other capital payments: also to ensure that no reduction takes place consequent on the transfer to an age benefit of a benefit payable to a blind beneficiarv, when such beneficiary reaches the age of sixty years. The cost of these alterations is negligible. “Since the present hospital benefit of 6s a dav per occupied bed was granted there has been a substantial increase in the cost of maintenance of patients. After analysing the po-

sitlon and considering various alternative p oposals, a decision has been re chod to ’ncrcase the hospital benefit from 6s to 9s a day. The cost to th Social Security Fund is estimated it £609.00? for this financial year, but '.here will automatically be a redo. t : o”. in hospital subsidies from the Consolidated Fund of half the amount payable to Hospital Boards. This has been adjusted by an incre 'se in the ' amount transferred fr > ’he Consolidated Fund to the Soe al Security Fund. Portion of the increased payment from the Social Security Fund will go to patients of private hospitals, and the net relief in hospital levies on local bodies will be about £250,000. Levies on local authorities for 1939-40 determined upon by Hospital Boards before the introduction of hospital benefits amounted to £1.094,000. For 194243 the amount was £1,318,000, an increase over the period of £224,000. The proposed increase to 9s a day should thus generally meet the increase since 1939-40.

“It is proposed that the disable- ■ ment pension will he increased from £2 to £3 per week, while the maximum economic pension will be £1 15s and rate for children 10s Gd per week a« from July 1, next. These ‘proposals will provide for a single disabled serviceman £4 15s a week, a married man without children £5 15s, with 10s Gd added for each dependent child. If there is a wife and two children, there will be an income of £6 16s per week, tax-free, going into the home. “It is also proposed to place the widow's of servicemen, in as nearly as possible the same position as they ■were in whilst their husbands were serving, and in order to effect this it is proposed to increase the pensions to war widows without children from £1 10s weekly to £2 weekly, and those of widows ‘with children from £2 weekly to £2 10s weekly. Also it is proposed to increase the economic pensions from 17s 3d for widows without children to £1 weekly. Widows w'ith children will receive an economic pension at the flat rale of £1 5s weekly. “In addition to the economic pension the widows with children will receive a payment of 10s 6d per week for each child up to the usual qualifying- age.” . The statement of income and expenditure for the Social Security Fund showed expenditure at £17,403,080, and revenue at £16,275.000. The fund was made up of £11.600,000 from the Social Security Charge, £575,000 registration fee and miscellaneous. and .a transfer’ of £4,100,000 from the Consolidated Fund. Age benefits constituted the largest payments, amounting to £8,100,000, while invalids’ pensions amounted to £1,030,000. 'Benefits to miners totalled £BO,OOO, and there was fin item of

£BO under the heading “Maori War.”

“It wifi be seen that the resources of both the Consolidated and the Social Security Funds will be sufficient to meet requirements without increased taxation,” said Mr Nash.