SOCIAL SECURITY

Nelson Evening Mail, Volume 79, 27 September 1944, Page 5

SOCIAL SECURITY

INSURANCE PLAN BRITISH GOVERNMENT POLICY Rugby, Sept. 25. A White Paper setting out the Government’s policy oil social insurance has been issued. The Government’s social insurance plan is part of a comprehensive economic policy for the years of peace and reconstruction. It has two sides, the first dealir • with the production of wealth to enable the nation as a. whole to earn the best possible living in the most efficient ways, and the second making provision for those in want through illness, unemployment, injury at work, or other chances and changes of life. The scheme provides Tor everybody, without exception. The population has been classified —not according to earn ings, but according to every way of life and their requirements—into six gfiroups, which differ in respect of the benefits they need and the contributions they must make to receive them. These six classes are: Class 1, employees; Class 2, others earning money; Class 3, housewives; Class 4. other persons of working age not earning money: Class 5. children; and Class 6, persons above working age who have retired. There will be a single weekly contribution for each contributor, paid by one stamp on an insurance card. This will cover all the benefits available in the contributor’s class of insurance. PAYMENT AND BENEFITS The weekly contribution under Class 1 will be for men of 18 or over, 3s 10d. and employers 3s Id. The contribution in Class 2 will be 4s 2d for men and 3s 6d for women and in Class 4 3s 4d for men and 2s 8d for women. The benefits available to each class of contributor are: Classes 1,2 and 4. a maternity grant, maternity benefit, or attendance allowance, retirement pensions, widow’s pension, guardian’s benefit. widow’s pension, and destitution grant. In addition, in Class 1 there are sickness benefits and invalidity benefits, unemployed benefits, and industrial injury benefits. In Class 2 there will be a sickness benefit after the first four weeks of sickness, and invalidity benefit. Family allowances and health services will be available to all. Regarding family allowances, there will be services in kind. School meals, and a milk service will be free. There will also be a cash allowance of 5s a week for each child in the family except the first, paid by the State from the proceeds of the taxes. The standard rates of unemployment and sickness benefit will be 40s for a married couple. 24s for a single man or woman. I and 5s for the eldest child. Sickness benefit will last for three years, and’ then invalidity benefit of 35s and 20s will be substituted. UNEMPLOYMENT BENEFIT Unemployment benefit lasts for 30 weeks —a little longer for those with a good employment record. Sixteen shil- ; lings will be paid in addition to the single rate of unemployment, and sickness benefit to anyone who maintains an invalid person’s widowed mother, adult sister, or daughter, or to.a housekeeper looking after dependent chil- . dren. The standard retirement pension will be 35s for a man and his wife, 20s for a single person, and will be payable , when the man retires at 65, even if the wife is under 60, unless she is working. Those who go on working do not draw a pension, but when they retire their pension is increased by 2s for the man and his wife and Is for a single person for every year worked after the retiring age. ; Besides the maternity grants, arrangements have also been made for benefits for married women insured in their own right and for widows and , children. [ The Government estimates that in . 1945 there will 'be 340.000 pensioners and 21,000 000 contributors, and in 1965 530,000 pensioners and 21,000,000 contributors. t , STATE INCOME AND OUTGOINGS There will be a Ministry of Social Insurance and Family Allowances. The , estimated income of the new scheme • in 1945 would be £283.00.000 from con- ■ tributions and £352,000.000 from the ■ Exchequer and local rates. The esti- ■ mated income of the present schemes i in 1945 will be £136,000,000 in contributions and £276.000,000 from local • rates. The estimated expenditure of ; the new scheme in 1945 will be £650,- , 000,000. The estimated expenditure on the present schemes in 1945 will be j £411,000.090. The White Paper expresses gratitude to Sir William Beveridge for his orig- • mal plan, and states that the main tri--3 bute to him is the embodiment of so ■ much of his plan in the proposals set 5 out above. I Lord Woolton, speaking of the new . scheme, said that the proposals for , social insurance are indications of the Government’s determination to wage war against poverty in time of peace —B.d.W.