COST OF PENSIONS

New Zealand Herald, Volume LXIX, Issue 21298, 27 September 1932, Page 8

COST OF PENSIONS

The Dominion's pension bill rose from £2,906,040 in 1930-31 to £3,088,536 in 1931-32, an increase of £182,487. The next returns will show the effect of the reductions made in the majority of pensions by the National Expenditure Adjustment Act over nine months of the financial year, but if new claims are made at last year's rate in the most important division, that of old age pensions, it will be a question whether the saving will be as great as was anticipated. In the year the number of old age pensions rose from 28,995 to 32,317, 'the total payment of £1,277,107 for 1931-32 representing an increase for the year of £118,319. In no year since these pensions were granted has the number of, pensioners risen to this extent. The new pensions granted for the last five years were 3638, 3614, 3506, 4640 and 5806. Those in force in the same years were 24,875, 26,110, 26,909, 28,995 and 32,317. It is clear that the depression has thrown an exceptional new burden on the State through old age pensions, and the probability is that the rate of increase will be maintained if not accelerated. Although there has been only a slight increase in the number of recipients of war pensions, the total expenditure has risen by £16,289. The records show that there was a gradual decline in the number of war pensioners until 1928, since when there has been a gradual increase. The chief cause probably lies in the rise in the number of economic pensions. Although they were granted long before the economic depression was expected, it is unquestionably the reason of many ex-soldiers claiming compensation in this form. Seeing that all cases have to bo dealt with by the Pensions Appeal Board there can be no legitimate protest except in so far as an economic pension may deprive a man of personal initiative. Family allowances are next in the

list to old age pensions in the matter of increase. The number has risen from 4617 to 7332 in a year, this figure being nearly double that of 1929. Here again the effect of unemployment is observed. The annual cost was £90,100 in 1931-32, against £63,608 the previous year. It is only in times of financial difficulty that the community examines the cost of its social services. The arresting fact of the moment is that it is paying in civil and war pensions and unemployment relief approximately £6,500,000 a year. Obviously the reductions made by the Act of last session were imperative.