PAYMENTS NEXT APRIL

Southland Times, Issue 25795, 5 October 1945, Page 3

PAYMENTS NEXT APRIL

Social Security Amendments

OTHER BENEFITS TO BE INCREASED

(P.A.) WELLINGTON, October 4. Universal family benefits will be paid from April 1, 1946, it was announced in the House of Representatives tonight by the Minister of Social Security (Mr Parry),' when the Social Security Amendment Bill was introduced. The Minister bf Finance (Mr Nash) said this universal benefit, together with alterations to be made in income tax exemptions, would improve the position of all the people with incomes below £2OOO a year. The Bill also provides for widespread increases in social security benefits. Mr Parry said the increases foreshadowed in the Budget had been included in the Bill. The main changes concerned increases in the basic rates benefit from October 1, and the Bill would give effect to the Government’s plan to implement the minimum family income. Mr Parry said that the age benefits for a married couple who were both eligible had been increased from the present £3/5/- a week to £4 a week, which with the allowable income of £1 a week would provide a total income of £5 a week. Where the wife was underage, the benefit had been increased from the present £2/3/- a week to £4 I a week, again with the allowable inI come of £1 a week, providing the same I maximum of £5 a week for the couple. I This provision was an extension of the Budget proposal where it was contemplated that £1 a week would be provided for an under age wife. For single age beneficiaries, the rate ■ had been increased from 32/6 a week | to £2 a week which, with the allowable income of £l, would bring the income to £3 a week. BENEFITS FOR WIDOWS 1 The benefit for widows with dependI ent children had been increased from I the present 30/- to £2 a week, with I the allowable income of 30/- a week, | and in addition to this benefit 10/- a j week would be available under the family benefit procedure for each child I of a widow. | The commission might in its discretion when circumstances warranted supplement the benefit for a widowed mother with children by a further £1 a week. In the case of widows who have had children, but now have none under 16 years, and who otherwise qualify, the benefit had been increased from 25/to £2 a week, with the allowable income of £1 a week bringing the total income and benefit to £3 a week. The rate for widows without children who otherwise qualify had been increased from 25/- to 30/- a week, with the allowable income of 30/-, bringing the total income and benefit to £3 a week. INVALIDITY PAYMENTS Invalids’ benefits had been improved by providing for a benefit for a married male invalid of £4 a week for himself j and wife, with the allowable income of £l, or a total of £5 a week. When the wife was the invalid, the benefit would be increased from the present 32/6 a week to £2, with the allowable income of £3 a week, or a total income and benefit amounting to £5 a week. The rate for single adult invalids had been increased from 32/6 to £2 a week, with the allowable income of £l, making a total of £3 a week. Invalids under 20 years would have their benefits increased from 22/6 to 30/-, with the allowable income of £l, making a total income and benefit of £2/10/- a week. The Maori war benefit was increased from 32/6 to £2 a week, there being only one beneficiary. Miners’ benefits for a miner and his wife had been increased from the present £2/3/- to £4 a week. The benefit for a single miner had been raised from 32/6 to £2 a week. The benefits for the widows of miners had been increased from the present £1 to £l/10/- a week, with the right to receive if she so desired, the ordinary widow’s benefit if such a procedure was to her advantage. SICKNESS BENEFITS Sickness benefits had been raised from the present £l/15/- for a married couple to £4 with the allowable income of £1 or a limit of income and benefit of £5 a week. The sickness benefit for single piersons had been raised from £1 to £2, again with the same income exemption of £l, or a maximum income and benefit of £3 a week. Persons under 20 years would have the sickness benefit increased from 10/6 to £l, with the allowable £1 income, or a total income and benefit of £2 a week. In all cases of sickness benefits, the total income might be increased by a further £1 where the beneficiary was in receipt of a grant from a friendly or like society. UNEMPLOYMENT Unemployment benefits were raised frotn 35/- a week for married men to £4, with the allowable income from other than salary or wages of £l, mak-

ing a total of £5 a week. Single persons’ unemployment benefit was increased from £1 to £2, with the allowable income other than salary or wages of a further £l, making a total income and benefit of £3 a week. Unemployed persons uiH<r 20 years would draw £1 instead of 10/6, with income not wages or salary up to £1 a week, making a total of £2 a week. Family benefits had amended by increasing the allowable earnings from the present rate of £5/10/- to £6/10/a week. This amendment would be operative from October 1 until March 31 next. This meant that during this period married persons receiving £6 10/- a week or less would qualify for the family benefit of 10/- for each child under 16 years. From April 1, 1946, provision was being made to ensure the payment of 10/- a week for each child under 16 years, irrespective of income. Universal superannuation had been amended by providing for the extension of the benefit from the present limit of £B4/10/- to £lO4 a year. Except for the unemployment benefits where improvements had been effected, property qualifications for social security benefits in general had not been altered. INCOME TAX CHANGES

Mr Nash said that as a complement to the introduction of the universal family benefit, from April 1, 1946, the Land and Income Tax Act would be amended, providing that exemptions for children under 16 would cease to operate from that date.

Mr Nash' said that at the same time the exemption from taxable income concerning a wife would be increased from £5O to £lOO. Under this new provision anyone with an income under £2OOO a year would be better off. The exemption for a wife would be increased, and while the exemption for children under 16 would disappear, there would be a benefit of £26 payable concerning such children. The Bill • was formally read a first time.