UNIVERSAL FAMILY BENEFITS

Timaru Herald, Volume CLVIII, Issue 23323, 5 October 1945, Page 4

UNIVERSAL FAMILY BENEFITS

Payable Next April No Income Limit Other Pensions Increased (N.Z.P.A.) WELLINGTON, Oct. 4. Universal family benefits will be paid from April 1, 1946, it was announced in the House of Representatives to-day by the Hon. W. E. Parry, Minister of Social Security, when the Social Security Amendment Bill was introduced. The Minister of Finance, the Hon. W. Nash, said that this universal benefit together with alterations to be made in income tax exemptions, would improve the position of all 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 of benefit from October 1, and the Bill would give effect to the Government’s plan to implement the minimum family income.

Age Beneficiaries Mr Parry said the age benefits for a married couple, 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 under age the benefit had been increased from the present £2/3/- a week to £4 a week, again with an allowable income of £1 a week, providing the same maximum of £5 a week for the couple. 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. Widows With Dependants The benefit for widows with dependent children had been increased from the present 30/- to £2 a week with an allowable income of ‘3O/-, and in addition to this benefit 10/- would be available under the family benefit procedure for each child of a widow. The Commission might, in its discretion, when the 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 is increased from 25/- to £2 a week, with an allowable income of £l, bringing the total income and benefit to £3 a week. Tire rate for widows without children who otherwise qualify has been increased from 25/to 30/- a week, with an allowable income of 30/-, bringing the total income and benefit to £3 a week. Invalids Invalids’ benefits have been improved by providing for a benefit for a married male invalid of £4 a week for himself and his wife, with an allowable income of £1 or a total of £5 a week. When the wife is the invalid the benefit will be increased from the present 32/6 a week to £2, with an allowable income of £3 a week, or a total income and benefit amounting to £5 a week. The rate for single adult invalids pas been increased from 32/6 to £2 a week, with an allowable income of £l, making a total of £3 a week. Invalids under 20 will have their benefits increased from 22/6 to 30/-, with an allowable income of £l. making the total income and benefit £2/10/- a week. The Maori war benefit is increased from 32/6 to £2 a week where there is only one beneficiary. Miners’ benefits for a miner and his wife have been increased from the present £2/3/- to £4 a week. The benefit for a single miner has been raised from 32/6 to £2 a week. Miners widows' benefits have been increased from the present £1 to £l/10/- a week, with the right to receive, if she so desires, the ordinary widow’s benefit if such procedure is to her advantage. Sickness Sickness benefits have been raised from the present £l/15/- for a married couple to £4 with an allowable income of £l, or a limit of income and benefit of £5 a week. The sickness benefit for single persons has been raised from £1 to £2, again with the same income exemption of £1 or a maximum income and benefit of £3 a week. Persons under 20 years will have the sickness benefit increased from 10/6 to £l, with an allowable income f £l, or a total income and benefit of £2 a week. In all cases of sickness benefits the total income may be increased by a further £1 where the beneficiary is in receipt of a grant from a friendly or like society. Unemployment Unemployment benefits are raised from 35/- a week for married men to £4, with an allowable income from other than salary or wages of £l, making a total of £5 a week. The single persons’ unemployment benefit is increased from £1 to £2, with an allowable income other than salary or wages of a further £l, making the total income and benefit £3 a week. Unemployed persons under 20 years will draw £1 instead of 10/6, with an allowable income other than wages and salary up to £1 a week, making a total of £2 a week.

Family Benefit Family benefits have been amended by increasing the allowable earnings from the present rate of £5/10/- to £6/10/- a week, this amendment being operative from October 1 until March 31 next. This means that during this period married persons receiving £6/10/- a week or less will qualify for the family benefit of 10/- for 'each child under 16 years. From April 1, 1946, provision is being made to ensure the payment of 10/- a week for each child under 16 years irrespective of income.

Tire universal superannuation has been amended by providing for the extension of the benefit from the present limit of £B4/10/- to £lO4 a year. Except for unemployment benefits, where improvements have been affected, the propertv qualifications for social security benefits in general have not been altered. Tax Amendments 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 R. M. Algie (National, Remuera): The Lord hath given and the Lord hath taken away. Mr Nash: Blessed be the name of the Lord (Laughter). Mr Nash said at the same time the exemption from taxable income in respect of a wife would be increased from £5O to £lOO. Under this new provision anyone with an income of less than £2OOO a year would be better off. The exemption for the wife would be increased, and while the exemption for children under 16 would disappear, there would be a benefit of £26 payable in respect of such children. The Bill was formally read a first time.