SOCIAL SECURITY DEPARTMENT. REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1942.

Appendix to the Journals of the House of Representatives, 1942 Session I, H-09

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1942. NEW ZEALAND.

SOCIAL SECURITY DEPARTMENT. REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1942.

Presented to both Houses of the General Assembly -pursuant to the Provisions of the Social Security Act, 1938.

In so far as the Social Security Legislation is concerned, this report deals with Part II of the Act only. Reports on the operation of Part 111 and Part IV of the Act will be submitted by the Health and Land and Income Tax Departments respectively.

REPORT.

To the Hon. the Minister of Social Security. Sir, — Social Security Department, Wellington, 24th June, 1942. I have the honour to submit for the information of Parliament the third annual report of the Social Security Department, for the period Ist April, 1941, to 31st March, 1942. NEW LEGISLATION. During the year the Act was amended (from Ist September, 1941) by provisions of the Finance Act, 1941, affecting monetary benefits as follows : — (a) The additional amount which could be granted to an age beneficiary in respect of his wife not qualified for benefit in her own right was increased from £13 to £26 per annum, and the limit of income and benefit (exclusive of benefit in respect of children) was increased from £156 to £182 per annum : (b) The additional amount payable in respect of, any child of an age beneficiary was increased from £13 to £26 per annum, subject to a limitation of £234 per annum on the total benefit: (c) The family-benefit provisions were extended to cover all children of a family instead of only the second and subsequent children in each case : (d) The maximum invalids' benefit was increased from £208 to £234 per annum : (e) The amount payable by way of sickness benefit in respect of each child of an applicant for such benefit was increased from ss. to 10s. a week. A provision affecting age benefits only was included in section 8 of the Finance Act (No. 2), 1941, by which the Commission is empowered, in computing the income of any person whose income is required to be taken into account for the purposes of an application for such benefit, to disregard, to such extent as might be necessary for the adjustment of any anomaly, amounts paid or payable by way of social security charge or national security tax. This provision has applied with respect to age benefits granted or renewed since Ist November, 1941.

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BENEFITS. UNEMPLOYMENT BENEFITS. The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1941, and 31st March, 1942, respectively, and illustrate the decline in unemployment in the Dominion : —

SICKNESS BENEFITS. The following figures show the number of applications for sickness benefits dealt with during the years ended 31st March, 1941, and 31st March, 1942, respectively :—

EMERGENCY BENEFITS. Under the provisions of section 58 of the Social Security Act, 1938, the Social Security Commission may, in. its discretion, grant a special benefit on grounds of hardship to any person who is not qualified for aiiy other benefit under the Act, but who, by reason of age .or of physical or mental disability, or for any other reason, is unable to earn a sufficient livelihood for himself and his dependants. Two thousand and ten emergency benefits were granted during the year. OTHER MONETARY BENEFITS. Details with regard to other monetary benefits under the Act are included in the table on page 4. FINANCE. Statement showing the Receipts and Payments of the Social Security Fund foe the Year ended 31st March, 1942. Receipts. Payments. £ Monetary benefits — £ £ Balance .. .. •• •• •• 1,867,440 Universal superannuation .. .. 445,686 £ Age .. .. .. .. 7,190,694 Social security registration fees .. 605,222 Widows .. .. .. .. 844,928 Social security charge on wages and other Orphans .. .. .. .. 18,275 income .. .. •• •• 10,432,314 Family .. .. .. .. 539,183 Penalties,fines,interest, and miscellaneous 50,146 Invalids .. .. .. .. 1,011,375 • 11,087,682 Miners .. .. .. .. 83,258 Grants from Consolidated Fund, vote " Social Maori War .. .. .. 440 Security" (Social Security Act, 1938, section 105 (c)) 3,600,000 Unemployment .. .. .. 138,528 Sickness .. .. .. .. 304,154 Emergency .. .. .. 124,716 10,701,237 Medical benefits, &c.— Medical benefits .. .. .. 205,673 Hospital benefits .. .. .. 1,372,405 Maternity benefits .. .. .. 549,850 Pharmaceutical benefits .. .. 279,698 Supplementary benefits .. .. 27,962 2,435,588 Administration expenses' — Land and Income Tax Department—.. 90,000 Health Department .. .. 35,266 Social Security Department .. .. 269,196 394,462 13,531,287 Balance .. .. .. .. .. 3,023,835 £16,555,122 £16,555,122

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1910-41. 1941-42. Males. | Females. | Totals. Males, j Females. Totals. Persons granted benefit .. .. .. 21,720 1,191 22,911 8,999 630 9,629 Number of applications declined .. .. 10,199 1,010 11,209 5,122 790 5,912 Number of persons whose applications were 557 958 1,515 344 1,124 1,468 declined, but who were granted emergency benefits on grounds of hardship Totals .. .. .. 32,476 3,159 35,635 14,465 2,544 17,009

1940-41. 1941-12. . Males. | Females. Totals. Males. Females. Totals. Persons granted benefit 17,189 6,236 23,425 17,862 7,294 25,156 Number of applications declined .. .. 1,997 958 2,955 1,938 918 2,856 Number of persons whose applications were 186 309 495 113 242 355 declined, but who were granted emergency benefits on grounds of hardship Totals .. .. 19,372 7,503 26,875 19,913 8,454 28,367

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WAR PENSIONS. The general administration of the various enactments providing for pensions and allowances in respect of service in the present and former wars and the carrying-out of decisions of the War Pensions Board and the War Pensions Appeal Board are functions of the Social Security Department. LEGISLATION. Section 17 of the Finance Act, 1941 (effective from Ist September, 1941), amended the war veterans' allowances legislation as follows : — (a) The rate of allowance payable in respect of each child of a veteran was increased from £13 to £26 per annum : (b) The maximum basic allowance payable in respect of a veteran, his wife and children, was increased from £156 to £208 per annum : (ci) The limit up to which the basic allowance could be supplemented on economic grounds was increased from £182 to £234 per annum.

Dissections of War Pensions current at 31st March, 1942.

Economic Pensions payable at 31st March, 1942, in Supplementation of Statutory War Pensions.

Pensions payable outside New Zealand at 31st March, 1942.

Summary of War Pension Payments.

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War Pensions Act, 1915. War Extension Act, , fotals _ Number Number Annual Nu $ ber Number _4 nnua ] Number Number AmmaI Pensioners Children. Value ' doners. chMren - ValU6 ' Pensioners Children. Va,ue ' Ex-members of forces — £ £ J £ Permanent .. .. 12,171 8 806,836 24 .. 1,277 12,195 8j 808,113 Temporary .. .. 3,433 1 267,688 2,209 .. 202,196 5,642 4 I 469,884 Dependants of disabled ex- 2,932 3,656 237,711 339 379 29,477 3,271 4,035 ! 267,188 members Widows .. .. .. 1,953 599 217,419 545 440 73,168 2,498 1,039 290,587 Other dependants of deceased 2,405 97 89,552 180 76 7,281 2,585 173 96,833 members : — Totals .. 22,894 4,364 1,619,206 3,297 895 313,399 26,191 5,259 1,932,605

itt r> . a i inir War Pensions Extension m , , War Pensions Act, 1915. total. Class of Pension. Number. Annual Value. Number. Number. Annual Value. £ £ £ Ex-members with permanent '2,641 196,303 4 312 2,645 196,615 pensions Ex-members with temporary 1,068 80,180 726 56,135 1,794 136,315 pensions Widows .. .. .. 724 27,060 256 8,388 980 35,448 Widowed mothers .. .. 98 4,530 57 2,690 155 7,220 Totals .. .. 4,531 308,073 1,043 67,525 5,574 375,598

W P n • ar P ens i° ns Class of Pension. f r , ? nS Extension Act, Total. Act, 1915. 104O Ex-members of forces — Permanent .. • • • ■ • ■ • • 849 .. 849 Temporary .. .. .. .. . . 54 13 67 Wives and parents of ex-members: Temporary . . 110 1 111 Dependants of deceased members— Widows .. . • •. . • ■ ■ 214 12 226 Other dependants .. .. .. .. 322 8 330 Totals .. .. .. .. .. 1,549 JS4 1,583

Payments made in Total. London. Australia. Canada. Jjjyga CmmtrS 6W Zealand. £ £ £ £ £ £ £ Total payments to 31st 1,304,914 849,676 47,433 9,700 14,086 30,635,712 32,861,521 March, 1941 Payments in 1941-42 .. 46,285 31,739 3,752 484 841 1,713,577 *1,796,678 Total payments to 31st 1,351,199 881,415 ! 51,185 10,184 14,927 32,349,289 34,658,199 March, 1942 * Includes £178,135 in respect of war pensions in connection with the present war and £1,062 to members of the Emergency Reserve Corps.

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War Pensions Appeal Board. The following table summarizes the operations of the War Pensions Appeal Board during the year with respect to appeals under war pension and related legislation : —

Medical treatment of war pensioners during 1941-42 cost £26,214. (This item includes the cost of treatment of pensioners resident in overseas countries.) Railway concessions to ex-members of the forces pensioned for total and permanent disablement and those with locomotor disabilities on permanent pensions in excess of 50 per cent, cost £4,003.

Benefits and Pensions in Force and Total Payments.

COST OF ADMINISTRATION. Excluding expenditure of £2,556 on capital items, administration costs for the year amounted to £326,195, including £36,140 in respect of the administration of war pensions and allowances. This represents 2-52 per cent, on total payments. GENERAL. Under arrangements made with the High Commissioner for the Western Pacific the facilities of the Social Security Department were made available for the payment of allowances to evacuees from Tonga, and as at 31st March, 1942, a total of twenty-five persons were being paid allowances on behalf of the Tongan Government. The number of officers absent on war service on 31st March, 1942, was 449, 9 of whom have made the supreme sacrifice. The heavy drain on trained personnel owing to war conditions has proved a severe handicap, but the ready response at all times of the remaining members of the staff, together with the temporary assistance engaged, has enabled the Department to function efficiently^. In submitting this report I would like to place on record my appreciation of the staff's wholehearted co-operation in bringing to a successful conclusion a very strenuous and trying year's work. H. Digby-Smith, Chairman, Social Security Commission. Approximate Cost of Paper.—Preparation, not given ; printing (517 copies), £8 10s.

By Authority: E. V. Paul, Government Printer, Wellington. —1942.

Price. 3d.]

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War 1X7 T> ■ War P ens i° ns War Veterans' W « P r M | Extension Allowances Totals. I A * 1M0 ' ES& 1940. I i I Appeals outstanding at 31st March, 1941 55 21 .. I 77 Appeals lodged 1941-42 .. .. 217 357 3 5 582 Total to be dealt with .. 272 378 3 6 659 Appeals upheld, 1941-42 .. .. 92 111 2 2 207 Appeals dismissed, 1941-42 .. .. 127 146 1 3 277 Appeals withdrawn and struck out .. 22 25 .. . 47 Total disposed of, 1941-42 .. 241 282 3 5 531 Appeals outstanding at 31st March, 1942 31 96 . . 1 128 Percentage upheld . . . . 38-1 39-3 66-6 40-0 38-9 i

As at 31st March, 1941. As at 31st March, 1942, Number in v ,i,„. Total Payments Number in | Aul VaIu . Total Payments Force. Annual Value. 1940.41.. Force, j Annual value. 1941.42. £ £ £ £ Universal superannuation .. .. 36,602 366,020 240,336 41,021 512,762 445,686 4„ e . .. .. 97,606 7,127,821 7,101,346 99,152 7,337,248 7,190,694 Widows •• •• 10,569 843,516 836,368 10,765 849,363 844,928 Orphans .. .. 350 17,888 17,713 372 18,909 18,275 Family " 16,626 485,337 411,811 I 18,316 631,902 539,183 Invalids •• 11,936 998,792 999,648 ' 12,107 1,022,611 1,011,375 Miners !.. • • •• 931 85,394 88,656 888 80,403 83,258 Maori War .. .•• 7 546 744 4 312 • 440 Unemployment .. .. 1,906 .. 299,161 841 .. 138,528 Sickness 3,452 .. 279,581 3,672 .. 304,154 Emergency .. •• •• 2,034 .. 130,096 2,170 .. 126,718 War (War Pensions Act, 1915) 1 23,458 1,653,534 1,649,076 22,894 1,619,206 1,617,481 War (War Pensions Extension Act, 1940) 551 61,644 14,376 3,297 313,399 178,135 War Veterans'allowances .. .. 2,033 209,445 211,325 1,888 216,864 210,5/5 Boer War (Defence Act, 1909) .. 47 1,777 > 1,858 45 1,478 1,581 Mercantile Marine pensions .. .. 9 1,128 j 916 3 266 617 Emergency Reserve Corps .. .. 1 104 3 2 127 1 > 062 Sundry pensions and annuities .. 83 9,832 10,152 76 9,377 9,329 Civil Service Act, 1908 .. .. 6 2.337 2,647 6 2,337 2,354 War and other pensions.paid on behalf 2,721 175,900 214,795 3,037 210,455 184,039 of the Governments of Great Britain, Australia, India, Canada, South Africa, and Crown colonies , ~~ Totals .. .. ■ 210,928 12,041,015Hl2,510,008 I 220,556 12,827,019 12,908,412