SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1943

Appendix to the Journals of the House of Representatives, 1943 Session I, H-09

H.— 9

1943 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1943

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, 17th May, 1943. I have the honour to submit for the information of Parliament the fourth annual report of the Social Security Department, for the period Ist April, 1942, to 31st March, 1943. NEW LEGISLATION The following legislation became operative during the year : — (a) The Social Security and Pensions Emergency Regulations 1942, by which age, widows', orphans', invalids', miners', and Maori War benefits were increased by a bonus of 5 per cent, on the maximum rate from Ist May, 1942. Recipients of family benefits were granted a bonus of 2s. a week for each child and the allowable income was raised from £5 to £5 ss. The personal earnings exemption of totally blind applicants for invalids' benefit was increased from £143 to £156 a year: (b) The Social Security and Pensions Emergency Regulations 1942, Amendment No. 1, authorized the payment of an additional sum not exceeding £26 a year to any age beneficiary in respect of pre-enlistment dependency on a son whose death is due to his employment as a member of the forces : (c) The Social Security (Employment of Age Beneficiaries) Emergency Regulations 1942 enabled recipients of age benefits to surrender their benefits on taking up full-time employment and entitled them to restoration of benefit in full when such employment ceased : (d) The War Injuries to Civilians Emergency Regulations 1942 made provision for pensions to civilians and their dependants in respect of death or disablement which is directly caused by enemy action or in the course of activities undertaken in combating the enemy or to repel an imagined attack by the enemy. BENEFITS UNEMPLOYMENT BENEFITS The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1942, and 31st March, 1943, respectively, and illustrate a further noticeable 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, 1942, and 31st March, 1913, respectively :—

1041-42. 1942-43. Males. | Females. Totals. Males. Females. Totals. Persons granted benefit .. .. .. 8,999 630 9,629 2,052 317 2 369 Number of applications declined .. .. 5,122 790 5,912 558 586 1 144 Number of persons whose applications were 344- 1,124 1,468 186 351 ' 537 declined, but who were granted emergency benefits on grounds of hardship _ Totals •• •• •• 14,465 2,544- 17,009 2,796 1,254 4,050

1941-42. 1942-43. Males. Females. Totals. Males. Females. Totals. Persons granted benefit .. .. .. 17,862 7,294 25,156 18,936 7,807 26 743 Number of applications declined .. .. 1,938 918 2,856 1,798 '805 2 603 Number of persons whose applications were 113 242 355 136 278 '414 declined, but who were granted emergency benefits on grounds of hardship Totals •• 19,913 8,454 28,367 20,870 8,890 29,760

H.—9

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 any 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. Full and sympathetic use is made of this section, and emergency benefits granted during the year totalled 1,488. 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 op the Social Security Fund for the Year ended 31st March, 1943 Receipts Payments £ Monetary benefits — £ £ Balance .. .. .. .. .. 3,023,835 Universal superannuation .. .. 603,124 £ Age .. .. .. 7,783,084 Social security registration fees .. 540,921 Widows .. .. .. 866,597 ■Social security charge on wages and other Orphans .. .. .. .. 20, 628 income .. .. .. .. 11,624,046 Family .. .. .. .. 790,719 Penalties, fines, interest, and miscellaneous 48,673 Invalids .. .. .. .. 1,036,373 12,213,640 Miners .. .. .. .. 80,100 Grants from Consolidated Fund, vote " Social Maori War .. .. .. 190 Security" (Social Security Act, 1938, section 105 (c)) 3,800,000 Unemployment .. .. .. 49,639 Sickness .. .. .. .. 362,088 Emergency .. .. .. 118,923 11,711,465 Medical benefits, &c.— Medical benefits .. .. .. 1,016,032 Hospital benefits .. .. .. 1,539,282 Maternity benefits .. .. .. 505,219 Pharmaceutical benefits .. .. 563,247 Supplementary benefits .. .. 97,399 — — 3,721,179 Administration expenses —• Land and Income Tax Department .. 150,000 Health Department .. .. 62,509 Social Security Department.. .. 305,521 518,030 Balance .. .. .. .. .. 3,086,801 £19,037,475 £19,037,475 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 Secretary for War Pensions. NEW LEGISLATION The following legislation became operative during the year : — (а) The Social Security and Pensions Emergency Regulations 1942, which made provision for a bonus of 15 per cent, on maximum rates to be paid in respect of all economic pensions from Ist May, 1942. War veterans' allowances were increased by the addition of a bonus of 5 per cent, on the maximum rates : (б) The Social Security and Pensions Emergency Regulations 1942, Amendment No. 1, which enables the War Pensions Board to grant pensions to widows of ex-servicemen in receipt of permanent pensions for total disablement where death is not attributable to military service. The Board may also continue for twenty-eight days after the death of an ex-serviceman any pension or allowance in respect of his disablement granted to any dependant and current at his death. The maximum rates for war veterans' allowances are now £78 a year for the veteran, £52 a year for his wife, and £26 a year for each child, plus a bonus of 5 per cent., but so that the total allowance payable in respect of the veteran, his wife and children does not exceed £234 a year, plus bonus of 5 per cent. The War Pensions Board may now complete the investigation of the claim of any veteran who has died before his application was finalized and may in its discretion authorize a grant on behalf of the widow and/or children.

Dissections of War Pensions current at 31st March, 1943

2

War Pensions Act, 1915. War Pension Extension Act, TotaIs _ Class of Pension. Nnmber Number Anmla , Nu ™ f ber Number Annua , Number Number Annua] Pensioners Children. Value. 8l p®"j a Children. Value. Pensioners Children. Value. £ £ £ Ex-members of forces— Permanent .. .. 12,117 9 838,806 77 .. 8,929 12,194 9 847,735 Temporary .. .. 3,341 .. 255,97] 5,331 1 479,761 8,672 1 735,732 Dependants of disabled ex- 2,782 3,049 209,701 828 776 58,533 3,610 3,825 268,234 members Widows .. .. .. 2,002 526 226,344 1,083 817 148,662 3,085 1,343 375,006 Other dependants of deceased 1,919 71 71,955 347 126 18,755 2,266 197 90,710 members ~ ~ ~ Totals .. .. 22,161 3,655 1,602,777 7,666 1,720 714,640 29,827 5,375 2,317,417

H.—9

Economic Pensions payable at 31st March, 1943, in Supplementation of Statutory War Pensions

Pensions payable outside New Zealand at 31st March, 1943

Summary of War Pension Payments

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

3

War Pensions Act, 1915. War P ™J^^ fcension Total. Class of Pension. Number. Annual Value. Number. Number. Annual Value. £ £ £ Ex-members with permanent 2,397 214,415 40 3,588 2,437 218,003 pensions Ex-members with temporary 1,100 94,834 1,931 166,628 3,031 261,462 pensions Widows .. .. .. 1,024 44,269 491 18,492 1,515 62,761 Widowed mothers .. .. 92 4,987 115 6,137 207 11,124 Totals .. .. 4,613 358,505 2,577 194,845 7,190 553,350

Class of Pension. Act, Total. Act, 191 o. 1U40 Ex-members of forces — Permanent .. .. .. .. .. 835 1 836 Temporary .. .. .. .. .. 40 21 61 Wives and parents of ex-members: Temporary .. 102 7 109 Dependants of deceased members — Widows .. .. .. .. .. 213 25 238 Other dependants .. .. .. .. 294 28 322 Totals .. .. .. .. .. 1,484 82 1,566

Payments made in Total. London. Australia. Canada. Comitates New Zealand - £ £ £ £ £ £ £ Total payments to 31st 1,351,199 881,415 51,185 10,184 14,927 32,349,289 34,658,199 March, 1942 Payments in 1942-43.. 12,464 58,102 3,178 865 460 1,980,455 *2,055,524 Total payments to 31st 1,363,663 939,517 54,363 11,049 15,387 34,329,744 36,713,723 March, 1943 * Includes £479,477 in respect of war pensions in connection with the present war and £1,985 to members of the Emergency Reserve Corps.

War War Pensions W " Pensions War Veterans' Act, WW. (Mercantile AUowances Totals. 1940. Appeals outstanding at 31st March, 1942 31 96 .. 1 128 Appeals lodged 1942-43 .. .. 200 1,138 1 2 1,341 Total to be dealt with .. 231 1,234 1 3 1,469 Appeals upheld, 1942-43 .. .. 71 346 1 2 420 Appeals dismissed, 1942-43 .. .. 105 468 .. .. 573 Appeals withdrawn and struck out 1942-43 3 70 .. 1 74 Total disposed of 1942-43 .. 179 884 1 3 1,067 Appeals outstanding at 31st March, 1943 52 350 .. .. 402 Percentage upheld .. .. 39-6 39-1 100 66-6 39-3

H.—9

Medical treatment of war pensioners during 1942-43 cost £30,004. (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 £4,158.

Benefits and Pensions in Force and Total Payments

COST OF ADMINISTRATION Excluding expenditure of £2,91.8 on capital items, administration costs for the year amounted, to £351,219, including £44,769 in respect of the administration of war pensions and allowances. Thisrepresents 2-43 per cent, on total payments. GENERAL Under arrangements made by the Rehabilitation Board, the Secretary for War Pensions was authorized from the Ist March, 1943, to pay rehabilitation allowances to demobilized servicemen and women for periods up to thirteen weeks following the cessation of Service pay for the purpose of assisting in their reabsorption into civil life. To meet the claims of servicemen and women whose Service pay had ceased, 2,319 cases were reviewed, and of these 849 individual grants were awarded. The large majority of the others had already been successful in obtaining employment and were not in need of assistance. As at the 31st March, 1943, 763 allowances were current representing a weekly value of £2,837, while for the period Ist to the 31st March, 1943, payments totalling £7,861 were made. The number of officers absent on war service on the 31st, March, 1943, was 511, and of these 17 had made the supreme sacrifice. In spite of the large number of officers engaged on military service, the Department, with the help of temporary female assistance, has been able to render the community very efficient service. In submitting this report I would again like to emphasize the splendid service rendered by the staff and express my appreciation of the manner in which a difficult year's work has been brought to a successful conclusion. H. Digby-Smith, Chairman, Social Security Commission.

Approximate Cost, of Paper.—Preparation, not given ; printing (572 copies), £8.

By Authority: E. V. Paul, Government Printer, Wellington.—l 943. Price 3d.]

4

As at 31st March, 1942. As at 31st March, 1943. Number in AnnU al Value Total Payments Number in Annual value Total PaymentsForce. An uai value - 1941-42. Force. Annual value. 1942-43. £ £ £ £ Universal superannuation .. .. 41,021 512,762 445,686 44,448 666,720 603,124 Age .. .. .. .. 99,152 7,337,248 7,190,094 99,671 7,903,910 7,783,084 Widows .. .. .. .. 10,765 849,363 844,928 10,589 864,062 866,597 Orphans .. .. .. .. 372 18,909 18,275 395 21,033 20,628 Family .. .. .. .. 18,316 631,902 539,183 14,190 764,841 790,719 Invalids .. .. .. .. 12,107 1,022,611 1,011,375 11,938 1,029,055 1,036,373 Miners .. .. .. .. 888 80,403 83,258 841 76,362 80,100 Maori War .. .. .. 4 312 440 2 164 190 Unemployment .. .. .. 841 .. 138,528 373 .. 49,639 Sickness .. .. .. .. 3,672 .. 304,154 3,699 .. 362,088 Emergency .. .. .. 2,170 .. 126,718 1,821 .. 124,268 War (War Pensions Act, 1915) .. 22,894 1,619,206 1,617,481 22,161 1,602,777 1,574,062 War (War Pensions Extension Act,1940) 3,297 313,399 178,135 7,666 714,640 479,477 War Veterans' allowances .. .. 1,888 216,864 210,575 1,807 222,173 224,942 Boer War (Defence Act, 1909) .. 45 1,478 1,581 42 1,453 1,504 Mercantile Marine pensions .. .. 3 266 617 6 498 350 Emergency Reserve Corps .. 2 127 1,062 19 1,477 1,985 Sundry pensions and annuities .. 76 9,377 9,329 139 15,069 13,581 Civil Service Act, 1908 .. .. 6 2,337 2,354 5 1,903 2,176 War and other pensions paid on behalf 3,037 210,455 184,039 3,224 242,718 352,104 of the Governments of Great Britain, Australia, India, Canada, South Africa, and Crown colonies ; Totals .. .. .. 220,556 12,827,019 12,908,412 223,036 14,128,855 14,366,991