HC Deb 04 July 1911 vol 27 cc957-8
Mr. LANE-FOX

asked whether, in the case of a friendly society or branch being in a strong financial position and having accumulated funds, such society or branch may, under Clause 55 (c) of the Insurance Bill, relieve its members from the full payment of the contribution laid down in the Second Schedule of 4d. per male employed contributor and 3d. per female, so long as the society or branch by such part payment of members' contributions remains actuarily capable of paying the benefits required under the State insurance scheme, or are these contributions compulsory upon all employed contributors under any circumstances?

Mr. LLOYD GEORGE

Clause 55 (c) enables reserves to be used in the manner indicated, in the case of employed contributors, but the machinery of deduction from wages must necessarily be operative in all cases.

Viscount HELMSLEY

Do I gather from the right hon. Gentleman's answer that though the machinery of deduction must be used, the contribution might be less, not only of existing members, but also of members who come into the scheme?

Mr. LLOYD GEORGE

It is a question of the application of reserves. Under Clause 55, the 4d. may be refunded from the funds brought in by the member himself.

Viscount HELMSLEY

It will be a question of refunding?

Mr. LLOYD GEORGE

Yes, that is the suggestion.

Mr. LANE-FOX

asked whether existing members of friendly societies will be debarred from receiving sick or other benefits for the first six months after the Insurance Bill comes into operation unless they pay the contribution to their society in addition to that required under the Insurance Bill?

Mr. LLOYD GEORGE

The waiting period of six months before receiving sickness benefit applies to existing members of friendly societies. In the great majority of cases, however, societies will, if they so desire, be enabled by means of their accumulated funds to secure their existing benefits to the members for that period, without the payment of any extra contribution.

Mr. LANE-FOX

Will that not require a considerable alteration of existing rules in a great many cases?

Mr. LLOYD GEORGE

No, I do not think so. We are able to do it under Clause 55.