HC Deb 17 July 1911 vol 28 cc662-3
Major STANLEY

asked what proportion of the combined contributions, under the National Insurance Bill, of the workman, the employer, and the State will be placed to the credit of the friendly society which the workman may elect to join?

Mr. HOBHOUSE

Under the proposals of the Bill, the society will be credited with 5 4–9d. out of the 7d. contributed weekly by the workman and his employer; the balance of 1 5–9d. being required to provide the interest and sinking fund in respect of the reserves under Clause 40, which are also credited to the society. This 1 5–9d. is not withheld from the societies, but the actual distribution amongst them will depend upon the relative ages of members. The State contribution of two-ninths of the actual cost of benefits and expenses of administration will foe credited in full to the society as the liabilities arise. The amount credited to the society eventually will be more, in the case of an old member, and less, in the case of a young member, than the aggregate of the contributions, but will in no case be less than the contributions of the workman and his employer together.

Mr. PRETYMAN

Is the friendly society left the option of investing that money, or any of it?

Mr. HOBHOUSE

That does not arise out of the question at all. If the hon. Gentleman will put down a question on the point I will consider it and give a reply.

Mr. PRETYMAN

The question is how much is to be placed to the credit of the friendly society. I only ask whether the placing to credit of the friendly societies involves freedom to deal with the money?

Mr. HOBHOUSE

I have replied to the question how much will be credited. What the hon. Gentleman asks is another question.

Mr. PRETYMAN

When will it be credited?

Mr. HOBHOUSE

As the liabilities arise. That is what I have read out to the House.