§ Lord CHARLES BERESFORD
asked whether it is to be understood that the representatives of the friendly societies agree to the withholding of sick benefit for the first three days of sickness; whether the Chancellor of the Exchequer is aware that, taking the Ancient Order of Foresters as an example, they would save on a basis of 2,000 members £761 by not paying the first three days' sick pay, but that by giving the suggested bonus it would cost £806, showing that the bonus would be more expensive to the society by £45 than giving sick benefit from the first day of sickness; and whether this proposal is at variance with the rules of friendly societies which give sick benefit from the first day of sickness?
Mr. McKINNON WOOD
The Noble Lord is right in thinking that the decision not to pay sickness benefit for the first three days of sickness is at variance with the existing practice of friendly societies, but the representatives of those societies agreed to recommend their members to acquiesce in the decision, provided that the money so saved should be used in giving other benefits. Those benefits will be actuarialy as nearly as practicable equivalent to payment during the first three days, so that no question of comparative expense can arise. The objections to paying sickness benefit for the first three days are summarised on page 3 of the White Paper, Cd. 5930.