HC Deb 04 March 1912 vol 35 cc20-1
Mr. CASSEL

asked whether any sum is guaranteed to a workman during illness under the National Insurance Act; and, if so, by what Section of the Act?

Mr. CHIOZZA MONEY

Before the hon. Gentleman answers that question may I ask whether it is not a fact that under the German National Insurance scheme—

Mr. SPEAKER

The hon. Member must give notice of that question.

Mr. MASTERMAN

It is a condition of approval of any society that it should guarantee to its members the ordinary benefits laid down in the Act until the first valuation. Section 54 (1) provides that sums required to meet expenditure properly incurred by an approved society for the purpose of benefits administered by them shall be paid out of the National Health Insurance Fund. I am advised that the effect of this and other provisions of the Act is that that fund is liable for the payment in full of the ordinary benefits set out in the Act until the date of the first valuation. After the first valuation a society (which must be completely self-governed), if it shows a deficiency, must reduce its benefits or increase its contributions, or, if it shows a surplus, it may reduce its contributions by repayments or give additional benefits.

Mr. CASSEL

In view of that answer I would like to ask whether the statement that workmen during illness will in future have a guaranteed sum to rely on made by the Chancellor of the Exchequer in his message to the Liberal candidate at South Manchester is not both inaccurate and misleading?

Mr. MASTERMAN

Until the date of the first valuation every workman will have that sum guaranteed to rely on.

Mr. CHIOZZA MONEY

Is it not the case that the contributions under the Act, are sufficient to give a business guarantee of the money benefits with a margin of 13 per cent, in the case of men, and 20 per cent, in the case of women?

Mr. MASTERMAN

I think that is so.

Mr. COOPER

Are we to understand that in the event of an approved society failing to maintain its guarantee does the State step in and take that guarantee over?

Mr. MASTERMAN

Until the first valuation the National Health Insurance Fund steps in and guarantees that to the members of an approved society.