§ Paragraph 6 (1)—Parents' Flat Bate Pension (5s.),—As recommended, the flat-rate pension will be retained, but without increase.
§ Paragraph 10—Parents' Pre-War Dependence and Special Pensions.—As recommended, the maximum limit of parents' pre-War dependence, and special pensions will be raised from 18s. (i.e., 15s. plus 20 per cent. bonus) to 20s., but the Government have not been able to accept the recommendation that lower amounts should be raised 33 per cent. in proportion, i.e., 13 per cent. beyond the 20 per cent. addition which has now been made a substantive part of the pension. Account has had to be taken of the fact that the support given by the son before the War, which forms the basis of the dependence pension, was extremely insecure, and, apart from other eventualities, such as loss of employment, would almost certainly have been withdrawn or; materially reduced on the son's marriage. To have exchanged this hazardous support for a State pension is considered to be more than sufficient compensation for; the depreciation of the purchasing power of money in excess of the 20 per cent. for which provision is already made.
§ The pensions, therefore, will not be generally raised, but in addition to the 597 increase of the maximum limit it is proposed to meet the Select Committee with regard to such special cases as are instanced in (II), (IV) and (V) of their recommendations under this paragraph. (The recommendation at (III) states the existing practice.) Already the Special Grants Committee can give some effect to these recommendations, and by an amendment of their existing Regulations they will be enabled to deal with all cases of special hardship on the basis suggested by the Select Committee, namely, "reasonable expectation of what the son would have contributed had he lived." The precise wording of the amended Regulation is at present under consideration.
§ With regard to the Select Committee's recommendation that "in the case of two parents, provided need is proved, the limit should be raised to 40s.," the Special Grants Committee can already supplement parents' pensions, limited by the Warrant to 20s., by a further 10s., which will now be increased to 15s.
§ General Review of Parents' Pensions.—This proposal has been examined and is found to be impracticable.
§ Paragraph II (B)—Pensions of other dependants.—The Select Committee recommend raising the maximum to 18s. 4d. Following the principle on which the rate was originally fixed, it is proposed to raise the maximum to 20s., that being the amount of the minimum widows' pension.
§ Paragraph II (B)—Adoption of Sliding Scale.—The Committee recommend for dependants' pensions the adoption of the Sliding Scale introduced into the Warrant as the result of their First Re-port, "subject to the present rates under the 'Hodge' Warrant being the minimum." The Sliding Scale will be adopted, but it should be observed that the minimum must be the "Hodge" Warrant rates plus the 20 per cent. bonus, where this is now payable. The bonus is made a substantive part of the pension in the new Warrant, and no provision is made for its ultimate withdrawal.