WORKMEN'S COMPENSATION (SUP- PLEMENTARY ALLOWANCES) (No. 2) BILL. (Hansard, 6 August 1940)

§ THE PARLIAMENTARY UNDERSECRETARY OF STATE FOR INDIA AND BURMA (THE DUKE OF DEVONSHIRE)
My Lords, I beg to move that the House do resolve itself into Committee on this Bill.

LORD STRABOLGI
My Lords, may I ask my noble friend the Duke of Devonshire if he would be good enough to make a statement with regard to the treatment of partially-disabled workmen? I understood on the Second Reading debate that he would say something in Committee.

§ THE DUKE OF DEVONSHIRE
My Lords, the noble Lord opposite raised a question on Second Reading about workmen who are partially disabled and your Lordships may remember that there was another question, which was referred to as a "loose end," on which final agreement had not been reached. Perhaps your Lordships will permit me to make a statement on both those questions at the same time. Agreement had not been fully reached at the time of the Second Reading debate on the question of allowances under this Bill to children between the ages of fourteen and sixteen. It had been urged that allowances should be made for children up to sixteen. That proposal was abandoned, but a further proposal was made that certain categories of children should be eligible for these allowances. As I undertook at the time of the Second Reading debate, that question has been further discussed between the various interests concerned. While the 106 Government fully appreciate the point of view that children continuing to receive education should be eligible for allowances, they see very great objections. The proposals in the Bill as it stands were only arrived at after prolonged discussion and they embody an agreement between representatives of the General Council of the Trades Union Congress and the British Employers' Confederation. The matter has been exhaustively discussed and the effect of this very considerable extra burden upon industry has been very carefully weighed.
Another consideration is that the proposal to extend these benefits to children up to the age of sixteen would impose a heavier burden on industry than that which the State has assumed in respect of civilians injured during the war. I think your Lordships will agree that that is scarcely reasonable. Another consideration is that there are many thousands of children who have reached school-leaving age and are earning substantial wages at the present time, and the unqualified limit of fifteen in the Bill is much more favourable to the workman as a whole than a limit of fourteen with an extension to sixteen for those still receiving whole-time education. There is yet another consideration and that is that one of the main objects in framing the Bill has been to reduce to a minimum inquiries into means and other circumstances of the workman. This extension of allowances to certain categories of children between the ages of fourteen and sixteen would undoubtedly involve very considerable extra inquiry and delay in the handling of claims. My honourable friend the Undersecretary gave a promise in another place that he would consult with the employers about these proposed extensions and that he would investigate the question whether the proposal could be accepted. He has gone into the question, it has been considered with the representatives of the employers, and I am now asked to say on behalf of the Government that they cannot recommend this proposed extension. The Government feel that the representatives of the employers have made a case, and I want to make it clear that the decision reached by the Government is founded on grounds of equity and is not the result of pressure by the British Employers' Confederation.
107 In regard to the specific question raised by my noble friend opposite about partially-disabled men, the effect of the Bill is that in cases of total disability there will be paid a supplementary allowance of 5s. a week in every case—a uniform flat rate increase—and allowances to children at the rate of 4s. for each of the first two children and 3s. for each of any other children. If, however, a man is only partially disabled and therefore is either earning or is able to earn something less than his pre-accident wages, his rate of compensation is less than it would have been if he had been totally disabled. It is only fair and reasonable that his flat-rate allowance and the allowances in respect of his children should also be proportionately less. The allowances are scaled down so as to bear the same proportion to the full rates as his partial disability rate bears to what his rate would have been were he totally disabled. For example, if the weekly amount ascertained under the principal Act would have been 30s. a week for total incapacity and as a result of recovery and ability to earn wages for light work that benefit is reduced to 15s., the man will receive half the supplementary allowance provided in this Bill. That is the result of an agreement between the parties concerned and it is considered by the Government to be a fair and equitable arrangement.