§ 4.17 p.m.
§ BARONESS PHILLIPSMy Lords, with your Lordships' permission, I should like to repeat a Statement made by my right honourable friend the Minister of Social Security in another place. The Statement is as follows:
"I should like to make a statement about improvements in National Insurance and Industrial Injuries benefits, supplementary benefits, and war pensions.
"I have presented to-day a Bill to increase benefits and contributions under the National Insurance and Industrial Injuries Schemes; and an explanatory White Paper and a Report by the Government Actuary will be available later this afternoon. A Financial Memorandum is attached to the Bill.
"That main proposals in the Bill are as follows. The standard rate of National Insurance benefits will be increased by 10s. a week for a single person to £4 10s., and by 16s. for a married couple to £7 6s.
"Increases of benefit for children are to go up by 2s. 6d. a week.
"Thus the weekly flat-rate of benefit, including family allowance, for a man and wife with two children will be £9 16s.
"Widowed mother's allowance and the widow's pension will also be raised to £4 10s. a week. The benefit for a 1420 widow with two children, including family allowance, will be £8 15s.
"Parallel improvements will be made in the other flat rate National Insurance benefits.
"No changes are proposed on this occasion in earnings-related benefits or in the graduated retirement pension.
"Men and women who defer retirement and continue paying contributions after minimum pension age earn increments to their eventual retirement pension. It is proposed in the Bill to improve the rate at which increments are earned in the future—by changing the qualification for an increment from twelve contributions to nine.
"Death grant is increased by the Bill from £25 to £30.
"The Industrial Injuries provisions in the Bill include an increase of 17s. in the 100 per cent. disablement pension, bringing it to £7 12s. a week. Injury benefit is to be increased by 10s. a week, maintaining the present difference between injury benefit and sickness benefit. The new rate will thus be £7 5s. for a single man, and £10 1s. a man and wife.
"The standard rate of Industrial Injuries widow's pension is raised from £4 10s. to £5 1s. The addition for each child will be increased by 2s. 6d.
"The lower rate pension payable to the younger childless widow is to be increased from £1 to £1 10s. Constant attendance allowance, unemployability supplement and special hardship allowance will also be increased.
"The higher insurance benefits will entail a corresponding increase in contributions. The Class 1 insurance stamp for a man will go up by 4s. 3d. a week, of which the employee will pay 2s. and his employer 2s. 3d.
"There will be no change in the graduated contributions.
"The contribution for employed women will go up by 1s. 9d. for the employee and 2s. for the employer. Corresponding changes will be made in the juvenile and other contribution rates: for example, a self-employed man will pay an extra 2s. 4d. a week.
"The cost of the improved National Insurance and Industrial Injuries benefits will be £219 million and £10.6 million respectively in the first full year.
1421 "The Government also propose to increase the basic Supplementary Benefit rates. Draft regulations incorporating the new rates will shortly be laid for approval by the House.
"The main changes proposed are that the scale rate for a single householder will increase by 5s. a week to £4 6s. and the scale rate for a married couple will rise by 8s. a week to £7 1s. Increases will also be made in the rates for other adults and for children.
"I will, with permission, circulate a list of the proposals in the OFFICIAL REPORT for the convenience of honourable Members.
"I now come to war pensions, which are dealt with by Royal Warrant for the Army and corresponding instruments for the Royal Navy, the Royal Air Force, and civilians and others. War pensioners will of course share with the population in general in the National Insurance improvements, but it is, I know, generally accepted that those who have been disabled or bereaved as a result of war service are entitled to something over and above the ordinary provisions.
"The basic rate of pension for 100 per cent. disablement will be increased from £6 15s. to £7 12s. and the standard rate of war widow's pension from £5 5s. to £5 17s. The lower rate of pension payable to the childless widow under 40 will be increased, like the corresponding industrial injuries pension, to £1 10s. The additions to pension for war widows' children will be increased by 2s. 6d. for each child.
"The main supplementary allowances—rent allowance for widows, and constant attendance allowance, un
| PRINCIPAL CHANGES IN WAR PENIONS | ||||||
| Present rate | Proposed rate | |||||
| £ | s. | d. | £ | s. | d. | |
| Disablement pensions (100 per cent. assessment) | 6 | 15 | 0 a week | 7 | 12 | 0 a week |
| ex-non-commissioned officers | Increase of 17s. a week | |||||
| ex-officers | Increase of £43 a year | |||||
| ex-regular officers—disablement addition | Increase of £43 a year | |||||
| Payments for disablement assessed at less than 100 per cent, will be increased proportionately | ||||||
| Constant attendance allowance | 1 | 7 | 6 a week | 1 | 10 | 0 a week |
| 2 | 1 | 6 a week | 2 | 5 | 0 a week | |
| Normal maximum | 2 | 15 | 0 a week | 3 | 0 | 0 a week |
| 4 | 2 | 6 a week | 4 | 10 | 0 a week | |
| Exceptional maximum | 5 | 10 | 0 a week | 6 | 0 | 0 a week |
| Unemployability supplement | 4 | 7 | 6 a week | 4 | 17 | 6 a week |
§ employability supplement and allowance for lowered standard of occupation for disablement pensioners—will also be increased.
§ "On this occasion I propose in addition to increase the rate of comforts allowance, which goes to the most severely disabled pensioners, and of age allowance, which is payable both to elderly war widows and to the seriously disabled. I will, with permission, circulate a list of the principal changes in the OFFICIAL REPORT. The cost of the war pensions changes will be £12.8 million in the first year.
§ "The net total cost of the improvements, after taking account of the effect on Supplementary Benefits of the other benefit increases, will be about £220 million in the first full year.
§ "The Bill includes a clause giving temporary power to vary family allowances by Order and to make consequential adjustments in National Insurance and Industrial Injuries increases for children. As the House knows, we intend to announce our proposals for family endowment before the Summer Recess, and we have thought it right to seek this power so that, if appropriate, any interim improvement in family allowances could operate from the same date as the increases in other benefits. The clause is precautionary, arising from the intervention of the Summer Recess, and in no way prejudges the Government's proposals for family endowment.
§ "The appointed day for the increase in most benefits, for the new contributions, and for the higher Supplementary Benefits will be October 30."
§ Following are the changes and proposals referred to in the Statement:
1423| Present rate | Proposed rate | |||||
| £ | s. | d. | £ | s. | d. | |
| The allowances payable with this supplement (and with treatment allowances) will also be increased: | ||||||
| Wife or other adult dependant | 2 | 10 | 0 a week | 2 | 16 | 0 a week |
| First child | 1 | 2 | 6 a week | 1 | 5 | 0 a week |
| Each other child | 14 | 6 a week | 17 | 0 a week | ||
| Allowance for lowered standard of occupation up to | 2 | 14 | 0 a week | 3 | 1 | 0 a week |
| Comforts allowance: | ||||||
| Lower rate | 10 | 0 a week | 12 | 6 a week | ||
| Higher rate | 1 | 0 | 0 a week | 1 | 5 | 0 a week |
| Age allowance: | ||||||
| 40 or 50 per cent. rate | 5 | 0 a week | 7 | 6 a week | ||
| 60 or 70 per cent. rate | 7 | 6 a week | 10 | 0 a week | ||
| 80 or 90 per cent. rate | 10 | 0 a week | 15 | 0 a week | ||
| 100 per cent. rate | 15 | 0 a week | 1 | 0 | 0 a week | |
| Clothing allowance: | ||||||
| Lower rate | 7 | 10 | 0 a year | 9 | 0 | 0 a year |
| Higher rate | 12 | 10 | 0 a year | 14 | 0 | 0 a year |
| Widow's pensions: | ||||||
| Widows of ex-privates or equivalent | 5 | 5 | 0 a week | 5 | 17 | 0 a week |
| Widows of ex-non-commissioned officers | Increase of 12s. a week | |||||
| Widows of ex-officers | Increase of £31 a year | |||||
| Childless under 40 widow of private | 1 | 0 | 0 a week | 1 | 10 | 0 a week |
| For each child (other ranks) | 2 | 4 | 0 a week | 2 | 6 | 6 a week |
| For each child (officers) | 122 | 10 | 0 a year | 129 | 0 | 0 a year |
| Rent allowance for widows with children, up to | 2 | 0 | 0 a week | 2 | 5 | 0 a week |
| Age allowance for widows | 10 | 0 a week | 15 | 0 a week | ||
| Pensions for unmarried dependants who lived as wives of men now deceased: | ||||||
| Other ranks | 4 | 17 | 6 a week | 5 | 9 | 0 a week |
| Officers | 279 | 0 | 0 a year | 309 | 0 | 0 a year |
| Orphan's pensions: | ||||||
| Other ranks, under 15 years | 2 | 4 | 0 a week | 2 | 6 | 6 a week |
| Other ranks, 15 years and over | 3 | 2 | 0 a week | 3 | 9 | 6 a week |
| Officers, under 18 years | 170 | 10 | 0 a year | 190 | 0 | 0 a year |
| Adult orphan incapable of self-support | 4 | 0 | 0 a week | 4 | 10 | 0 a week |
| PROPOSED SUPPLEMENTARY BENEFIT RATES | ||||||
| Present Weekly Rate | Proposed Weekly Rate | |||||
| £ | s. | d. | £ | s. | d. | |
| ORDINARY SCALE | ||||||
| (a) Husband and wife | 6 | 13 | 0 | 7 | 1 | 0 |
| (b) Person living alone | 4 | 1 | 0 | 4 | 6 | 0 |
| (c) Any other person aged— | ||||||
| (i) not less than 21 years | 3 | 9 | 0 | 3 | 11 | 0 |
| (ii) less than 21 but not less than 18 years | 2 | 15 | 0 | 2 | 18 | 0 |
| (iii) less than 18 but not less than 16 years | 2 | 7 | 0 | 2 | 10 | 0 |
| (iv) less than 16 but not less than 11 years | 1 | 15 | 0 | 1 | 17 | 0 |
| (v) less than 11 but not less than 5 years | 1 | 8 | 0 | 1 | 10 | 0 |
| (vi) less than 5 years | 1 | 3 | 6 | 1 | 5 | 0 |
| BLIND SCALE | ||||||
| (a) Husband and Wife— | ||||||
| (i) if one of them blind | 7 | 17 | 6 | 8 | 5 | 6 |
| (ii) if both of them blind | 8 | 13 | 6 | 9 | 1 | 6 |
| (b) Any other blind person aged— | ||||||
| (i) not less than 21 years | 5 | 5 | 6 | 5 | 10 | 6 |
| (ii) less than 21 but not less than 18 years | 3 | 15 | 0 | 3 | 18 | 0 |
| (iii) less than 18 but not less than 16 years | 3 | 3 | 0 | 3 | 6 | 0 |
| (iv) less than 16 but not less than 11 years | 1 | 15 | 0 | 1 | 17 | 0 |
| (v) less than 11 but not less than 5 years | 1 | 8 | 0 | 1 | 10 | 0 |
| (iv) less than 5 years | 1 | 3 | 6 | 1 | 5 | 0 |
§ Notes
§ (i) An allowance for rent is added to the above rates.
§ (ii) Both the existing and proposed rates given above exclude the 9s. long-term addition which is added to the requirements of persons over pensionable age an to those of persons under pensionable age (other than the unemployed) who have received supplementary benefit (or national assistance) for a period of two years.
1425§ LORD BROOKE OF CUMNORMy Lords, may I thank the noble Baroness for repeating the Statement, and congratulate her on having the opportunity to do so on a day when she is the centrepiece of such a delightful article about your Lordships' House in a national newspaper. I welcome the fact, as I am sure will all noble Lords, that people living on small incomes which largely consist of National Insurance benefits will receive these increases which the noble Baroness has described to offset the erosion of these benefits by the rise in the cost of living since the Labour Government came to power and last increased the benefits. I particularly welcome the fact that these increases are to become payable before the winter with the heavier costs for light and heat which winter brings, particularly to old people.
May I ask whether the increased rate of war pensions, which we also welcome, will start on October 30 as well as the benefit increases? The Statement was slightly ambiguous about that matter. Secondly, all these increases have to be paid for, and the big increase in weekly contributions will be much less welcome. Could the noble Baroness clarify the total cost of all these increases? Could she explain how much is to be met by increased contributions from employers and employed, and how much in total will fall upon the taxpayer?
§ BARONESS PHILLIPSMy Lords, after Lord Brooke of Cumnor's very generous and charming remarks, I am sorry to say that I am unable to give him a reply to his second question. I shall be happy to obtain the answer for him. In connection with his first question, it appears—and again I will verify this—that in fact the date is the same.
§ LORD AMULREEMy Lords, I too, should like to join in thanking the noble Baroness for making the statement, and also to associate myself with the remarks of the noble Lord, Lord Brooke of Cum-nor, about the article which appeared in the newspaper this morning. But I should like to ask whether these new improved rates will make any difference at all to 1426 the unfortunate people, though they are not very large in number, who do not qualify for pensions at all because they have never been in the contributory scheme.
§ BARONESS PHILLIPSMy Lords, the reply to the noble Lord is that they are not covered by this particular Bill. The Government are at the moment having a great deal of discussion on the whole question of relieving poverty within the country, and long-term proposals will be brought before the House before the end of the Summer Recess.
§ LORD ILFORDMy Lords, may I ask the noble Baroness whether it is intended to continue the existing graduated scheme in its present form?
§ BARONESS PHILLIPSThe answer is, yes, my Lords.
§ LORD BROOKE OF CUMNORMy Lords, I hope the noble Baroness will not think it churlish of me if I express regret that she was not able to answer my second question. Is she aware that there are many people who feel that one of the dangers affecting a country like ours is that proposals for higher benefits are welcomed without at the same time sufficient realisation of the cost which we shall all have to bear? I think my question was a very pertinent one which should be answered.
§ BARONESS PHILLIPSMy Lords, I appreciate the noble Lord's point. I am sorry that although I have many facts before me, inevitably, of course, I have not got the questions which I might be asked. I will see that the noble Lord has this information.
LORD SALTOUNMy Lords, may I ask whether the Government will circulate the relevant figures as the answer to a Question?
§ BARONESS PHILLIPSMy Lords, I understand that under the procedure a Question would have to be put down for that purpose. Perhaps the noble Lord would do that, and we should then be happy to see to it.