HC Deb 19 December 1912 vol 45 cc1699-700W

asked the Secretary to the Treasury if he will say when the first deductions will be made from the account of a male and female deposit contributor, respectively, for administration expenses, cost of medical benefit, and of sanatorium benefit; how much will then be deducted under each of these headings; and at what rate will the subsequent annual deductions be made for the same purposes?


As regards sanatorium benefit and administration expenses for the first six months of the Act, the following deductions will be made:—Sanatorium: One penny for every four contributions or part thereof paid in that period. Administration (including administration expenses in connection with medical benefit): One-third of a penny for each contribution paid in that period.

These sums are increased proportionately in the case of those classes of insured persons who are entitled to sanatorium benefit, but do not receive the State Grant of two-ninths or one-fourth. The above deductions will be made when the deposit contributor's account for each quarter is made up after the surrender of his contribution card. As regards subsequent deductions, the charge for sanatorium benefit is fixed by the Act at 1s. 3d. The Commissioners propose by Regulation to fix 1s. 9d. as the gross annual sum payable to the Insurance Committee for expenses of administration (including administration of medical benefit). As regards medical benefit (for which no charge is required in the first six months of the Act), the charge has to be fixed by the insurance committee with the consent of the Commissioners. The Commissioners have suggested that the gross charge in respect of the sum required for medical benefit (that is including the State Grant provided in the Act, but not the additional Grant which Parliament is to be asked to vote) should be fixed at 6s. Of the gross sums mentioned above, two-ninths (or one-fourth in the case of women) is, with the exception of certain classes of persons, payable out of moneys provided by Parliament, and the net amount only will be deducted from the deposit contributor's account.