§ Mr. ROYDSalso asked the Chancellor of the Exchequer whether, having regard to the fact that under Section 9 (4) of the National Insurance Act there is no reduced benefit for an employed person entering insurance at any time during the first year after the commencement of the Act, and that under Section 10 (4) (c) of the same Act no arrears can be formed during that period and the payment of weekly contributions is exempted, directions will be given to the Government lecturers to make it clear that an employed person need not enter insurance on the commencement of the Act, but may do so at any time within twelve months thereafter without his benefits being reduced or arrears being formed?
§ Mr. MASTERMANThe suggestion contained in the question, either that there is any option as to the payment of contributions from the 15th July, or that the failure to pay the contributions will not result in loss, are without foundation. All persons employed within the meaning of the Act enter into insurance automatically upon the 15th July, and from that date onward their employers will be liable to penalties if they do not pay contributions in respect of them. Although arrears accruing in the case of an employed contributor during the first twelve months after the commencement of the Act are not taken into account under Section 10, it will be necessary that not only should six months have elapsed since entry into insurance, but that twenty-six weekly contributions should also have been paid before sickness, or maternity benefits are payable.