§ Sir W. de FRECEasked (1) the Minister of Health whether his Department has considered the likelihood that when the insurance year closes on 3rd July several million insured persons will be in arrear with their contributions owing to the amount of unemployment; whether such insured persons will, unless they pay 12s. before 31st October to liquidate 25 contributions in arrear, be disqualified from receiving sickness, disablement, and maternity benefit for a whole 12 months; whether he can take any steps to ease what may become a very serious situation; whether, in particular, he will consider the possibility of allowing approved societies to use some of their surplus funds, as ascertained by the recent valuation, to assist in paying off members' arrears;
(2) the Financial Secretary to the Treasury whether the Government will, in view of the vast volume of unemployment, consider the possibility of extending the excusing of contributions under the National Health Insurance Act to persons while unemployed?
§ Sir A. MONDThe hon. Member has correctly stated the position of insured persons who will be in arrear with their contributions at the end of the insurance contribution year. The matter has engaged the close attention of the Department, and has already been discussed with a representative conference of approved societies. As a result it has been decided to ease the situation by allowing an insured person an extended period from July to the end of November in which he may make the comparatively small payment necessary to avoid or mitigate any reduction of benefits during the following calendar year. These payments are on a graduated scale varying from 1s. to 12s. in accordance with the extent of the arrears, and in the extreme case where the arrears exceed 26 a single payment of 5s. would qualify the insured person for sickness benefit at 8s. a week (in addition to any amount added by way of additional benefit), with full maternity benefit, and the rate of sickness benefit would be increased by 1s. a week for each further instalment of 1s. paid during the five months. There is nothing to prevent a society which has a disposable surplus on valuation submitting, for the approval of the Department, a scheme for utilising 855W the whole or part of the surplus for the remission of arrears.