Family Allowances (Special Separation Grant Scheme) (Hansard, 9 February 1943)

§ Sir J. Grigg

The normal family allowances payable to married officers and men are intended to assist them in meeting the current costs of maintenance of their families. They are not admissible in respect of families in enemy, enemy-occupied, and other countries outside the sterling area to which, owing to their occupation by the enemy, or to currency restrictions, remittances cannot be made because it is physically impossible for the officer or man to contribute to the maintenance of his family. To meet such cases a war time scheme known as the Special Separation Grant Scheme was introduced in February, 1941, under which those officers and men so affected were enabled to accumulate a credit, if they elected to do so, to be paid out when the War Office gave permission, i.e., normally when the1182W family returned to the sterling area or in any case as soon as circumstances permitted after the war, under such conditions as might then be prescribed. The credit is built up by contributions in the case of an officer of 2/7ths of his pay by the officer and 21s. a week by the State, and, in the case of a man, of the normal "Qualifying Allotment" for family allowance by the man (now varying from 3s. 6d. to 24s. 6d. a week according to the scale of pay) and by the State of 13s. a week, plus a state allotment of 3s. 6d. a week.

Since this scheme was introduced it has become possible, in accordance with the concessions announced by the Chancellor of the Exchequer early last year, to send as from 1st January 1942, limited remittances to families, other than adults not in charge of children, in countries outside the sterling area, other than in enemy or enemy-occupied territories. In such cases family allowances are admissible provided that remittances are made to the extent of the allowances or the maximum limit of remittance, whichever is the less. There still remain, however, families in enemy or enemy-occupied countries and in other countries outside the sterling area to whom money cannot be remitted. As explained above, family allowances cannot be issued in such cases and to cover these the Special Separation Scheme was initiated. The position of the officers and men who are still prevented from maintaining their families has now been re-examined.

It is necessary to consider separately the cases of families in enemy or enemy-occupied countries and of those in other countries outside the sterling area to whom money could not be remitted prior to 1st January, 1942, or to whom money still cannot be remitted. The families in enemy or enemy-occupied countries can usually receive no remittances but, in many cases, distress payments are made to them through neutral Consuls. The conditions of their maintenance differ widely and in many instances the full facts are not known. In the Channel Islands, for example, it seems probable that the Islands are currently supporting the Service families, and the obligation to the Islands may possibly be a matter for State settlement. There may be other instances in which an international settlement will prove to be the best method of adjusting any payments made to the families. In such cases, no pay 1183W ment of family allowance will be made to the officers or men concerned. In other cases, if an officer or man desires to make a payment for the past maintenance of his family at the time when remittances in respect of such maintenance become legally possible and, in fact, makes such payment, the Government will be prepared to issue to the officer or man a sum sufficient to cover the payment within the maximum limit of the amount of family lodging allowance or family allowance which has been inadmissible under normal rules. This maximum limit may be abated by the amount of any distress payments which have been met by the State and have not subsequently been repaid by the officer or man, and by the amount of any other claim upon the State which arises in respect of their families. Further, it must be understood that no assurance can be given as to the time when such remittances might become possible and, in particular, that no claim whatever to priority can be recognised in the immediate post-war period for such remittances in competition with remittances for purposes of national importance.

It is an essential condition of the grant of family allowance by the State that a soldier must add a contribution from his pay, and in so far as it is not proposed to collect a qualifying allotment from pay, a substantial concession will be made to the soldiers concerned. In the case of families living in other countries outside the sterling area to whom money could not be remitted prior to 1st January, 1942, or to whom money cannot still be remitted, it is to be remembered that certain service personnel in common with civilians who have sent their wives and children to these countries, in particular to Canada and the United States of America, have signed an undertaking not to remit money for their maintenance directly or indirectly. The making of payments after the war for the maintenance of the families of such personnel in these countries can, therefore, hardly be felt to be as necessary as it may be in the case of other families in a similar situation, for example, in enemy or enemy-occupied countries. It has been, however, decided to grant in such cases under the same conditions, the same concession as has been described in the preceding paragraphs.

1184W

On the introduction of these new arrangements those who had already acquired credit under the scheme will be permitted to continue to contribute to it, but, if they do, they will forfeit the potential grant of family allowances which is now offered. Alternatively they may close down their credit, receiving back at once the full amount that they themselves contributed and in substitution obtaining the benefit of the present decision. A similar choice will be given in the future to new entrants into the Services. Similar arrangements will be made in the Royal Navy and the Royal Air Force.