HOW SOCIAL SECURITY WORKS

Bay of Plenty Beacon, Volume 6, Issue 51, 26 February 1943, Page 3

HOW SOCIAL SECURITY WORKS

THE FINANCIAL. SIDE

"some interesting statistics

* Shortly after the recent confer- f %nce of the local bodies in the WHi- 1 kato regarding the mounting figures * of hospital taxation, an # extensivc 1 Schedule of Social Security costs c and their relation to hospital finance' was released by the New Zealand 1 Counties Association. These figures make interesting reading and show the many benefits which are dis- J pensed in the course of social ad- * ministration in New Zealand, and * also draws attention to anomalies ' "which are in pressing need for rectification.. j The Counties Association, says , the statement, supported the principle of Social Securitj'- in 1938, and j when the principle became law, vis- , a lightening of the hospital ( rating burden on ratepayers as a natural sequence. Up to the present, \ .our picture of the future has not j <0. materialised, since hospital levies on \ the -contributory bodies are. consistently increasing, notwithstanding ] substantial payments made to hos- ] boards out of the Social Se- ] curit5 r Fund. . ] Revenue and Disbursement The total revenue paid into this fund during the first three, years of its existence reached the sum of £40,022,622, made up thus:— ' 1 .. £ " Socdal Security Registra- j tion fees 1,844,84.1 ( Charges on wages and income 29,402,811 ( V Penalties, fines, interest., etc 165,603 ( Government grants from Consolidated. Fund .. 7,800,000 ■ Budget Surplus. 1938-39 809,367 This huge sum was disbursed in • the following manner: — - £ Universal Superannuation (2 years) 686,022 i Age benefits 20,809,939 Widows' benefits 2,467,248 Orphans' benefits 50,868 1 ' Family benefits - 1,203,556 Invalids' benefits 2,953,219 Miners' benefits '... 264,567 Maori War allowances . 2,287 , Unemployment benefits 872,186 benefits 792,525 Emergency benefits .... 341,523 Maternity hospitals .... 1,352,660 'Hospitals 3,402,979 Medical and Pharmaceu- » tical 513,333 Administration expenses 1,285,875 balance on hand 31/3/42 3,023,835 • - £40,022,622 Rats on Benefits Superannuation benefits came into operation for the first time on Ist April, 1940. This benefit, is paid to all citizens with the necessary residential qualifications who. are 65 years, of- age and over, irrespective of their financial position. The benefit commenced at £10 per annum and by annual' increments of £2 10s a year will reach the maximum benefit of £78 per annum in 1968. For the first year, 38,938 benefits were, granted. The Age benefit takes the place * of the former Old-age pension. The basic rate has increased from 22s 6d to 30s a Aveek, and the age qualification reduced from 65 to 60 years for both men and women. Under the Social Security Act the rate of a widow's benefit has been . increased to 25s a week, with 10s • a week for each child under 16, Avith a maximum of £4. 10s weekly. "The maximum- rate of benefit for orphans is 15s a week. m Under the. Social Security Act the 4s a Aveek is paid as a family benefit. on all children of a family under 15 years of age, provided the family income does not exceed £5 a week. The maximum invalid pension is . 30s a week, plus 10 l s for a dependent wife, and 10s for each dependent child tinder 16. Miners' benefits are now 30s a week, plus 10s for the wife, and 10s for each.'child under 16—Avith. a maximum of £4 10s a Aveek. On the * death of the pensioner, there is provision for 17s 6d a Aveek for the widoAV. The few survivors of the Maori " War receive 30s a Aveek. The primary object of unemployment relief is to enable the Avorker to maintain himself and family unU" til he again obtains Avork. The maximum rate of benefit is 20s a Week, increased by 15s for Avife, and 5s for each child under 1(5. Maximum. weekly benefit £4 a week. The

number of persons granted benefit in 1940 was 34,702.; in. 1941, 22,911; and in 1942, 9,629. Sickness benefits, arc granted to meet the temporary situation created through the breadwinner being unable to work. Maximum benefit £4 a week (Friendly Society members £J5 a week) . Applications grant- 1 ed in 1910 totalled 17,800; in 1941, ( 23,425; and jn 1942, 25,156. During 1 the 1 three years 9024 applications were declined. Emergency benefits are granted on account of physical or mental deficiencies. In 1942, 2010 emergency benefits were granted. Still a Burden s One Avould naturally think that : the distribution of £30,443,940 < amongst the above 11 classes of beneficiaries, together with the alloca- : tion of £3,916,312 towards medical and , hospital expenses, would have < considerably eased the financial pressure on hospital ratepayers;- but : they haven't, as the following levies j paid by the' Municipalities and Coun-. I > . ties show:— £ ( 1937 714,251 1938 ,824,765 1939 1,093,457 ' 1940 966,230 1941 1,066,695 Reasons Advanced The. reasons for these ever-iincreas-ing claims by Hospital Boards seem to be:— Increase in the number of inpatients and out-patients. As was expected, free . hospital treatment, together with acute shortage, of labour resulting in disinclination to treat patients in their homes, have caused a marked increase in the number of patients treated, as the following figures show:— I.n- pati en t s Out-patients 1937 104,141 139,757 1 1938 .... 107,056 159,446 1939 114,451 173,529 1940 .... 123,540 206,023 1941 143,291 % 278.938 An increase in the number of patients means an increase in staff and wages. I;n 1937, a staff total of 536,4 was employed by Hospital Boards; in 194.1 the total increased to 7934, with a corresponding increase in salaries and Avage.s of £616,745. Overhead expenses in our general hospitals have grown in the following manner: — 1937 ... £1,103,129 1938 £1,289,907 1939 £1,493,795 1940 £1,707,576 1941 ' £2,050,706