UNFAIR LEVY

Bay of Plenty Beacon, Volume 8, Issue 11, 26 September 1944, Page 2

UNFAIR LEVY

SOCIAL SECURITY PAYMENTS DEPENDENTS OF SOLDIERS Recently, Mi' W. Sui'livan (National Bay of Plenty) asked the Minister of. Social Security whether he would take the. necessary steps to provide that where a son on overseas service made an allotment to liis widowed mother who was a beneficiary under the. Social Security Act the mother was not deprived of her benefits, to the extent/ of liar son's allotment. He said that a case could be quoted where such a beneficiary and widow had her benefits reduced by 2s a day or £36 8s a year: thus the son on service was indirectly called upon to maivc a contribution of £36 Bs. a year to the | Social Security Fund. Replying, the Minister (Mr Parry) said that the question raised was one which already had received careful attention. It Avas apparent from the facts given that the beneficiary concerned had other income as ( otherwise the allotment would have caused no reduction in the Social Security benefit. Any allotment paid to a beneficiary for her own use and advantage came within the definition of "income" for benefit pur poses and was charged the same as income from any other sourte. For widowed mothers a concession had been extended in that only up to. 2s daily £36 8s a year) was talced into account in assessing Social Security benefit, any amount received as allotment in excess of 2s daily not being chargeable as income. As there was an exemption of at least £52 a year for beneficiaries the Social Security grant for a widowed mother was not reduced solely because of an allotment received from a serving member of. the some other income being necessary to cause any reduction in benefit. Any allotment or portion of an allotment held on the. allottee's account or expended for his advantage was not treated as the income of the beneficiary. It was not proposed at the present time to alter the law in respect, to thf allowable income received by th< beneficiaries for their own use anc advantage.