INCREASES IN PENSIONS

Press, Volume LXXIX, Issue 23965, 4 June 1943, Page 6

INCREASES IN PENSIONS

FORMER SERVICEMEN AND WAR WIDOWS HIGHER FAMILY BENEFITS From Our Parliamentary Reporter WELLINGTON, June 3. Increases in pensions to former servicemen and war widows, which will cost £1,108,000 are provided for in the Financial Statement presented by the Minister of Finance (the Hon. W, Nash) in the House of Representatives this, evening. These increases, and increases in pensioners’, widows’, and family benefits, will operate from July 1. • "The proposals to provide the aged and other beneficiaries with a fixed sum of £ 1 12s 6d per week is to offset some of the costs of commodities that have increased since the outbreak of war,” said Mr Nash. The alteration in the widows’ benefit is for the purpose of meeting some of the extra load that comes to mother? when the breadwinner has passed away. “The extension of the family benefit is to increase the incomes of the homes where the wage, salary, or other income is not sufficient to provide those things which all parents desire to make available to their children. The other minor adjustments in the social security procedure are made to remove anomalies which have been revealed since the passing of the act. Payments to Servicemen Dealing with the increased expenditure of £1,108,000 for war pensions, Mr Nash said; "This last-mentioned amount includes £625,000 to cover the cost during the balance of this financial year of an increase in war pensions. It is proposed that the disablement pension will be increased from £2 to £3 a week, while the maximum economic pension will be £1 15s, and the rate for children 10s 6d a week as frpm July 1. These proposals will provide for a single disabled serviceman £4 15s a week, a married man without children £5 15s, with 10s 6d added for each dependent child. If there is a wife and two children, there will be an income of £6 16s a week, tax-free, going into the home. “It is also proposed to place the widows of servicemen in as nearly as possible the same position as they were in whilst their husbands were serving, and in order to effect this it is proposed to increase the pensions to war widows without children from £1 10s weekly to £2 weekly, and those of widows with children from £2 weekly to £2 10s weekly. Also it is proposed to increase the economic pensions from 17s 3d for widows without children to £1 weekly. Widows with children will receive an economic pension at the flat rate of £1 5s weekly, In addition to the economic pension the widows with children will receive a payment of 10s 6d a week for each child up to the usual qualifying age. “Under existing rates a wife when her husbgnd is killed while she is receiving an allotment of 4s 6d, would as a widow receive only £2 7s 6d weekly, this being less than the £2 16s payable while her husband is alive. Under the new scale her income as a widow will be made up to £3 a week. In the case of a wife with one child the service income would be £4 Os 6d weekly, which would decrease to £3 Is 6d a week as a widow. Now she will receive £4 5s 6d weekly. In the case of a wife, with two children the figures would be £4 lls, £3 14s 4d, and £4 16s respectively, “In circumstances where existing commitments render it necessary. for further assistance to be granted, the Soldiers’ Financial Assistance Board is being authorised to make grants to meet each particular case. Family Benefits "To ease the load of mothers where there are young children, it is proposed to increase the family benefit from the present rate of 6s to 7s 6d a child.' The cost for .the balance of thisuflnancial. year is estimated at £170,000,-. * •; ■- •• • “In .the case of family; benefits where the child allowance has been increased from 6s to 7s 6d, this means that 7s 6d will be paid to the mother for each child in every home where the basic income is below five guineas weekly.” "It Is proposed to increase the present rate of age benefits of £1 10s, plus Is 6d cost-of-living bonus, to a flat rate of £1 12s - 6d.‘This rate will also apply to invalids, miners, Maori war beneficiaries, and to war veterans. The rate for children will be maintained at 10s 6d for each child, and this rate will also apply to the sickness benefit. The cost of these increases for the balance of this financial year is estimated at £235,000, “The urgent question of anomalies as between persons with incomes up to £2 10s a week for a single person or £4 2s 6d a week for a married couple, who otherwise would be qualified for age benefits has been further examined, and under the new proposals any single person whose. social security charge and national security tax brings his total income below £l3O per annum will, if otherwise qualified, be eligible to receive by way of age benefit such amount of benefit as will bring his net income up to £l3O. Similarly the combined incomes of a married couple may be brought up to £214 10s per annum net. Increase for Widows “To assist widows whose circumstances preclude them from obtaining adequate regular employment, it is proposed to increase the widow’s benefit from the present rate of £1 Is including bonus, to £1 5s a week where there are no children, and from £1 6s 3d to £1 10s a week where there are dependent children. To the latter, of course, is added an allowance for children at the present rate of 10s 6d a week for each child. The cost of this additional benefit is estimated at £86.000 this year. “The circumstances of deserted wives has been the concern of the Government for some time and inquiries are proceeding with a view to amending the present arrangements, and, if possible, to transfer the responsibility for taking Court proceedings from the wife to the State. Under these circumstances. if the proposals are carried out, the wives and children will qualify for certain benefits from the Social Security Fund whilst steps will be. taken to recover from the husband the amounts paid. "It is proposed to amend the provisions of the Social Security Act to exempt from the charge as income legacies of up to £SOO, and certain other capital payments: also to ensure that no reduction takes place consequent on the transfer to an age benefit of a benefit payable to a blind beneficiary, when such beneficiary reaches the age of 60 years. The cost of these alterations is negligible.