Old Age Pension Act Came 50 Years Ago

Grey River Argus, 15 November 1948, Page 7

Old Age Pension Act Came 50 Years Ago

Monday, Nov. 1 was an important date in the history of social and humanitarian legislation because it is the 50th. anniversary of the coming into operation of the Old Age Pensions Act in New Zealand, the first piece of legislation of its kind in any British country at least, and the foundation stone of a social security structure that has become a model for the whole world, writes “Senex” in the “Southern Cross.” The Bill was passed through Parliament during 1898 by Seddon’s Liberal-Labour - Government. Naturally it met with opposition as everything new does from the conserva-tively-minded, who said that the old age pension would encourage wasteful habits, discourage thrift and undermine ■ the spirit of independence of the people. In any case the country could not afford it, so the critics said. Yet the pension provided was only £lB and it was hedged about by a rigid means ■ test not to mention a character test. The Act provided that £1 was to be deducted from the maximum of £lB for each £1 of income over £34 and for each £l5 of accumulated property above £5O. So an old person did not need to have much of this world’s wealth to fail to qualify for any pension at all, over £320 worth of accumulated property being sufficient to disqualify him altogether. But if the applicant successfully ran the gauntlet of the means test by proving that he was practically destitute, he had still to prove that he was of good moral character and that for five years immediately preceding the date of application he had been leading a sober and respectable life before he could qualify for this pension of £lB a year, which, even allowing for the lower cost of living 50 years ago, can hardly be regarded as munificient. Thousands of Applicants However it was a beginning and that there was a need for the pension was shown by the steady rush of applicants immediately after the Act .came into force. By March 31, 1899, NIST pensions had been granted at a total cost to the country of £128,082. But what would the critics of that time have said had they been told that in 50 years’ time there would be 117,161 old age pensions or age benefits, as they are called now, in force in New Zealand at a total cost of £12,976,286? In his second annual report the then registrar of pensions, Mr E. Mason, said: “In my first report I was able to state that the Act had been smoothly and effectively administered from its inception. To this, after a year’s additional experience, I may add that the usefulness of the measure is now generally recognised and that the anticipated difficulties raised by adverse critics are not apparent in its practical working. “As a consequence of its success there is very little matter for comment. While in some instances the pension has been misapplied, the number of beneficiaries reported as so offending is relatively small. Testimony to the good character of old age pensioners generally is also borne by the fact that out of 6178 claims in the second year only 13 were rejected on the ground that the conditions relative to character had not been fulfilled.” The maximum pension was gradually raised from the lew level of £lB till in 1925 it had reached £45 10s. In 1936, following- the advent of the Labour Government to power, it was increased to £52 and since then under Labour rule it has been -steadily raised until now it is £ll7 a year. There is still a means test but it is much more liberal than it was half a century ago. A single applicant is allowed an income of £52 a year, a house property, and realisable assets to the value of £5OO before any deduction is made from his age benefit. Where a man and wife are both drawing the benefit, they are allowed a oint income of £52, a house, and realisable assets to the value of £lOOO before any deductions are made. Other Pensions ’Acts The Old Age Pensions Act was the only measure of its kind on the New Zealand statute book until 1911 when the Widows Pension Act was passed. The following year a Military Pensions Act provided for veterans of the Maori wars. The Great War gave rise to the War Pensions Act of 1915 providing for disabled members of the Ist. N.Z.E.F. and for the dependants of disabled, deceased or missing members, and in the same year an Act was passed to provide pensions for miners who were unable to work because of the disease known as miners’ phithisis. The Family Allowance Act, making provision in a modest sort of way for the children of people of limited incomes, came into force on April 1, 1927.