THE "MEANS TEST”

Hokitika Guardian, 22 September 1932, Page 3

THE "MEANS TEST”

ENGLISH BUDGET ECONOMIES. FINANCES AND UNEMPLOYMENT. LONDON, September 21. When the British Emergency Budget was introduced in September last year, certain reforms in respect >of unemployment, benefits were intimated by the Chancellor of the Exchequer. These aimed at reducing the expenditure from the Unemployment Fund, which had been insolvent since July, 1921, being in debt to the extent of £39,000,000. Economies were proposed under four heads, and subsequently put into operation as-follows! — (1) Employers’ and employees’ contributions were increased all round (representing a saying of £10’,000,000.) (2) Benefits were reduced by 10 per cent., except children’s allowances. Estimated. savings over.. £12,000,000. (3) A. needs (or means) test. (4) Removal of anomalies, involving restrictions on payments to certain categories ;.of claimants, chieily seasonal workers and married women.

.; The “needs test” deals with transitional benefit. Under the old, conditions the contributions qualification for ordinary benefit required a claimant to prove every benefit quarter that he had paid 30 contributions in the preceding iiwo years or 30 contributions ,at any time; on the. latter basis, transitional benefit could, (although legally terminable by April,. 1933) be drawn without time ‘limit. As a' result, many.'.claimants have been transferred from ordinary to transitional benefit, .The needs test is’-applied by Local Public Assistance Committees, who also determined the ambuht of benefit payable to claimants. Decisions are -reviewed at least once every, four weeks. Between November 12th when the test was first applied; and March 19th, 1932, 4,222,563 decisions!, including revisions, were made in .respect of more than 1 benefit was awarded it ’ess than rrdinary rates, while in 429.390 cases,or 10.2 reir cent,, the needs of applicants -were held not to justify any payment at all.