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G R E T.
COPY NO
- 139,152-)
C A B I N E T .
NATIONAL HEALTH AND CONTRIBUTORY P?:N8I0NS. INSURANCE.
REPORT CP CABINET COIvMITTEE
In pursuance of Cabine t 20 (32) Conclusion 7, a Committee
consisting of
The Minister of Health (in the Chair)
The Chancellor of the Exchequer
(or his representative)
The Home Secretary
The Secretary of State for Dominion Affairs
The Secretary of State for Scotland
The Minister of Labour
was appointed to examine the questions raised In the Minister of
Health's memorandum (CoPc 113 (52)) other than those settled, by
the Cabinet at the meeting referred to above, namely, the pro­
posals a.s to Women's Contributions and Benefits and Arrears of
Contributions due to iinemploymeaito
The Committee's enquiry shews that the only question of
substance not settled by the Cabinet relates to the system of
prolonging National Health Insurance rights for a period after
employment ceaseso
Since 1928 a free continuance of insurance
status has been afforded, In-cases of continuous unemployment
for an average period of 2% years.
Despite this provision it
was found at the end of 1930 that there was a considerable
number of persons who had been without any work for several
years, and whose insurance was consequently duu to cease at the
end of that year.
The Government of the day Introduced special
legislation to extend the insurance of these persons for the
year 1931, and -this extension has recently been repeated so as
to cover the year 1932-.
9 ' o
3c
In default of further legislation these unemployed, persons
will fall out of National Health Insurance on the 31st December
1951-
The Minister of Health's proposal in these circumstances
was ­
(i) that t h e s e persons should be continued in the
Insurance Scheme for one further year to 31st
December 1933 and be entitled to Medical Benefit
during that year (together with all Pension rights)5
(ii) thereafter, if a man should die within one year
of ceasing to be insured his widow should remain
entitled to her pension - that is to say5 the
genuinely unemployed man would have a free period
of Health Insurance for a minimum of 34 "to 4
years, and for widow's pension of between 44/ and
5 years;
(iii) that after December, 1933 the permanent provisions
of the 1928 Act should apply (i.e. continuance of
insurance status for 2;£- years on average) 3
(iv) that nevertheless the title to widow's pension
should always persist for one year after the
cessation from Health Insurance ( i * e o 3 : J years
on average in all)t
(v) that the cost of prolongation for the year 1933
so far a s regards health insurance should be
borne on National Health Insurance funds generally
through an adjustment of the transfer values which
a r e carried to the Reserve Sucpense Fund on tire
cessation of insurancej
(vi) that the cost of t h e extensions for Pensions proposed
above should fall upon the Pensions Fund increasing
pro taivtOj the liability of the Exchequer under
that Scheme?
P
(vii) that, in t h e c a s e of re-entry to employment and
insurance Within a certain t i m e , the qualifying
conditions for widows' pensions should be the
lapse of 26 weeks., and t h e payment of 25
contributions, after re-entry, instead of 104
w e e k s and t h e payment of 104 contributions a s at
present.
The Committee b y a m a j o r i t y recommend t o
4.
C a b i n e t t h e a d o p t i o n o f t h e M i n i s t e r of
the
Health's
p r o p o s a l s , as s e t out i n paragraph 3 above.
The Home S e c r e t a r y and t h e S e c r e t a r y of
5.
f o r S c o t l a n d were u n a b l e t o c o n c u r f u l l y
recommendation c o n t a i n e d i n t h e p r e c e d i n g
in
iitate
the
paragraph,
a n d t h e S e c r e t a r y o f S t a t e f o r S c o t l a n d made t h e
following
reservation:
I n h i s v i e w , t h e scheme s u b m i t t e d by t h e
o f H e a l t h f a i l e d t o make a d e q u a t e p r o v i s i o n f o r
s e r v i n g medical b e n e f i t and p e n s i o n r i g h t s the l a t t e r .
Minister
pre­
especially
He s u b m i t t e d t h a t t h e s e r i g h t s s h o u l d b e
continued in respect
contributions
of
e v e r y p e r s o n who h a s p a i d 160
and h a s b e e n 208 w e e k s i n i n s u r a n c e ,
who i s a v a i l a b l e f o r b u t u n a b l e t o o b t a i n
and
employment.
In urging t h i s p o l i c y he s t r e s s e d the
injustice
"Which t h e M i n i s t e r o f H e a l t h ' s p r o p o s a l s would" I n v o l v e
particularly
in the f o l l o w i n g
two c l a s s e s
of
cases:­
(l)
t h e widow ( a g e d s a y 55) o f a man who m i g h t
contribute
t o t h e p e n s i o n s scheme f o r , s a y , 1C? 15 o r
e v e n 2G y e a r s might b e r e f u s e d a p e n s i o n b e c a u s e h e r
h u s b a n d h a d b e e n o u t o f work f o r more t h a n 3^ y e a r s ;
w h e r e a s , u n d e r t h e P e n s i o n s A c t , 1929, a widow of
the
same a g e n i g h t g e t a p e n s i o n a l t h o u g h h e r husband had p a i d
no c o n t r i b u t i o n s w h a t s o e v e r e i t h e r u n d e r t h e H e a l t h
I n s u r a n c e or P e n s i o n s
Acts.
(2) t h e p e n s i o n r i g h t s
regular
insurance for
of a man who h a d b e e n
in
10, 15 o r e v e n 20 y e a r s w o u l d n o t be
c o n t i n u e d f o r any l o n g e r p e r i o d t h a n t h e man who h a d b e e n
in insurance for
o n l y 160
o n l y 208 w c o k s a n d who n i g h t h a v e p a i d
contributions.
Vith regard to
at l e a s t
provide
(2) he u r g e d t h a t t h e scheme
either
should
(a) t h a t
t h e p e r i o d of
c o n t i n u a n c e of
pension
r i g h t s s h o u l d be on a g r a d u a t e d s c a l e a c c o r d i n g t o
l e n g t h o f t i m e a man h a s b e e n i n i n s u r a n c e s o r
the
possibly
( a s had b e e n s u g g e s t e d b y t h e Home S e c r e t a r y )
(b)
t h a t an o p p o r t u n i t y of p r e s e r v i n g
r i g h t s by b e c o m i n g a v o l u n t a r y c o n t r i b u t o r
pension
021 e a s y
terms f o r pension purposes only s h o u l d be g i v e n t o a
man w h o , h a v i n g b e e n a l o n g t i m e
his
i n insurances,
employment and i s u n a b l e t o f i n d o t h e r
S i g n e d on b e h a l f
of
employment,,
the Committee.
E. HILTON YOUNG,
Chairman.
2 , W h i t e h a l l Gardens., S . ' S . l . ,
12th A p r i l ,
1932.
loses