(c) crown copyright Catalogue Reference:CAB/129/97 Image Reference:0043 T H I S D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T Printed for the Cabinet. June 1959 T h e circulation of this p a p e r h a s been strictly limited. for t h e p e r s o n a l use'of:':": I t is issued .". T O P S E C R E T - -Copy N o . C. (59) 9 3 2nd June, 1959 CABINET PROPOSED CHANGES IN NATIONAL ASSISTANCE M E M O R A N D U M B Y T H E M I N I S T E R O F P E N S I O N S A N D NATIONAL INSURANCE A s r e q u e s t e d b y t h e Ministerial C o m m i t t e e o n P e n s i o n s I a m s u b m i t t i n g h e r e w i t h , for t h e a p p r o v a l of t h e C a b i n e t , drafts of a s h o r t o r a l s t a t e m e n t p r o p o s e d t o b e m a d e in P a r l i a m e n t a n d of a W h i t e P a p e r . I a m i n d e b t e d t o t h e Chancellor of t h e D u c h y of L a n c a s t e r for help a n d advice o n t h e draft of t h e former, a n d t o my colleagues o n t h e Ministerial C o m m i t t e e for suggestions for t h e latter. 2. T h e draft s t a t e m e n t refers briefly t o , a n d the W h i t e P a p e r sets o u t at length, a set of p r o p o s a l s w h i c h h a v e b e e n c o n s i d e r e d by t h e Ministerial C o m m i t t e e . T h e i m p l e m e n t a t i o n of these p r o p o s a l s requires a Bill, O r d e r s m a d e u n d e r t h e Bill, a n d regulations r e q u i r i n g a n affirmative resolution m a d e o n t h e initiative of t h e N a t i o n a l Assistance B o a r d u n d e r existing p o w e r s . T h e m a i n p u r p o s e of t h e W h i t e P a p e r is t o bring t o g e t h e r i n t o o n e d o c u m e n t a c o m p r e h e n s i v e s u m m a r y of w h a t is p r o p o s e d . 3. It m a y b e helpful if I s u m m a r i s e t h e p r o p o s a l s — (a) I t is p r o p o s e d , subject t o a formal p r o p o s a l being m a d e b y t h e N a t i o n a l Assistance B o a r d at i t s m e e t i n g o n 10th J u n e , t o increase t h e scale rates of n a t i o n a l assistance f r o m 45s. Od. t o 50s. Od. a week for single h o u s e h o l d e r s a n d f r o m 76s. Od. t o 85s. Od. for m a r r i e d couples, w i t h a p p r o p r i a t e increases in t h e o t h e r rates. (b) T h e a m o u n t s of b o t h capital a n d i n c o m e w h i c h t h e N a t i o n a l Assistance B o a r d h a v e to disregard in assessing m e a n s h a v e r e m a i n e d u n c h a n g e d since 1948. It is p r o p o s e d t o t a k e p o w e r t o alter these disregards a n d to m a k e increases in t h e m of t h e o r d e r of 50 p e r cent. (c) I t is p r o p o s e d t o deal w i t h t h e p r o b l e m which n o w arises w h e r e a recipient of n a t i o n a l assistance h a s i n his h o u s e h o l d a n e a r n i n g m e m b e r of his family. A t p r e s e n t t h e B o a r d n o r m a l l y limit t h e a m o u n t a l l o w e d f or r e n t in s u c h cases b y reference t o t h e level of r e n t which, in 1950, their local advisory c o m m i t t e e advised as being n o r m a l in t h e locality. I n addition, they t a k e into a c c o u n t a n a s s u m e d c o n t r i b u t i o n of 7s. Od. a week t o w a r d s the general expenses of t h e h o u s e h o l d in respect of each e a r n i n g m e m b e r . It is p r o p o s e d t h a t t h e B o a r d should n o w n o r m a l l y t a k e a c c o u n t of t h e full r e n t - a s they d o i n o t h e r cases —and s h o u l d s u b s t i t u t e for t h e present flat 7s. Od. a s s u m e d c o n t r i b u t i o n t h e earner's p r o p o r t i o n a t e s h a r e of t h e full r e n t . This, w o u l d b e presented as t h e final abolition of t h e old a s s u m e d c o n t r i b u t i o n t o general h o u s e h o l d expenses a n d t h e i n t r o d u c t i o n of t h e principle t h a t recipients of n a t i o n a l assistance w h o share a h o u s e h o l d w i t h e a r n i n g m e m b e r s of their families should receive their s h a r e of t h e a c t u a l rent. : 4. Subject t o a p p r o v a l b y t h e C a b i n e t of t h e draft s t a t e m e n t a n d W h i t e P a p e r , it is p r o p o s e d t o m a k e t h e o n e a n d publish t h e other o n 15th J u n e . J. A . B . - C . Ministry of Pensions and National Insurance, W.C. 2, 1st June, 1959. 55285 DRAFT STATEMENT I n t h e view of H e r Majesty's G o v e r n m e n t a n d of t h e N a t i o n a l Assistance B o a r d t h e t i m e h a s c o m e to i m p r o v e t h e s t a n d a r d of provision for t h e p o o r e s t m e m b e r s of t h e c o m m u n i t y so as t o give t h e m a s h a r e in t h e c o u n t r y ' s increasing prosperity. Since 1952 t h e B o a r d , w i t h w h o m , as t h e H o u s e k n o w s , t h e initiative in p r o p o s i n g increases in the scale rates of n a t i o n a l assistance h a s b e e n p l a c e d by s t a t u t e , h a s succeeded in c o - o p e r a t i o n w i t h t h e G o v e r n m e n t of t h e d a y in m a i n t a i n i n g t h e scales of assistance at levels s o m e w h a t better t h a n t h o s e originally fixed in 1948. T h a t is t h e position t o - d a y . ' O n t h e o t h e r h a n d , t h e v a r i o u s a m o u n t s of i n c o m e a n d c a p i t a l w h i c h t h e B o a r d are entitled t o disregard in t h e assessment of n e e d — t h e so-called " d i s r e g a r d s " — a r e still a t the l e v e l ' i n ""cash t e r m s at w h i c h t h e y w e r e fixed in 1948. T h e N a t i o n a l A s s i s t a n c e Board h a v e r e c o m m e n d e d a n d t h e G o v e r n m e n t h a v e a c c e p t e d a p r o p o s a l to i n c r e a s e ' t h e scale of assistance for a single h o u s e h o l d e r from t h e p r e s e n t level of 45s. Od. a week t o 50s. Od. a n d for a m a r r i e d c o u p l e f r o m 76s. Od. t b ' 8 5 s . Od. a week, with a p p r o p r i a t e increases in o t h e r r a t e s ; I t is also p r o p o s e d t o m a k e a s u b s t a n t i a l c h a n g e in t h e a r r a n g e m e n t s w h e r e a recipient of n a t i o n a l assistance h a s in his h o u s e h o l d a n e a r n i n g m e m b e r of his family. A t p r e s e n t t h e r e n t t a k e n i n t o a c c o u n t b y t h e Board in these cases is n o r m a l l y t h a t fixed s o m e y e a r s ago o n t h e advice of local advisory c o m m i t t e e s , in m a n y cases less t h a n t h e a c t u a l r e n t . T h e r e is also a c o n t r i b u t i o n of 7s. Od. a w e e k t o w a r d s t h e g e n e r a l expenses of t h e h o u s e h o l d a s s u m e d t o be m a d e b y t h e e a r n i n g m e m b e r . I t is p r o p o s e d in f u t u r e n o r m a l l y to t a k e a c c o u n t of t h e full r e n t , t o a b a n d o n t h e c o n c e p t of an a s s u m e d c o n t r i b u t i o n t o g e n e r a l h o u s e h o l d expenses a n d i n s t e a d t o assess n a t i o n a l assistance o n t h e basis t h a t t h e e a r n i n g m e m b e r ' o f t h e h o u s e h o l d a n d t h e recipient of assistance e a c h c o n t r i b u t e their o w n s h a r e of t h e t o t a l r e n t . It is p r o p o s e d t o m a k e increases in the d i s r e g a r d s of capital, o t h e r t h a n w a r savings, a n d of i n c o m e of the o r d e r of 50 p e r cent. T h e increases in n a t i o n a l assistance will apply generally t o recipients of assistance, including those w h o d r a w it as a s u p p l e m e n t t o r e t i r e m e n t p e n s i o n or t o u n e m p l o y m e n t or o t h e r n a t i o n a l i n s u r a n c e benefits as weli as to t h o s e w h o rely solely o n assistance, either for l o n g or s h o r t p e r i o d s . I t is sometimes suggested t h a t an a p p l i c a t i o n for n a t i o n a l assistance c a n involve s o m e loss of self respect. T h i s is q u i t e w r o n g . T h o s e w h o are in n e e d a r e entitled as of fight to assistance, just as they a n d o t h e r citizens are entitled t o o t h e r State benefits. I t h i n k t h a t h o n . M e m b e r s o n b o t h sides of the House',' a n d p e o p l e outside, will join m e in expressing the h o p e t h a t all t h o s e w h o are in need will m a k e use o f the State p r o v i s i o n to w h i c h they a r e entitled. A s h a s often b e e n e m p h a s i s e d in this H o u s e , there c a n be Complete confidence t h a t t h e N a t i o n a l Assistance B o a r d a n d its officers a d m i n i s t e r this f o r m of social service h u m a n e l y a n d sympathetically. W e are considering w i t h t h e B o a r d w h e t h e r the t e r m i n o l o g y used in O r d e r B o o k s a n d o t h e r d o c u m e n t s c a n b e i m p r o v e d so as' t o o b v i a t e ' a n y possibility of misunderstanding. '' - ' '-' ' " " ' ; 1 : ! Legislation will be n e e d e d t o e n a b l e changes t o b e m a d e in t h o s e d i s r e g a r d s w h i c h are fixed by s t a t u t e , a n d I a m t o - d a y giving' notice of p r e s e n t a t i o n of the necessary Bill. I h a v e also t o - d a y laid the' necessary' regulations t o give effect to the i m p r o v e m e n t s in scale rates a n d o t h e r c h a n g e s . A ' W h i t e P a p e r setting o u t the p r o p o s a l s in full will b e available at the Vote Office at 4 o'clock this afternoon. T h e s e p r o p o s a l s will cost atbout £32 millions in a full y e a r a n d , subject t o the a p p r o v a l of P a r l i a m e n t , it is p r o p o s e d to b r i n g t h e m all i n t o o p e r a t i o n early in September. ; June 1959. T O P SECRET MINISTRY OF PENSIONS A N D NATIONAL INSURANCE Draft White Paper on Proposed Changes in National Assistance Presented to Parliament by the Minister of Pensions and National by Command of Her Majesty lune 1959 LONDON HER MAJESTY'S STATIONERY NET Cmnd. OFFICE Insurance D R A F T W H I T E P A P E R O N P R O P O S E D C H A N G E S IN NATIONAL ASSISTANCE INTRODUCTORY 1. H e r M a j e s t y ' s G o v e r n m e n t a n d t h e N a t i o n a l A s s i s t a n c e B o a r d h a v e b e e n c o n s i d e r i n g t h e p o s i t i o n of t h o s e o n N a t i o n a l A s s i s t a n c e a n d h a v e r e a c h e d t h e c o n c l u s i o n t h a t t h e t i m e h a s c o m e w h e n it is r i g h t t o m o v e t o a h i g h e r s t a n d a r d , s o giving t h e m a s h a r e in i n c r e a s i n g n a t i o n a l p r o s p e r i t y . 2. D r a f t r e g u l a t i o n s h a v e t h e r e f o r e b e e n l a i d b e f o r e P a r l i a m e n t w h i c h p r o v i d e for i n c r e a s i n g t h e scale r a t e s of N a t i o n a l A s s i s t a n c e a n d for c e r t a i n o t h e r c h a n g e s r e l a t i n g t o t h e c o m p u t a t i o n of r e q u i r e m e n t s a n d r e s o u r c e s for National Assistance purposes. A m e m o r a n d u m by the National Assistance B o a r d e x p l a i n i n g t h e s e R e g u l a t i o n s is a n n e x e d . A Bill is also b e i n g p r e s e n t e d f o r t h w i t h t o e m p o w e r t h e M i n i s t e r of P e n s i o n s a n d N a t i o n a l I n s u r a n c e t o i n c r e a s e b y O r d e r t h e a m o u n t s of c a p i t a l a n d c e r t a i n f o r m s of i n c o m e w h i c h t h e B o a r d a r e r e q u i r e d by S t a t u t e t o d i s r e g a r d i n c o m p u t i n g r e s o u r c e s . THE MAIN National Assistance Scale CHANGES Rates 3. H e r M a j e s t y ' s G o v e r n m e n t h a v e a c c e p t e d p r o p o s a l s m a d e by t h e N a t i o n a l A s s i s t a n c e B o a r d , a n d draft R e g u l a t i o n s ( T h e D r a f t N a t i o n a l A s s i s t a n c e ( D e t e r m i n a t i o n of N e e d ) R e g u l a t i o n s ) h a v e i n a c c o r d a n c e w i t h Section 6 of t h e N a t i o n a l A s s i s t a n c e A c t , 1948, b e e n m a d e in t h e f o r m of t h e draft s u b m i t t e d b y t h e B o a r d a n d laid f o r t h e a p p r o v a l of P a r l i a m e n t . These R e g u l a t i o n s p r o p o s e t o i n c r e a s e t h e scale r a t e s of a s s i s t a n c e for a single h o u s e h o l d e r f r o m t h e p r e s e n t 4 5 s . t o 50s. a w e e k , a n d f o r a m a r r i e d c o u p l e f r o m 76s. t o 8 5 s . a w e e k , p l u s in e a c h c a s e a n a l l o w a n c e for r e n t ( i n c l u d i n g r a t e s ) , a n d w i t h a p p r o p r i a t e increases in o t h e r r a t e s of a s s i s t a n c e . T h e p r o ­ p o s a l s a r e e x p l a i n e d in d e t a i l i n t h e a n n e x e d M e m o r a n d u m by t h e N a t i o n a l Assistance Board. Rent and Assumed Contributions 4. A t p r e s e n t w h e r e t h e r e c i p i e n t of a s s i s t a n c e is a h o u s e h o l d e r w h o s e household includes an earning member the Board ordinarily m a k e an a l l o w a n c e for r e n t l i m i t e d b y reference t o w h a t w a s a d v i s e d i n 1950 t o b e t h e g e n e r a l level of r e n t s i n t h e locality. T h e y also t a k e i n t o a c c o u n t a n a s s u m e d c o n t r i b u t i o n t o g e n e r a l h o u s e h o l d e x p e n s e s of 7 s . a w e e k i n r e s p e c t of a n e a r n i n g m e m b e r . I t is p r o p o s e d u n d e r t h e n e w R e g u l a t i o n s t o a b o l i s h t h e p r e s e n t flat-rate 7 s . c o n t r i b u t i o n t o g e n e r a l h o u s e h o l d e x p e n s e s , a n d n o r m a l l y t o a l l o w for t h e full r e n t ; i n f u t u r e r e c i p i e n t s of N a t i o n a l A s s i s t a n c e s h a r i n g t h e i r h o u s e h o l d w i t h e a r n i n g m e m b e r s will n o r m a l l y receive t h e i r p r o p o r t i o n a t e s h a r e of t h e a c t u a l rent, w h i l e e a r n i n g m e m b e r s of t h e h o u s e ­ h o l d will b e a s s u m e d t o c o n t r i b u t e their p r o p o r t i o n a t e s h a r e of t h e r e n t a n d n o t h i n g else. Capital and Income Disregards, T l i e p r o p o s e d Bill will give the M i n i s t e r of P e n s i o n s a n d N a t i o n a l a n c e p o w e r , b y O r d e r , t o i n c r e a s e t h e a m o u n t s of c a p i t a l ( o t h e r t h a n w a r savings) a n d i n c o m e a t p r e s e n t specified in t h e S e c o n d S c h e d u l e to t h e N a t i o n a l A s s i s t a n c e A c t , 1948. A n y O r d e r so m a d e will b e subject t o t h e a p p r o v a l by affirmative r e s o l u t i o n of e a c h H o u s e of P a r l i a m e n t , e x c e p t in t h e c a s e of a n O r d e r m a d e within a m o n t h of t h e p a s s i n g of t h e Bill, w h i c h will b e s u b j e c t t o n e g a t i v e r e s o l u t i o n o n l y . T h i s e x c e p t i o n is to e n a b l e t h e c h a n g e s w h i c h the G o v e r n m e n t p r o p o s e in t h e c a p i t a l a n d i n c o m e d i s r e g a r d s to b e c o m e effective at t h e s a m e t i m e as t h e c h a n g e s i n t h e scale r a t e s of A s s i s t a n c e . O 6. If P a r l i a m e n t a p p r o v e s t h e s e p r o p o s a l s , t h e G o v e r n m e n t i n t e n d t o i n c r e a s e t h e a m o u n t of c a p i t a l a s s e t s (other t h a n w a r savings) w h i c h t h e National Assistance B o a r d are required completely to disregard from £50 to £100, a n d t o r a i s e t h e limit a b o v e w h i c h assistance m a y n o t b e p a i d f r o m £400 to £ 6 0 0 . T h e G o v e r n m e n t a l s o i n t e n d to i n c r e a s e a m o u n t s w h i c h t h e S c h e d u l e r e q u i r e s t h e B o a r d t o d i s r e g a r d out of c e r t a i n specified f o r m s of i n c o m e t o 15s. a w e e k w h e r e 10s. 6d. a w e e k is at p r e s e n t p r e s c r i b e d (for e x a m p l e , for o c c u p a t i o n a l p e n s i o n , o r F r i e n d l y Society o r T r a d e s U n i o n sick p a y ) , a n d t o 30s. a w e e k w h e r e 20s. is n o w p r e s c r i b e d (for e x a m p l e , for a w a r disability o r i n d u s t r i a l injuries d i s a b l e m e n t p e n s i o n ) . 7. A n y O r d e r m a d e u n d e r t h e p o w e r w h i c h is b e i n g s o u g h t t o i n c r e a s e the a m o u n t s of r e s o u r c e s d i s r e g a r d e d u n d e r t h e N a t i o n a l A s s i s t a n c e A c t will also m a k e c o r r e s p o n d i n g i n c r e a s e s for t h e p u r p o s e of t h e d i s r e g a r d s t o b e a p p l i e d in d e c i d i n g a p p l i c a t i o n s for legal aid, in so far as t h e s e a r e g o v e r n e d b y t h e National Assistance Act. Other Matters 8. T h e draft R e g u l a t i o n s s u b m i t t e d by t h e N a t i o n a l A s s i s t a n c e B o a r d also p r o v i d e for increases in t h e a m o u n t to b e d i s r e g a r d e d o u t of e a r n i n g s . COST 9. I t is e s t i m a t e d t h a t t h e cost in a full y e a r of t h e p r o p o s e d increases in the scale r a t e s of N a t i o n a l A s s i s t a n c e will b e a b o u t £ 2 7 m i l l i o n ; t h a t t h e c h a n g e s w h i c h t h e G o v e r n m e n t p r o p o s e to m a k e in t h e a m o u n t s of d i s r e g a r d e d r e s o u r c e s , u n d e r t h e p o w e r s w h i c h w o u l d b e given by t h e Bill, will cost a b o u t £ 2 m i l l i o n in a full y e a r ; a n d t h a t t h e o t h e r c h a n g e s p r o p o s e d in t h e draft R e g u l a t i o n s in r e l a t i o n to e a r n i n g s a n d rent will cost a b o u t £ 3 million in a full y e a r . T h e total cost, in a full y e a r , will, t h e r e f o r e , b e of t h e o r d e r of £32 m i l l i o n . DATE OF OPERATION 10. It is i n t e n d e d t h a t all t h e n e w provisions s h o u l d , subject t o a p p r o v a l of P a r l i a m e n t , c o m e i n t o o p e r a t i o n o n S e p t e m b e r 7, 1959. the EXPLANATORY MEMORANDUM BY THE NATIONAL ASSISTANCE BOARD ON THE DRAFT NATIONAL ASSISTANCE (DETERMINATION OF NEED) REGULATIONS, 1959 1. These Regulations replace with amendments the Regulations under which the officers of the National Assistance Board determine whether a person is in need of an allowance under Part II of the National Assistance Act, 1948, and, if so, how much should be granted. They have been made by the Minister of Pensions and National Insurance in the terms of a draft submitted by the Board and require the approval of each House of Parliament before they can become operative. Subject to such approval, Regulations will be made in the terms of the draft to come into operation on 7th September, 1959. 2. The regulations will replace the regulations of 1957( ) which, by amendment of the regulations of 1948,( ) prescribe the current scale rates which came into force on 27th January, 1958. They will also replace the other provisions of the 1948 regulations, including the amendment made by the regulations of 1952( ) regarding assistance to persons maintained in accommodation provided under Part III of the National Assistance. Act, 1948. The new regulations will thus deal with all the matters which require to be dealt with in regulations made under Section 6 of the Act. 3. The major changes proposed are those in the scales, that is, in the sums prescribed by the Regulations for requirements other than rent and rates, which are allowed for separately. The scales, which came into operation in 1948, have since then been increased six times and more than fully maintain the value of the original scales of 1948. The Board have now, however, thought it right to propose some raising of standards. The scales at present in force and those now proposed are as follows: — 1 2 3 Present rates Ordinary Scale:— (a) For a husband and wife (6) For a person who is living alone, or is a householder and, as such, is directly responsible for rent and household necessaries (c) For any other person, being— (i) aged 21 years or over (ii) aged 18 years or over but less than 21 years ... (iii) aged 16 years or over but less than 18 years ... (iv) aged 11 years or over but less than 16 years ... (v) aged 5 years or over but less than 11 years ... (vi) aged under 5 years 1 New rates s. 76 d. 0 s. 85 d. 0 45 0 50 0 41 31 26 20 17 14 0 6 0 0 0 6 46 36 30 23 19 16 0 0 0 0 0 0 C ) The National Assistance (Determination of Need) Amendment Regulations, 1957 (S I 1957/2072). " ( ) The National Assistance (Determination of Need) Regulations, 1948 (S.I. 1948/1334). ( ) The National Assistance (Determination of Need) Amendment Regulations, 1952 (S.I. 1952/873). 2 3 T h e r a t e s in a special scale a p p l i c a b l e t o blind p e r s o n s a n d p e r s o n s w h o ha$i%ifFered a loss of i n c o m e in o r d e r t o u n d e r g o t r e a t m e n t for t u b e r c u l o s i s of tire r e s p i r a t o r y s y s t e m , will a l s o b e increased a s f o l l o w s : — New rates Present rates Special Scale:— (a) For a husband and wife— (i) of whom one is such a person (ii) of whom both are such persons (b) For any other such person, being— (i) aged 21 years or over (ii) aged 18 years or over but less than 21 years ... (iii) aged 16 years or over but less than 18 years ... s. d. s. d. 96 110 0 0 107 122 6 6 65 48 40 0 6 0 72 55 45 6 0 0 4. T h e effect of t h e p r o p o s a l s r e g a r d i n g scale rates is t o increase t h e o r d i n a r y s c a l e r a t e f o r a m a r r i e d c o u p l e b y 9s. a n d for a single a d u l t b y 5 s . T h e i n c r e a s e s for o t h e r p e r s o n s i n c l u d i n g d e p e n d e n t c h i l d r e n v a r y a c c o r d i n g t o a g e . F o r e x a m p l e , u n d e r t h e o r d i n a r y scale a m a r r i e d c o u p l e w i t h t h r e e c h i l d r e n a g e d 12, 8 a n d 3 y e a r s p a y i n g a r e n t of 15s. a w e e k c o u l d a t p r e s e n t e x p e c t t o h a v e their i n c o m e , i n c l u d i n g family allowances, m a d e u p t o a t l e a s t £7 2 s . 6d. a week. U n d e r t h e Regulations n o w put forward they could expect t o h a v e t h e i r i n c o m e m a d e u p t o a t least £ 7 18s. Od., an i n c r e a s e of 15s. 6d. T h e c o r r e s p o n d i n g figure u n d e r t h e R e g u l a t i o n s of 1948 w o u l d h a v e b e e n £4 2s. a week. 5 . T h e special scale f o r b l i n d a n d for certain t u b e r c u l o u s p e r s o n s is b e i n g i n c r e a s e d b y r a t h e r m o r e t h a n t h e o r d i n a r y s c a l e : in the s p e c i a l scale r a t e s w h i c h a p p l y m o s t often t h e excess o v e r t h e c o r r e s p o n d i n g r a t e s in t h e o r d i n a r y s c a l e , n o w 2 0 s . , will b e c o m e 2 2 s . 6 d . F o r e x a m p l e , the r e q u i r e m e n t s of a b l i n d m a n w i t h a sighted wife p a y i n g a r e n t of 15s. a week will b e assessed at £ 6 2 s . 6 d . a week, c o m p a r e d w i t h £ 5 if b o t h p a r t n e r s w e r e s i g h t e d . 6. A s s i s t a n c e h a s s o m e t i m e s t o b e fixed b y reference t o c o n s i d e r a t i o n s w h i c h m a k e t h e scale r a t e s i n a p p l i c a b l e o r i n a p p r o p r i a t e a n d w h e n this is s o t h e a p p l i c a n t ^ i n c o m e m a y b e i n c r e a s e d b y less t h a n t h e n o r m a l a m o u n t ; t h u s i n t h e c a s e of p e r s o n s p a y i n g a n inclusive c h a r g e f o r b o a r d i n g a n d l o d g i n g d i s c r e t i o n h a s t o b e e x e r c i s e d t o g r a n t assistance a t a r a t e w h i c h leaves a r e a s o n a b l e a m o u n t f o r o t h e r e x p e n s e s after meeting t h e inclusive c h a r g e . 7. A p a r t from t h e c h a n g e s in t h e scales a n d w i t h t w o o t h e r e x c e p t i o n s m e n t i o n e d b e l o w , t h e draft R e g u l a t i o n s r e p r o d u c e i n s u b s t a n c e t h e p r o v i s i o n s of t h e 1948 R e g u l a t i o n s (including t h e a m e n d m e n t referred t o in p a r a g r a p h 2) a n d of P a r t 1 of t h e S c h e d u l e t o t h o s e R e g u l a t i o n s w h i c h p r e s c r i b e s rules f o r t h e c o m p u t a t i o n of r e q u i r e m e n t s , i n c l u d i n g t h e a l l o w a n c e s t o b e m a d e for r e n t . T h e e x c e p t i o n s a r e as follows : — (1) in c o n n e c t i o n with t h e c h a n g e referred to i n p a r a g r a p h 8 (2), t h e r e f e r e n c e t o " t h e g e n e r a l level of r e n t s in t h e locality " in t h e p a r a g r a p h a b o u t r e n t a l l o w a n c e s in P a r t 1 of t h e Schedule is o m i t t e d , a n d (2) t h e m a x i m u m a m o u n t w h i c h m a y b e paid u n d e r t h a t p a r a g r a p h b y w a y of r e n t a l l o w a n c e t o a p e r s o n living as a m e m b e r of s o m e o n e else's h o u s e h o l d i s r a i s e d f r o m 10s. t o 15s. A s a m a t t e r of f o r m , t h e effect of Section 5 (4) of t h e N a t i o n a l A s s i s t a n c e A c t , w h i c h r e q u i r e s t h e R e g u l a t i o n s to p r o v i d e for t h e rules as t o difT^rard laid d o w n in t h e s e c o n d S c h e d u l e to t h e A c t t o be followed in compusffi^ t h e r e s o u r c e s of a n a p p l i c a n t , is n o w a c h i e v e d b y a p r o v i s i o n ( R e g u l a t i o n 2) in t h e b o d y of t h e R e g u l a t i o n s . 8. A s a result of t h e c h a n g e in R e g u l a t i o n 2 m e n t i o n e d a b o v e , t h e s t a t u t o r y d i s r e g a r d s a r e n o t r e p e a t e d in P a r t I I of t h e S c h e d u l e t o t h e R e g u l a t i o n s , w h i c h c o n t a i n s rules for c o m p u t i n g r e s o u r c e s n o t l a i d d o w n in detail in t h e A c t . T h e r e m a i n i n g p r o v i s i o n s of P a r t I I differ f r o m t h e c o r r e s p o n d i n g p r o v i s i o n s of t h e 1948 R e g u l a t i o n s in t h e following r e s p e c t s : — (1) C h a n g e s a r e m a d e in t h e p r o v i s i o n s r e l a t i n g t o t h e t r e a t m e n t of e a r n i n g s b y a p e r s o n receiving a s s i s t a n c e , o r by a d e p e n d a n t of s u c h a p e r s o n . A m i n i m u m of 30s. a w e e k t o g e t h e r w i t h half of t h e n e x t 20s. of a n y e a r n i n g s a b o v e t h a t a m o u n t is s u b s t i t u t e d for t h e s u m of 20s. w h i c h m a y a t p r e s e n t b e d i s r e g a r d e d o u t of t h e e a r n i n g s of o l d p e o p l e a n d o t h e r s n o t r e q u i r e d t o register for e m p l o y m e n t ; t h e s u m of 15s. a w e e k is s u b s t i t u t e d for t h e 10s. w h i c h m a y a t p r e s e n t b e d i s r e g a r d e d in t h e c a s e of a p e r s o n r e q u i r e d t o register for e m p l o y m e n t ; a n d t h e s u m of 15s. is s u b s t i t u t e d for t h e p r o p o r t i o n of o n e - t h i r d of t h e e a r n i n g s of a d e p e n d a n t a g e d u n d e r 16, w h i c h will h a v e t h e effect of i n c r e a s i n g t h e a m o u n t t o b e d i s r e g a r d e d o u t of a n y e a r n i n g s b y a dependent child before they are taken into account against the a l l o w a n c e m a d e for h i m . (2) C o n t r i b u t i o n s t o h o u s e h o l d e x p e n s e s a r e a s s u m e d t o b e m a d e by n o n - d e p e n d e n t m e m b e r s of t h e h o u s e h o l d of a p e r s o n ( o t h e r t h a n a b l i n d p e r s o n o r t h e h u s b a n d or wife of a blind p e r s o n ) receiving assistance. A t p r e s e n t a s u m of 7 s . (with a b a t e m e n t s for m e m b e r s e a r n i n g s m a l l a m o u n t s ) is t a k e n i n t o a c c o u n t w h a t e v e r t h e r e n t p a i d b y t h e h o u s e h o l d e r . T h i s p r o v i s i o n is r e p l a c e d by a p r o v i s i o n for a n a s s u m e d c o n t r i b u t i o n n o t e x c e e d i n g a p r o p o r t i o n a t e s h a r e of t h e r e n t . T h e a l l o w a n c e m a d e for r e n t in s u c h cases will t h e n o r d i n a r i l y b e t h e full a m o u n t of t h e n e t r e n t p a i d by t h e h o u s e h o l d e r a n d t h e fixing of a " r e a s o n a b l e r e n t " by r e f e r e n c e t o t h e g e n e r a l level of r e n t s in t h e locality will n o l o n g e r be necessary. 9. T h e d i s c r e t i o n a r y p o w e r s w h i c h f o r m a n i m p o r t a n t p a r t of t h e R e g u l a t i o n s will c o n t i n u e t o be e x e r c i s e d in a n y c a s e w h e r e special c i r c u m s t a n c e s so r e q u i r e . I n t h e exercise of their g e n e r a l d i s c r e t i o n a r y p o w e r s t h e B o a r d p r o p o s e , h a v i n g r e g a r d t o t h e increases p r o p o s e d b y t h e G o v e r n m e n t in t h e a m o u n t s w h i c h t h e S e c o n d S c h e d u l e to t h e N a t i o n a l A s s i s t a n c e A c t r e q u i r e s t o b e d i s r e g a r d e d f r o m c e r t a i n f o r m s of i n c o m e , t o i n c r e a s e c o r r e s p o n d i n g l y f r o m 10s. 6d. a w e e k t o 15s. t h e a m o u n t o r d i n a r i l y d i s r e g a r d e d f r o m c e r t a i n o t h e r f o r m s of i n c o m e i n c l u d i n g v o l u n t a r y a l l o w a n c e s f r o m friends or r e l a t i v e s a n d p a y m e n t s f r o m charities o r b e n e v o l e n t associations. National Assistance Board, June, 1959. 55279 Wt. / K 6/59 F.O.P. Printed and published by HER MAJESTY'S STATIONERY OFFICE To be purchased from York House, Kingsway, London w.c.2 423 Oxford Street, London w.l 13A Castle Street, Edinburgh 2 109 St. Mary Street, Cardiff 39 King Street, Manchester 2 Tower Lane, Bristol 1 2 Edmund Street, Birmingham 3 80 Chichester Street, Belfast or through any bookseller Printed in Great Britain