CP(73) 52
COPY
6 NO
8
4 A p r i l 1973
CABINET
THE 1973 REVIEW OF SOCIAL SECURITY B E N E F I T S A N D ASSOCIATED CHANGES: D R A F T WHITE P A P E R N o t e b y t h e S e c r e t a r y of S t a t e f o r S o c i a l S e r v i c e s
1.
I a m c i r c u l a t i n g f o r i n f o r m a t i o n t h e t e x t of t h e W h i t e P a p e r
w h i c h , s u b j e c t t o a n y final drafting c h a n g e s , I p r o p o s e to p u b l i s h w i t h
the f o r t h c o m i n g Uprating B i l l (probably i n the w e e k beginning
16 A p r i l ) .
2.
T h e W h i t e P a p e i d e t a i l s t h e p r o p o s e d h i g h e r r a t e s of s o c i a l
s e c u r i t y b e n e f i t s a n d c o n t r i b u t i o n s , a n d g i v e s a f a c t u a l a c c o u n t of t h e
o t h e r c h a n g e s w h i c h w e r e o u t l i n e d i n m y s t a t e m e n t to the H o u s e on
7 March.
It w i l l b e a c c o m p a n i e d b y t h e u s u a l R e p o r t b y t h e G o v e r n m e n t
A c t u a r y o n t h e F i n a n c i a l P r o v i s i o n s of t h e 3 i l l .
3.
T h e m a i n i n c r e a s e s of b e n e f i t s a n d c o n t r i b u t i o n s w e r e a u t h o r i s e d
b y t h e C a b i n e t i n i t s e n d o r s e m e n t of t h e C h a n c e l l o r s B u d g e t p r o p o s a l s .
T h e c h a n g e s in the m i n o r r a t e s w e r e c o n s e q u e n t i a l and b r o a d l y
p r o p o r t i o n a t e and w e r e s e t t l e d w i t h the T r e a s u r y .
The p r o p o s a l for a
further change in the F a m i l y Income Supplement w a s c l e a r e d by the
H o m e and S o c i a l A f f a i r s C o m m i t t e e .
K J
D e p a r t m e n t of H e a l t h a n d S o c i a l S e c u r i t y
4 A p r i l 1973
THE 1973
REVIEW OF SOCIAL SECURITY BENEFITS AND ASSOCIATED CHANGES
PART I .
1.
INTRODUCTION
The Government
are today introducing
in n a t i o n a l
insurance,
l a s t month;
parallel
industrial
instruments.
required
finance
2.
injuries
them w i l l
take effect
w i l l be increased by l a r g e r
unemployment b e n e f i t ,
In addition
to
the general increase
improvements which w i l l b e n e f i t
The i n v a l i d i t y a l l o w a n c e ,
and w h i c h i s
from
widows'
injury benefit
mainly the
sick,
of
t h e new r a t e s
against
long-term addition.
w i l l b e r a i s e d b y 50p
be h i g h e r i n c r e a s e s ,
a week f o r
in steps of
T h e maximum w e e k l y b e n e f i t
or more
3.
the
finance
­
allowance.
include
three
supplement,
selective
families.
1971
is
to
be
the s p e c i a l heating needs
As from 1 O c t o b e r
Commission f o r
w i t h up to
instead
four
with
of being
children,
five
w i l l b e i n c r e a s e d f r o m £5 t o £6
of
all
extra heating will
for
levels
and t h e r e
or more
be
offset
family income supplement income
for families
the higher national
The f l a t - r a t e
employer's
for
50p,
long-term
the National Insurance Act
supplementary benefit
families
October.
t h e o l d and low i n c o m e
supplementary b e n e f i t .
Thirdly,
contributions
will
children.
families
with
three
children.
To h e l p
go u p .
of
in
and m a t e r n i t y
the Government's proposals
amounts a w a r d e d b y t h e S u p p l e m e n t a r y B e n e f i t s
the
and o t h e r
under
the short-term benefits
A second change concerns
p a i d on t o p
increases
announced
and t h e i n c r e a s e s
benefits
which was i n t r o d u c e d i n
old p e o p l e and o t h e r s r e c e i v i n g
the
also be provided
paid with i n v a l i d i t y pension or unemployability
substantially increased.
to
t h e week b e g i n n i n g 1
amounts than
sickness benefit,
effect
and s u p p l e m e n t a r y b e n e f i t s
The i n c r e a s e s i n b e n e f i t s
Retirement and i n v a l i d i t y pensions,
benefits
to give
improvements i n war p e n s i o n s w i l l
appropriate
to
a Bill
share
contributions
insurance benefits
contributions
of employed p e r s o n s w i l l be r e d u c e d b u t
of those c o n t r i b u t i o n s w i l l
self-employed
graduated
and non-employed w i l l
1 be i n c r e a s e d .
also be
raised.
Flat-rate
the
contributions
will
PART I I
NATIONAL INSURANCE BENEFITS
The b e n e f i t
4.
increases
The s t a n d a r d w e e k l y r a t e s o f f l a t - r a t e unemployment and s i c k n e s s b e n e f i t
will
be i n c r e a s e d from £ 6 . 7 5 t o £ 7 . 3 5 f o r a s i n g l e p e r s o n and from £10.90 t o £11.90
for a m a r r i e d c o u p l e .
£7.35.
M a t e r n i t y a l l o w a n c e w i l l a l s o b e i n c r e a s e d from £ 6 . 7 5 t o
Dependency i n c r e a s e s f o r c h i l d r e n p a y a b l e w i t h t h e s e b e n e f i t s w i l l b e
i n c r e a s e d from £2.10 t o £ 2 . 3 0 f o r t h e f i r s t c h i l d w i t h c o r r e s p o n d i n g s m a l l e r amounts
for o t h e r c h i l d r e n f o r whom f a m i l y a l l o w a n c e s a r e n o r m a l l y p a y a b l e .
5.
The s t a n d a r d w e e k l y r a t e s o f f l a t - r a t e r e t i r e m e n t , i n v a l i d i t y and widows'
pension w i l l b e i n c r e a s e d from £ 6 . 7 5 t o £ 7 . 7 5 f o r a s i n g l e p e r s o n and from £10.90
to £12.50 f o r a married c o u p l e .
The c h i l d r e n o f widows and o f i n v a l i d i t y and
r e t i r e m e n t p e n s i o n e r s a t t r a c t a s p e c i a l l y h i g h r a t e , a t p r e s e n t £3.30
(including
family a l l o w a n c e s where t h e s e a r e p a y a b l e ) and t h i s w i l l go up t o £ 3 . 8 0 .
The
weekly r a t e o f g u a r d i a n ' s a l l o w a n c e and c h i l d ' s s p e c i a l a l l o w a n c e w i l l a l s o b e
r a i s e d from £ 3 . 3 0 t o £ 3 . 8 0 .
6.
The w e e k l y r a t e o f o l d p e r s o n ' s p e n s i o n p a y a b l e under t h e p r o v i s i o n s o f t h e
1970 and 1971 N a t i o n a l I n s u r a n c e A c t s w i l l b e i n c r e a s e d from £ 4 . 0 5 t o £ 4 . 6 5 .
The
weekly r a t e f o r a m a r r i e d woman, a t p r e s e n t £ 2 . 5 0 , w i l l go up t o £ 2 . 8 5 .
7.
The w e e k l y r a t e s o f widow's b a s i c p e n s i o n and c o n t r i b u t o r y o l d a g e p e n s i o n
payable t o c e r t a i n widows under t h e former C o n t r i b u t o r y P e n s i o n s A c t s a r e t o b e
i n c r e a s e d from £ 2 . 0 3 t o £ 2 . 3 3 .
8.
R a t e s o f i n v a l i d i t y a l l o w a n c e w i l l go up p r o p o r t i o n a t e l y more than o t h e r
benefits.
The i n c r e a s e s a r e o f 40 p e r c e n t - t h e h i g h e s t r a t e o f £ 1 . 1 5 i s
increased
to £1.60 and t h e two l o w e r r a t e s o f 70p and 35p go up t o £ 1 and 50p r e s p e c t i v e l y .
9.
A t t e n d a n c e a l l o w a n c e a t t h e day and n i g h t r a t e w i l l go up from £ 5 . 4 0 t o £6.20.J
and t h e day o r n i g h t r a t e which f i r s t becomes p a y a b l e i n June a t t h e r a t e o f £3.60
w i l l go up t o £ 4 . 1 5 .
10.
D e t a i l s o f t h e e x i s t i n g and p r o p o s e d new r a t e s o f r e t i r e m e n t p e n s i o n and o t h e r
n a t i o n a l i n s u r a n c e b e n e f i t s a r e g i v e n i n Appendix I .
Corresponding improvements
w i l l b e made i n p e n s i o n s and b e n e f i t s p a y a b l e a t l e s s than t h e s t a n d a r d r a t e s .
Earnings-related
11.
supplement
The upper l i m i t
on t h e band o f w e e k l y e a r n i n g s on which
earnings-related
supplement i s t o be p a i d a t 15 p e r c e n t w i l l b e i n c r e a s e d from £48 t o £54 i n l i n e
with t h e new upper l i m i t f o r g r a d u a t e d c o n t r i b u t i o n s ( s e e paragraph 2 4 ) .
This
supplement i s p a i d w i t h f l a t - r a t e b e n e f i t d u r i n g t h e f i r s t s i x months o f unemploy­
:r.ent, s i c k n e s s o r widowhood.
The new l i m i t w i l l t a k e e f f e c t i n t h e a s s e s s o r '
of supplements b a s e d on e a r n i n g s i n t h e 1974/75 income t a x
year.
PART I I I
INDUSTRIAL INJURIES
12.
The w e e k l y r a t e s o f i n j u r y b e n e f i t w i l l be i n c r e a s e d from £ 9 . 5 0 t o £10.10
for a s i n g l e p e r s o n and from £13.65 t o £ 1 4 . 6 5 f o r a marr;'.ed c o u p l e .
The p e n s i o n
for an a s s e s s m e n t o f 100 p e r c e n t d i s a b l e m e n t w i l l b e i n c r e a s e d from £11.20 t o
C12.80, w i t h p r o p o r t i o n a t e i n c r e a s e s i n t h e r a t e s f o r lo?/er a s s e s s m e n t s .
The
maximum g r a t u i t y ( f o r a s s e s s m e n t below 20 p e r c e n t ) w i l l b e r a i s e d from £740 t o
£85O.
The r a t e s o f a l l t h e a l l o w a n c e s p a i d w i t h d i s a b l e m e n t b e n e f i t w i l l
be i n c r e a s e d .
to £ 8 . 3 0 .
also
The p e n s i o n f o r widows, w h i c h i s a t p r e s e n t £ 7 . 3 0 , w i l l be r a i s e d
Further d e t a i l s o f the i n d u s t r i a l i n j u r i e s b e n e f i t s are given i n
Appendix I I .
PART IV
WAR PENSIONS
Disablement p e n s i o n e r s
13.
The 100 p e r c e n t r a t e o f d i s a b l e m e n t p e n s i o n f o r a p r i v a t e w i l l go up from
£11.20 t o £ 1 2 . 8 0 , w i t h p r o p o r t i o n a t e i n c r e a s e s f o r l o w e r a s s e s s m e n t s ;
r a t e s w i l l be s i m i l a r l y i n c r e a s e d .
disablement are being r a i s e d .
officers
1
A l l t h e supplementary a l l o w a n c e s a s s o c i a t e d w i t h
Those b e n e f i t s i n c r e a s e d l a s t y e a r w i l l go up by
the same p r o p o r t i o n a s t h e b a s i c p e n s i o n , w h i l s t comforts a l l o w a n c e , p a i d w i t h
u n e m p l o y a b i l i t y supplement and c o n s t a n t a t t e n d a n c e a l l o w a n c e , and s e v e r e
disablement
o c c u p a t i o n a l a l l o w a n c e , b o t h o f which were l a s t r a i s e d i n 1971, w i l l go up by 30 p e r
cent.
14.
There w i l l a l s o b e a f u r t h e r i n c r e a s e i n t h e annual r a t e o f c l o t h i n g a l l o w a n c e .
Two o t h e r changes w i l l b e n e f i t d i s a b l e m e n t p e n s i o n e r s .
The number o f r a t e s
of c o n s t a n t a t t e n d a n c e a l l o w a n c e i s t o b e r e d u c e d from 5 t o 4 b y t h e a b o l i t i o n o f
the t h r e e - q u a r t e r day r a t e .
Those war p e n s i o n e r s r e c e i v i n g t h i s r a t e w i l l
get t h e normal maximum r a t e , g i v i n g them an i n c r e a s e o f £ 1 . 7 5 a week.
i t h a s been d e c i d e d t h a t t h e r e s h o u l d b e no r e d u c t i o n i n n a t i o n a l
instead
Secondly,
insurance
dependency b e n e f i t s or i n t h e dependency b e n e f i t s p a i d w i t h u n e m p l o y a b i l i t y
supplement t o t a k e a c c o u n t o f t h e a l l o w a n c e s f o r a w i f e and
basic disablement p e n s i o n s .
children paid with
I n f u t u r e a man w i l l r e c e i v e t h e f u l l
insurance
b e n e f i t s f o r h i s w i f e and c h i l d r e n r e g a r d l e s s o f t h e s m a l l dependency a l l o w a n c e s
3
(maximum 50p f o r a w i f e and
37ih? f o r a c h i l d ) p a i d w i t h h i s war p e n s i o n .
change v d l i be o f g r e a t e s t v a l u e t o t h o s e men w i t h f a m i l i e s who a r e
The
severely
d i s a b l e d - t h e u n e m p l o y a b l e war p e n s i o n e r who i s married w i t h two c h i l d r e n
will,
f o r i n s t a n c e , g e t an e x t r a £1.25
those
a s a r e s u l t o f t h i s change a l o n e - w h i l s t
who have a l l o w a n c e s a t l o w e r r a t e s w i l l no l o n g e r hage t h e d e d u c t i o n s o f s m a l l
sums from t h e i r b e n e f i t s which a r e c u r r e n t l y made.
will also
An a d m i n i s t r a t i v e
saving
result.
'.7ar widows
15.
The s t a n d a r d r a t e o f war p e n s i o n f o r t h e widow o f a p r i v a t e s o l d i e r w i l l b e
i n c r e a s e d from £ 8 . 8 0 t o £10.10 a week, w h i l s t t h e p e n s i o n s f o r widows o f n o n ­
commissioned, warrant and commissioned o f f i c e r s w i l l b e s i m i l a r l y
increased.
The magi mum r a t e o f r e n t a l l o w a n c e , p a y a b l e t o a widow w i t h d e p e n d e n t c h i l d r e n ,
i s b e i n g r a i s e d b y 5Op t o
l a s t r a i s e d i n 1971,
£3.90, w h i l s t t h e a g e a l l o w a n c e s f o r e l d e r l y widows,
go up b y 30 p e r c e n t from 5Q£ t o 65p f o r t h o s e b e t w e e n 65
and 70 and from £1 t o £1.30
l6.
for those over
70.
Under c h a n g e s i n t r o d u c e d i n 1971 war widows
1
p e n s i o n and a l l o w a n c e s a r e
p a i d i r r e s p e c t i v e o f t h e c a u s e o f d e a t h t o a widow whose war - d i s a b l e d husband was
r e c e i v i n g c o n s t a n t a t t e n d a n c e a l l o w a n c e a t t h e normal maximum or a h i g h e r r a t e .
The s u b s t i t u t i o n o f t h e normal maximum r a t e f o r t h e t h r e e - q u a r t e r
day-rate
d e s c r i b e d i n p a r a g r a p h 14 w i l l i n c r e a s e t h e number o f c a s e s where a war w i d o w ' s
p e n s i o n i s awarded a u t o m a t i c a l l y on t h e d e a t h o f t h e p e n s i o n e r .
Table o f r a t e s
17.
D e t a i l s o f t h e c h a n g e s i n t h e main r a t e s o f war p e n s i o n s and a l l o w a n c e s
are
g i v e n i n Appendix I I I .
PART V
SUPPLEMENTARY BENEFITS
The s c a l e r a t e s and t h e l o n g - t e r m a d d i t i o n
18.
The Government a l s o p r o p o s e t o r a i s e s u p p l e m e n t a r y b e n e f i t l e v e l s .
of £1 f o r a s i n g l e h o u s e h o l d e r and £1,60
Increases
f o r a married c o u p l e , as i n t h e standard r a t
of r e t i r e m e n t p e n s i o n s and o t h e r l o n g - t e r m n a t i o n a l i n s u r a n c e b e n e f i t s , w i l l
go t o s u p p l e m e n t a r y p e n s i o n e r s a n d , w i t h t h e e x c e p t i o n o f t h o s e r e q u i r e d t o
also
register
f o r work, t o p e o p l e under p e n s i o n age who have r e c e i v e d s u p p l e m e n t a r y b e n e f i t
two y e a r s o r more.
Other s u p p l e m e n t a r y b e n e f i t
-
r a t e s w i l l go up by 60p
for
for a p e r s o n l i v i n g a l o n e , and b y £ 1 f o r a married c o u p l e , i n l i n e w i t h t h e i n c r e a s e s
in t h e s h o r t - t e r m n a t i o n a l i n s u r a n c e b e n e f i t s .
I n c r e a s e s proportionate to the l o n g ­
term and s h o r t - t e r m s u p p l e m e n t a r y b e n e f i t i n c r e a s e s w i l l be made i n t h e r a t e f o r n o n ­
n o u s e h o l d e r s , and c h i l d r e n ' s r a t e s w i l l be i n c r e a s e d i n p r o p o r t i o n t o t h e s h o r t - t e r m
increases.
19.
The l o n g - t e r r a a d d i t i o n - which d a t e s from t h e i n c e p t i o n o f t h e s u p p l e m e n t a r y
b e n e f i t s scheme i n I966 - i s i n t e n d e d t o p r o v i d e f o r e x t r a e x p e n s e s o f t h e k i n d which
nay b e e x p e c t e d t o a r i s e i n l o n g - t e r m c a s e s .
I t i s proposed t o incorporate
this
a d d i t i o n , o f 60p f o r t h o s e under t h e age o f 80 and o f 85p f o r t h o s e o v e r 80 i n t o new
long-term r a t e s .
A t p r e s e n t , fjOp o f t h e l o n g - t e r m a d d i t i o n o f 60p (75p o f t h e r a t e
for t h o s e o v e r 80) i s n o r m a l l y taken i n t o a c c o u n t when f u r t h e r a d d i t i o n s f o r e x c e p t i o n a l
expenses a r e b e i n g c o n s i d e r e d .
S i m i l a r l y , 50p o f t h e new l o n g - t e r m r a t e s (75p o f t h e
r a t e s f o r t h o s e o v e r 8 0 ) w i l l b e r e q u i r e d t o b e t r e a t e d a s m e e t i n g any e x c e p t i o n a l
e x p e n s e s j b u t s e e paragraph 21 f o r e x c e p t i o n a l h e a t i n g e x p e n s e s .
The c o n s o l i d a t i o n o f
the l o n g - t e r m a d d i t i o n i s c o n s i d e r e d n e c e s s a r y i n order t o e n a b l e t h e d i f f e r e n t i a l
i n c r e a s e s i n l o n g - t e r m c a s e s t o b e r e f l e c t e d f u l l y and e f f e c t i v e l y i n t h e s u p p l e m e n t a r y
o e n e f i t s scheme and b e c a u s e t h e purpose and o p e r a t i o n o f t h e l o n g - t e r m a d d i t i o n , a s a
s e p a r a t e e l e m e n t , h a s i n any e v e n t g i v e n r i s e t o c o n f u s i o n and m i s u n d e r s t a n d i n g .
The Government t h e r e f o r e hope t h a t t h e r e s t r u c t u r i n g i n v o l v e d w i l l make t h e scheme
easier f o r people to understand,
20.
A s u p p l e m e n t a r y p e n s i o n e r l i v i n g a l o n e who i s now e n t i t l e d t o £ 7 . 1 5 a week p l u s
r e n t and r a t e s w i l l become e n t i t l e d t o £ 8 . 1 5 a week p l u s r e n t and r a t e s , or £ 8 . 4 0 a
week p l u s r e n t and r a t e s i f he or s h e i s o v e r 8 0 .
A supplementary pensioner couple
now e n t i t l e d t o £ 1 1 . 2 5 a week p l u s r e n t and r a t e s w i l l become e n t i t l e d t o £ 1 2 . 8 5 a
v/eek p l u s r e n t and r a t e s , o r £13.10 p l u s r e n t and r a t e s i f one ( o r b o t h ) o f them i s
over 8 0 .
Extra h e a t i n g
21.
expenses
As from 1 O c t o b e r any e x t r a a l l o w a n c e s on a c c o u n t o f e x c e p t i o n a l h e a t i n g
made under t h e Supplementary B e n e f i t s
expenses
Commission's d i s c r e t i o n a r y powers f o r p e n s i o n e r s
and o t h e r s e n t i t l e d t o t h e new l o n g - t e r m .
r a t e s w i l l b e p a i d on t o p o f t h e s e new
r a t e s , i n s t e a d o f b e i n g o f f s e t a g a i n s t t h a t p a r t o f them which i s a v a i l a b l e t o meet
e x c e p t i o n a l e x p e n s e s ( s e e paragraph 1 9 ) .
Thus s u p p l e m e n t a r y b e n e f i t r e c i p i e n t s w i l l b e
e n t i t l e d t o t h e f u l l amount o f any a d d i t i o n a l h e a t i n g a l l o w a n c e s awarded b e c a u s e o f
their individual
circumstances.
Table o f r a t e s
22.
D e t a i l s o f t h e s u p p l e m e n t a r y b e n e f i t i n c r e a s e s a r e g i v e n i n Appendix I V .
PART yi
CONTRIBUTION CHANCES
23.
The Government p r o p o s e t o meet t h e c o s t o f t h e improvements i n t h e b e n e f i t s
p a y a b l e from t h e N a t i o n a l I n s u r a n c e Funds m a i n l y b y i n c r e a s i n g t h e g r a d u a t e d
c o n t r i b u t i o n s p a i d on e a r n i n g s o f more than £9 a week and b y r a i s i n g t h e
5
flat-rate
contributions paid by employers.
T h i s l a t t e r change c o n t i n u e s t h e p r o c e s s
begun l a s t y e a r o f p l a c i n g a h i g h e r p r o p o r t i o n o f t h e t o t a l c o n t r i b u t i o n on
employers, i n preparation f o r the c o n t r i b u t i o n changes envisaged i n t h e S o c i a l
S e c u r i t y B i l l now b e f o r e P a r l i a m e n t .
Graduated
24.
contributions
The w e e k l y e a r n i n g s l i m i t up t o which g r a d u a t e d c o n t r i b u t i o n s a r e p a i d i s
t o be r a i s e d from £ 4 8 t o £ 5 4 and t h e
r a t e o f graduated c o n t r i b u t i o n s f o r
employers and employees w i l l b e i n c r e a s e d b y 5 p e r c e n t .
P e r s o n s who a r e
c o n t r a c t e d o u t w i l l t h e r e f o r e pay c o n t r i b u t i o n s o f 5 p e r c e n t on e a r n i n g s between
£9 and £ 1 8 a week and o f 5 V
er
c e n t on e a r n i n g s b e t w e e n £ 1 8 and £54 a w e e k ,
w h i l e t h o s e n o t c o n t r a c t e d o u t w i l l p a y a t t h e r a t e o f 5 p e r c e n t on e a r n i n g s
between £9 and £54 a w e e k .
The a d d i t i o n a l c o n t r i b u t i o n s w i l l earn c o r r e s p o n d i n g
graduated pension r i g h t s .
25.
The e m p l o y e r " s s h a r e o f t h e f l a t - r a t e c o n t r i b u t i o n w i l l b e i n c r e a s e d b y 14p
a week f o r a man, 12p f o r a woman, 7p f o r a b o y and 6p f o r a g i r l .
1
e m p l o y e e s s h a r e o f t h e c o n t r i b u t i o n w i l l b e r e d u c e d by 4 p .
The a d u l t
The e a r n i n g s
t h r e s h o l d a t w h i c h c o n t r i b u t i o n s n o r m a l l y become p a y a b l e w i l l b e r a i s e d from £Jo
to £ 7 .
26.
I n c r e a s e s a r e a l s o t o be made i n t h e f l a t - r a t e c o n t r i b u t i o n s o f
self-employed
and n o n - e m p l o y e d p e r s o n s , who do n o t p a y g r a d u a t e d c o n t r i b u t i o n s , s o a s t o e n s u r e
t h a t t h e y p a y t h e i r f a i r s h a r e o f t h e c o s t o f improved b e n e f i t s .
Self-employed
men w i l l p a y an e x t r a 25p a week and women an-, e x t r a 21p.
F o r t h e non-employed
t h e i n c r e a s e s w i l l be 19p f o r a man and 15p f o r a woman.
There a r e p r o p o r t i o n a t e
i n c r e a s e s f o r s e l f - e m p l o y e d and non-employed j u v e n i l e s .
which s e l f - e m p l o y e d p e r s o n s
1
r a i s e d from £ 5 t o £ 6 a week.
The e a r n i n g s l e v e l a t
c o n t r i b u t i o n s n o r m a l l y become p a y a b l e w i l l b e
At p r e s e n t s e l f - e m p l o y e d o r non-employed p e r s o n s
w i t h an income o f £468 a y e a r o r l e s s can o b t a i n e x c e p t i o n from t h e l i a b i l i t y t o
pay c o n t r i b u t i o n s .
T h i s l i m i t i s b e i n g r a i s e d t o £520 a y e a r .
Industrial injuries
contributions
27.
The c o s t o f i n d u s t r i a l i n j u r i e s b e n e f i t s i s met by f l a t - r a t e
industrial
i n j u r i e s c o n t r i b u t i o n s which a r e u s u a l l y p a y a b l e a s p a r t o f t h e combined n a t i o n a l
insurance c o n t r i b u t i o n s .
1
2p o f t h e i n c r e a s e i n t h e employer s s h a r e o f t h e f l a t ­
rate contributions for adults i s for industrial injuries purposes.
RISTRICTED The new c o n t r i b u t i o n
28.
rates
Examples o f t h e e f f e c t s o f the p r o p o s e d c o n t r i b u t i o n changes on t h e w e e k l y
amounts p a y a b l e by employed men and women, and t h e i r e m p l o y e r s , a r e s e t out i n
appendix V, T a b l e A .
flat-rate
T a b l e B o f t h a t Appendix shows t h e p r o p o s e d main r a t e s o f
c o n t r i b u t i o n s f o r employed, s e l f - e m p l o y e d and non-employed p e r s o n s .
PART VII
COSTS
29.
The c o s t o f t h e p r o p o s e d changes w i l l be a b o u t
About £ 4 8 0 m i l l i o n - i n c l u d i n g
£570 m i l l i o n i n 197-V75.
£370 m i l l i o n f o r r e t i r e m e n t p e n s i o n s - w i l l be
paid o u t o f t h e N a t i o n a l I n s u r a n c e Fund, and £ 1 8 m i l l i o n out of t h e I n d u s t r i a l
I n j u r i e s Fund.
The r e m a i n i n g c o s t w i l l be met from t h e C o n s o l i d a t e d Fund:-
m i l l i o n f o r u p r a t i n g and improving s u p p l e m e n t a r y b e n e f i t j
a d d i t i o n a l e x p e n d i t u r e on war p e n s i o n s ;
pensions;
£21 m i l l i o n
£39
for
£3 m i l l i o n f o r u p r a t i n g o l d p e r s o n s
1
. £9 m i l l i o n f o r u p r a t i n g a t t e n d a n c e a l l o w a n c e ; and about £ 1 m i l l i o n
f o r f a m i l y income s u p p l e m e n t .
The Exchequer c o n t r i b u t i o n t o t h e N a t i o n a l I n s u r a n c e
Funds w i l l a l s o be i n c r e a s e d s o as t o m a i n t a i n t h e t o t a l Exchequer s u p p o r t t o t h e
n a t i o n a l i n s u r a n c e schemes a t about 18 p e r c e n t o f c o n t r i b u t i o n i n c o m e .
7
RESTRICTED
APPENDIX I
MAIN INCREASED NATIONAL INSURANCE BENEFIT RATES
Proposed
Weekly
Rate
£
Existing
Rate
£
Standard r a t e o f i n v a l i d i t y , widows" and r e t i r e m e n t
p e n s i o n s , and widowed m o t h e r s ' a l l o w a n c e s
Single person . . .
...
Wife o r o t h e r a d u l t dependant
7.75*
4-75*
Standard r a t e o f unemployment and s i c k n e s s
benefits
Single person . . .
...
Wife o r o t h e r a d u l t dependant
Married woman (normal r a t e )
P e r s o n s u n d e r 18
7.35
4-55
5.15
4.05
6.75
4.15
4-75
3.70
7.55
6.75
4.55
4.15
10.85
9.45
2.35
2.03
1.60
1.00
0.50
1.15
0.70
0.35
6.20
5.40
3.60
Standard r a t e o f M a t e r n i t y a l l o w a n c e
A d u l t dependant
...
Widow's a l l o w a n c e ( f i r s t
Widow's b a s i c p e n s i o n
6.75*
4.15*
26 weeks o f widowhood)
...
I n v a l i d i t y allowance payable with i n v a l i d i t y pension,
when i n c a p a c i t y began b e f o r e a g e
^5
45
9 9 9
9 9 9
9 9 9
9 9 9
***
***
m * m
***
*mm
***
9 9 9
9 m 9
m 9 9
m %.m
60 f o r men o r 55 f o r women
Attendance a l l o w a n c e
-
Higher r a t e
Lower r a t e
4.15
Old p e r s o n s ' p e n s i o n s ( p e n s i o n s f o r c e r t a i n p e r s o n s o v e r 80)
1*1 XX 0
9 9 9
9 9 9
Any o t h e r p e r s o n
Guardian's allowance
...
2.85*
4.65*
2.50*
4.05*
...
3.80
5.50
5.80
3.30
2.40
2.30
* * *
9 9 9
9 9 9
9 9 9
9 9 9
C h i l d ' s s p e c i a l a l l o w a n c e and i n c r e a s e s f o r c h i l d r e n o f
widows, i n v a l i d i t y and r e t i r e m e n t p e n s i o n e r s
First child
...
Second c h i l d * * . . .
Any o t h e r c h i l d * *
...
...
...
...
...
...
...
...
...
...
...
...
2.90
2.80
Increases for children of a l l other
First child
...
Second c h i l d ^ * . . .
Any o t h e r c h i l d * *
...
...
beneficiaries
...
...
...
...
...
...
...
...
...
*
I f t h e p e n s i o n e r o r dependant i s 80 o r o v e r an a g e a d d i t i o n o f
payable.
**
F a m i l y a l l o w a n c e s a r e p a y a b l e f o r s e c o n d and s u b s e q u e n t
RESTRICTED
2.10
2.30
1.40
1.30
1.20
1.10
25p i s
children
also
APPENDIX I I
IIAHT INCREASED
INDUSTRIAL INJURIES BENEFIT RATES
Proposed
WeeklyRate
Existing
Rate
£
Injury b e n e f i t
Disablement b e n e f i t
(100 p e r c e n t a s s e s s m e n t )
...
10.10 *
9.50
12.80 *
11.20
U n e m p l o y a b i l i t y supplement
7-75 **
6.75
S p e c i a l h a r d s h i p a l l o w a n c e (maximum)
5.12
4-48
C o n s t a n t a t t e n d a n c e a l l o w a n c e (normal maximum)
5-15
4.50
Exceptionally severe disablement
5.15
4.50
10.85
9.45
Widow's p e n s i o n now p a y a b l e a t £7.30 r a t e
8.30
7.30
Widow's p e n s i o n now p a y a b l e a t £ 2 . 0 3 r a t e
2.35
2.03
A l l o w a n c e f o r f i r s t o r o n l y c h i l d o f widow
3.80
5.50
A l l o w a n c e f o r s e c o n d c h i l d o f widow . . .
2.90
2.40
Allowance f o r widow's o t h e r
2.80
2.30
8.30
7.50
Wife o r o t h e r a d u l t d e p e n d a n t
4-55
4.15
F i r s t or only child
2.30
2.10
Industrial death
allowance...
benefit
Widow's p e n s i o n d u r i n g f i r s t 26 weeks o f widowhood
children...
Widower's p e n s i o n
I n c r e a s e s f o r d e p e n d a n t s (where p a y a b l e )
Second c h i l d . . .
...
...
...
...
...
..
1.40
1.20
Any o t h e r c h i l d
...
...
...
...
...
..
1.30
1.10
4.70
4.10
12.80
11.20
A l l o w a n c e s u n d e r t h e I n d u s t r i a l I n j u r i e s and D i s e a s e s
(Old C a s e s ) A c t 1967
Workmen's Compensation $ r u p p l e m e n t a t i o n )
Scheme.
L e s s e r i n c a p a c i t y a l l o w a n c e (maximum)
Liajor i n c a p a c i t y a l l o w a n c e b r i n g i n g workmen's
compensation and/or b a s i c allowances under t h e
Act U T ) t o . . .
. . .
. . .
. . .
. . .
. . .
. i
Pneumoconiosis, B y s s i n o s i s
B e n e f i t Scheme
Proposed
Weekly
Rate
Existing
Rate
4.70
4.10
and M i s c e l l a n e o u s D i s e a s e s
Allowance f o r t h e p a r t i a l l y d i s a b l e d . . ,
...
Allowance f o r t h e t o t a l l y d i s a b l e d
* I n c r e a s e s w i l l a l s o b e made i n t h e j u v e n i l e
...
12.80
11.20
rates.
/ Rates f o r lower a s s e s s m e n t s w i l l be i n c r e a s e d p r o p o r t i o n a t e l y .
For a s s e s s m e n t s
oelow 20 p e r c e n t f o r which a g r a t u i t y i s n o r m a l l y p a y a b l e , t h e maximum g r a t u i t y i s
r a i s e d from £740 t o £ 8 5 0 .
*-* I n v a l i d i t y a l l o w a n c e s and i n c r e a s e s f o r a d u l t d e p e n d a n t s and c h i l d r e n w i l l be
p a i d a s t o i n v a l i d i t y p e n s i o n e r s - s e e N a t i o n a l I n s u r a n c e t a b l e (Appendix l )
0
APPENDIX III
MAIN INCREASED WAR PENSIONS RATES
A l l ranks receive the same increases, officers' rates being expressed in pounds
per annum. PART 1
DISABLEMENT BENEFITS
Proposed
Weekly
Rate
£
12.80
Disablement pension for private at 100 per cent rate ..
Existing
Rate
£
11.20
Unemployability allowances * Personal allowance Increase for wife or adult dependant 8.40 4.75 7.35
4.15
2.20 1.10
1.70
0.85
5.12
4.48
10.30
2.60
9.00
6.75
4.50
2.25
0.60 0.55
Comforts allowance Higher rate Lower rate Allowance for lowered standard of occupation (liiajdmum) Constant attendance allowance -f
Special maximum Special intermediate Normal maximum Half and quarter day 7.75 5.15 Age allowance with assessments of 40 and 50 per cent 60 and 70 per cent 80 and 90 per cent 100 per cent 0.90 1.30 0.80
1.80 1.15
1.60
Exceptionally severe disablement allowance 5.15 4.50
Severe disablement occupational allowance 2.60 2.00
Clothing allowance Proposed Annual Rate 22
14
8
High Intermediate Low 19 12 7
* Invalidity allowances and the higher rates of children s allowances will be paid as to invalidity pensioners - see National Insurance table (Appendix I). 8
-f The three-quarter day allowance (existing rate of £3^40) will be abolished:
those receiving it will become entitled to the new normal maximum rate.
RESTRICTED APPENDIX I? MAIN INCREASED SUPPLEMENTARY BENEFIT RATES Proposed
Ordinary
Weekly
Rate
Ordinary scale
Husband and wife
Person living alone
...
...
Not less than 18
Less than 18 but not less
Less than 16 but not less
Less than 13 but not less
Less than 11 but not less
Less than 5
than
than
than
than
Proposed
Long-Term
Weekly
Rate * Existing
Rate
£
e
£
11.65
7.15
12.85
8.15
10.65
6.55
5.70
4.40
3.70
3.00
2.45
2.05
6.60
-
5.20
4.05
5.40
2.75
2.25
1.90
12.90
13.70
14.10
14.90
11.90
12.70
8.4O
5*30
3.70
3*00
2.45
2.05
9.40
"
7.80
4.95
3.40
2.75
* 5
1*90
0.80
-
0.70
6.20
4.15
-
5*40
3*60
Any other person aged 16
13
11
5
Blind scale Husband and wife If one of them is blind
If both of them are blind
Any other blind person aged Not less than 18
Less than 18 but not
Less than 16 but not
Less than 13 but not
Less than 11 but not
Less than 5
Non-householder rent allowance
less
less
less
less
than
than
than
than
16
13
11
5
*
2
2
Attendance requirements Higher rate
Lower rate
* These f i g u r e s i n c o r p o r a t e i n each c a s e t h e p r e s e n t " l o n g - t e r m a d d i t i o n " o f
60p.
Where t h e c l a i m a n t or a dependant i s aged 80 or o v e r a f u r t h e r 25p i s
t o b e added t o t h e s e l o n g - t e r m r a t e s .
APPENDIX IY MAIN INCREASED SDPPLEMENTAHY BENEFIT RATES Proposed
Ordinary
Weekly
Bate
£
Proposed
Long-Term
Weekly
Bate * £
Existing
Rate
£
Ordinary scale
Husband and wife
Person living alone
11.65
7*15
12.85
8.15
10.65
6.55
5.70
4*40
3.70
3*00
2.45
2.05
6.60
-
5.20
4.05
3-40
2.75
2.25
1*90
12.90
13.70
14.10
14.90
11.90
12.70
8.40
5.30
3*70
5.00
2.45
2.05
9.40
-
7.80
4*95
3.40
2.75
2.25
1.30
0.80
-
0.70
6.20
4*15
-
5*40
3*60
Any other person aged
Not less than 18
Less than 18 but
Less than 16 but
Less than 13 but
Less than 11 but
Less than 5
not
not
not
not
less
less
less
less
than
than
than
than
16
13
11
5
...
Blind scale Husband and wife If one of them is blind
If both of them are blind
Any other blind person aged Not less than 18
Less than 18 but not less
Less than 16 but not less
Less than 13 but not less
Less than 11 but not less
Less than 5
than
than
than
than
16
13
11
5
Non-householder rent allowance
Attendance requirements Higher rate
Lower rate
...
...
...
...
...
...
1
* These f i g u r e s i n c o r p o r a t e i n each case the p r e s e n t long-term a d d i t i o n ' o f
60p.
Y/here t h e c l a i m a n t o r a dependant i s aged 80 or o v e r a f u r t h e r 25p i s
t o b e added t o t h e s e l o n g - t e r m r a t e s .
TABLE
A
EXAMPLES OP THE EFFECT OF THE CONTRIBUTION CHANGES ON THE CONTRIBUTIONS PAYABLE BY EMPLOYED PERSONS AND THEIR EMPLOYERS * EMPLOYER
EMPLOYED PERSON
Change
New Rate
Present Rate
Flat
Bate
Graduated
Total
Flat
Rate
Graduated
Total
£
£
£
£
£
£
0.06
O.69
1.44
1.87
1.02
1.65
2.40
2.85
Change
New Rate
Present Rate
Flat
Rate
Graduated
Total
Flat
flate
Graduated
Total
£
£
£
£
£
£
£
-0.02
+0.01
+0.05
40.36
1.107
1.107
1.107
1.107
0.04
0.^4.
1.35
1.47
1.147
1.747
2.457
2.577
1.247
1.247
1.247
1.247
0.06
.06
0.69
1.44
1.87
1.50
1.5077
1.957
2.687
3.117
4 or -
£
Class 1
Employed Man
Contracted Out
Earning
Earnings
s
£15
£50
£45
£54
-i
n
1.00
1.00
1.00
1.00
0.04
0.64
1.55
1.47
1.04
1.64
2.55
2.47
O.96
O.96
O.96
O.96
+0.16
+0.19
+0.23
+0.54
Earning
Earnings
s
-4
m
O
£15
£50
£45
£54
0.88
0.88
0.88
0.88
O.50
1.02
1.75
1.85
1.18
1.90
2.61
2.73
0.84
0.84
0.84
0.84
0.51
1.07
1.82
2.25
1.15
1.91
2.66
3.09
-0.03
+0.01
+0.05
+O.36
0.987
0.987
0.987
0.987
0.30
1.02
1.73
1.85
1.287
2.007
2.717
2.857
1.127
1.127
1.127
1.127
O .31
.3 1
1.07
1.82
2.25
1.437
1.43 7
2.197
2.947
3-377
+0.15
+0.19
+0.23
+0.54
£15
£50
£45
£54
0.85
0.85
0.85
0.85
0.04
0.64
1.55
1.47
0.87
1.47
2.18
2.50
0.79
0.79
0.79
0.79
0.06
0.69
1.44
1.87
0.85
1.48
2.25
2.66
-0.02
+0.01
+0.05
+O.56
0.941
0.941
0.941
0.941
0.04
0.64
1.35
1.47
0.981
1.581
2.291
2.411
1.061
1.06 1
1.061
1.061
1.061
0.06
0.69
1.44
1.87
1.121
1.751
2.501
2.931
+0.14
+0.17
+0.21
+0.52
0.75
0.75
0.75
0.75
0.50
1.02
1.75
1.85
1.05
1.77
2.48
2.60
0.71
0.71
0.71
0.71
0.51
1.07
1.82
2.25
1.02
1.78
2.53
2.96
-0.03
+0.01
+0.05
+O.56
0.86
0.8611
0.861
0.861
0.861
0.50
1.02
1.75
1.85
1.16
1.1611
1.881
2.591
2.711
0.981
0.981
0.981
0.981
0.51
1.07
1.82
2.25
1.29
1.2911
2.051
2.801
3.231
+0.13
+0.17
+0.21
+0.52
Employed Woman
Contracted Out
Earning
Earnings
s
Not Contracted Out
Earning
Earnings
s
£15
£50
£45
£54
73
m
Not Contracted Out
-"-Including industrial injuries and national health service contributions but excluding Redundancy Fund contributions
(£O.O65 man, £ 0 . 0 2 9 woman). For full details of the new flat-rate contributions see Table B: for graduated
contributions see paragraph 24 .
f/i
73
o
H
m
U
TABLE B MAIN NEW WEEKLY RATES OF FLAT-RATE CONTRIBUTIONS
( E x i s t i n g r a t e s a r e shown i n i t a l i c s where changed)
1 - EMPLOYED PERSONS (OTHER THAN THOSE CONTRACTED OUT OF THE GRADUATED SCHEME)
N a t i o n a l Insurance
Employed
Person
Employer
£
£
Industrial Injuries
Insurance
Insuranc e
Employed
Person
Employer
£
£
National Health
Service
Employed
Employer
Person
£
£
Redundancy
Fund
(Employer
only)
Combined C o n t r i b u t i o n s
Employed
Person
Employer
£
£
£
Total
£
Men over 18
0.632
(0.672)
0.954
(0.834)
0.05
0.09
(0.07)
0.158
0.083
O.O63
0.84
(0.88)
1.19
(1.05*)
2.03
(1.93)
Women over 18
0.545
(0.585)
0.828
(0.728)
0.04
0.07
(0.05)
0.125
0.083
0.029
0.71
(0.75)
1.01
(0.89*)
1.72
(1.64)
Boys under 18
0.461
0.647
(0.587)
0.03
0.04
(0.03)
0,079
0.083
0.57
0.77^
(0.70*)
1.34
(1.27)
%
H
G i r l s under 18
0.381
0.557
(0.497)
0.02
0.03
0.079
0.083
0.48
0.67
(0.61*)
1.15
(1.09)
m
2 ­ EMPLOYED PERSONS CONTRACTED OUT OF THE GRADUATED SCHEME
N a t i o n a l Insurance
Employed
Person
Employer
Industrial Injuries
Insurance
Employed
Person
Employer
National Health
Service
Employed
Employer
Person
Redundancy
Fund
(Employer
only)
Combined C o n t r i b u t i o n s
Employed
Person
Employer
Total
Men c o n t r a c t e d out
0.752
(0.792)
1.074
(0.954)
0.05
0.09
(0.07)
0.158
0.083
0.063
0.96
(1.00)
1.31
(1.17*)
2.27
(2.17)
Women c o n t r a c t e d out
0.625
(0.665)
0.908
(0.808)
0.04
0.07
(0.05)
0.125
0.083
0.029
0.79
(0.83)
1.09
(0.97*)
1.88
(1.80)
* P r i o r t o 2nd A p r i l 1973 t h e e m p l o y e r ' s c o n t r i b u t i o n i n c l u d e d a d d i t i o n a l l y S e l e c t i v e Employment
Tax amounting t o £ 1 . 2 0 ( m a n ) , £ 0 . 6 0 (woman), £0.60 (boy) and £0.40 ( g i r l ) .
q
APPENDIX V TABLE B (Continued) 3 - SELF-EMPLOYED PERSONS
National
Insurance
£
1
£
National
Health
Service
£
Total
Combined
Contribution
£
£
Men over 18
1.763
(1.513)
0.167
1.93
(1.68)
Women over 18
1.477
(1.267)
0.133
1.61
(1.4D)
Boys under 18
1.002
0.088
1.09
(0.95)
Girls under 18
0.842
(0.862)
(0.722
0.088
0.93
(0.81)
4 - NON-EMPLOYED PERSONS
National
Health
Service
National
Insurance
£
£
£
Total Combined Contribution £
£
Men over 18
1.353
(1.163)
0.167
1.52
(1.33)
Women over 18
1.057
(0.907)
0.133
1.19
(1.04)
Boys under 18
0,772
(0.662)
0.088
0.86
(0.75)
G-irls under 18
0,612
(0.522)
0.088
0.70
(0.61)
PART 2
DEATH BENEFITS
Proposed
Weekly
Rate £
Existing
Rate
10.10
8.80
2.33
2.03
3.90
3.40
O.65
0.50
1.30
1.00
... 10.10
8.80
4.00
3*50
3*85
3*50
3*00
3'35
Under 15 ) Eldest child or other children
Over 15 ) with no family allowances
( 4.00
( 5*50
3.50
5.00
Under 15 ) Other children with
Over 15 ) family allowances
(3*50
( 5.00
3.00
4*50
7*75
6.75
£
1
Widow's pension - private s widow
Standard rate
...
...
...
Childless widow under 40
Rent allowance
...
Age allowance for elderly widowe
Between age 65 and 70
Over age 70
1
Widower s pension
Widow's children
Eldest child
...
Other children with family allowances
Other children without family allowances
Motherless and fatherless children aged
Adult orphans
...
...
Department o f H e a l t h and S o c i a l
London SE1
30 March 1973
...
Security
...