I move:—
That a supplementary sum not exceeding £496,900 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1949, for Old Age Pensions and Pensions to Blind Persons (Old Age Pensions Acts, 1908 to 1948): for Supplements and for Allowances in Kind (No. 22 of 1946); and for certain Grants.
This Supplementary Estimate is rendered necessary in the main by the provisions of Part II of the Social Welfare Act, 1948, under which not only were pensions increased but, in addition, the means test was so modified that there were additional applicants for old age pensions; many persons not previously entitled to qualify for old age pensions now have an opportunity of qualifying under the provisions of the 1948 Act. Broadly, the effect of the Act has been that approximately 102,000 persons who were previously in receipt of the normal maximum rate of pension of 12/6 per week are now receiving an old age pension of 17/6 per week.
Approximately 25,000 persons whose maximum rate of pension was 15/- per week have had that pension increased to 17/6 per week. In addition, some portion of this increased Estimate is rendered necessary by reason of an abnormal increase in the number of persons seeking old age and blind pensions. The number in that respect increased during the year from ordinary causes, and the increase is due to the fact that, not merely had we a greater number of old age pensioners and blind pensioners in December than was estimated for during the year, but because the number of deaths of old age pensioners and blind pensioners during that period was apparently substantially less than in previous years. A number of new applications which will be made under the Social Welfare Act are at present being investigated by local committees or are under consideration either by social welfare officers or by my Department. It is not possible at this stage to give precise particulars as to the number of new applicants for such pensions, but it may be assumed that the number of new applicants will represent a substantial number of new claims. The Estimate, in the main, is a normal consequence of the enactment of the Social Welfare Act, 1948.