I move:—
That a sum not exceeding £340,000 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1956, for the Salaries and Expenses of the Office of the Minister for Social Welfare.
There are three Estimates for my Department. The first one, that for the Office of the Minister for Social Welfare, deals with salaries and other administration expenses. The second, the Estimate for social insurance, provides for the Exchequer contribution in connection with insurance benefits, and the third, the Estimate for social assistance, provides the amounts required to pay old age and blind pensions, widows' and orphans' non-contributory pensions, unemployment assistance, children's allowances and certain other services such as school meals and blind welfare. The net total of the three Estimates is £20,855,500. I should mention that the estimated cost of the increases in the rates of old age and blind pensions and widows' non-contributory pensions, operative from the 29th July, is not included in these Estimates. Provision will be made for these increases in a Supplementary Estimate which will be introduced before the end of the financial year.
The net amount of the Estimate for the Office of the Minister for Social Welfare is £510,000. This is a decrease of £13,050 as compared with the net provision in last year's Vote. The decrease is mainly due to an increase in Appropriations-in-Aid in respect of costs of administration of the insurance scheme which are recoverable from the Social Insurance Fund.
Deputies may remember that when I was introducing this Estimate last year I was able to point to a reduction in the amount required for salaries of £24,347 and a reduction in the number of staff of no fewer than 144. In the Estimate for the preceding year, 1953-54 the cost of salaries was reduced by £21,308 and the number of staff by 90. In view of these reductions in cost and number of staff and others which have been made since the setting up of my Department in 1947, there is not now the same scope for economy as there formerly was. Nevertheless there has been in this year's Estimate a small further reduction of six in the number of staff employed in the Department and the pursuit of economy in administration goes on continuously.
There is a decrease of £34,000 in the Estimate of £2,764,000 for Social Insurance as compared with the Vote for the previous year. This is mainly attributable to a reduction of £30,000 in the provision for payment to the Social Insurance Fund. This payment represents the amount by which the income of the fund is estimated to fall short of its expenditure in 1955-56.
It is estimated that the cost in the current financial year of the various insurance benefits and of their administration will be £8,373,000 approximately. This is made up as follows:—
£ |
|
Disability Benefit |
3,042,000 |
Unemployment Benefit |
2,373,000 |
Widows' and Orphans' Contributory Pensions |
1,491,000 |
Treatment Benefits |
229,000 |
Maternity Benefits |
110,000 |
Marriage Grant |
77,000 |
Administration Costs |
1,051,000 |
The income of the fund in 1955-56 is estimated at £5,641,000 made up as follows:—Income from contributions, £5,106,000; income from investments, £535,000. The difference between the expenditure figure of £8,373,000 and the income figure of £5,641,000 is £2,732,000 to which £2,000 has to be added as the amount due from the Exchequer in respect of late payments under the former insurance schemes.
The figures I have just quoted differ only slightly from the corresponding figures of actual expenditure and income in the year ending 31st March, 1955, and it is expected that it will in future be possible to estimate fairly accurately the amount required under this Vote to balance the expenditure and income of the Social Insurance Fund. This was not possible in the first years of the fund's existence owing to the radical changes effected by the Social Welfare Act, 1952.
The net provision for social assistance, estimated at £17,581,500, is £213,900 less than the corresponding provision for last year. This is mainly due to a reduction of £339,000 in the Estimate for unemployment assistance offset by increases in the Estimates for children's allowances, widows' and orphans' non-contributory pensions and other services. The provisions in this Estimate for old age pensions and widows' and orphans' non-contributory pensions do not cover the cost of the increases in these pensions from the 29th July. This extra cost will, as I stated earlier, be provided for by a Supplementary Estimate.
The decrease of £339,000 in the provision for unemployment assistance as compared with the Vote for last year is attributable in part to the downward trend in the numbers on the live register and in part to the fact that the amount estimated for unemployment assistance in 1954-55 exceeded the amount required by £285,000. This excess was mainly due to the fact that persons who had hitherto relied on employment assistance qualified to an unexpected and unforeseeable extent for unemployment benefit under the Social Welfare Act, 1952. In consequence expenditure on unemployment benefit was higher last year than had been expected, while, as I have stated, expenditure on unemployment assistance was less than expected. In this connection Deputies will remember that agricultural workers who formerly had to depend on unemployment assistance when unemployed became entitled under the Social Welfare Act, 1952, to unemployment benefit.
The increase of £120,000 in the provision for children's allowance is due to a continuing rise in the number of children eligible for allowances under the scheme.