This Bill is mainly concerned with the grant of increases in disablement pensions and wound gratuities, and in certain allowances and gratuities to dependents of deceased persons, payable under the Army Pensions Acts, 1923 to 1953. The increases are effective from 1st August, 1956, and in fact are being paid since that date on the authority of a Supplementary Estimate for pensions approved on the 25th July, 1956. This Bill provides the necessary statutory authority for them. The scale of increases is the same as that applied to other classes of State pensions by the Pensions (Increase) Act of 1956 and ranges from 15 per cent. on pensions not exceeding £100 to 6 per cent. on pensions of £450 or over.
Pensions of £450 or more are being increased for the first time under this measure. Under previous legislation which granted increases, a pension or aggregate of pensions which amounted to £450 or more got no increase. Moreover, in the case of a pension or aggregate of pensions so near to £450 that the grant of the appropriate increase would bring the amount above that figure, the increase was limited to such amount as would bring the pension or aggregate to £450 and no more. That restriction is not repeated in this measure, with the result that pensions of £450 or more will receive an increase of 6 per cent. However, the increases apply to the pensions as payable under the previous Acts, so that the effects of the previous ceiling must be taken into account before the rates of increases now authorised are applied. This position is achieved by Sections 27, 28 and 29 of the Bill.
Married pensions, that is pensions payable to married men in addition to basic disablement pension, are being increased by a flat 35 per cent. instead of the 25 per cent. authorised in the Army Pensions Act of 1953. These married pensions vary in such a way that it is not practicable without creating anomalies to include them in the scale of increases which apply to the basic pensions.
Gratuities payable in respect of wounds, and gratuities to widows and other dependents of deceased persons to whom the Acts apply, are being increased by approximately 75 per cent. These gratuities have not been increased hitherto and the percentage increases now being authorised are therefore higher than those applicable to the pensions and allowances. Certain educational allowances which were not previously increased are now being increased as well. The foregoing matters are dealt with in Part II of the Bill.
The estimated total annual cost of the increases provided for is £23,330 and the necessary provision has been made in the Army Pensions Estimate for the current year.
Part III of the Bill contains some miscellaneous amendments to which I shall now refer. Sections 31 and 39 amend the Acts by relieving the Minister for Finance of certain functions which he exercises in relation to the making of grants of pension and other matters. At present the consent of the Minister for Finance must be obtained before a grant of pension, allowance or gratuity is made under the terms of the Acts. The amendments embodied in Sections 31 and 39 will remove the necessity for such consent and in future grants will be made solely by the Minister for Defence. A similar measure in respect of awards of service pension under the Defence Forces (Pensions) Acts to former members of the Permanent Defence Force was recently passed in this House. That measure, and these amendments now, are part of a general development between my Department and the Department of Finance, aimed at improving administration by removing requirements which are not really essential from an Exchequer point of view but which involve time and administrative procedures which would not otherwise be necessary. I am, of course, bound by the terms of the Acts and the interests of the Exchequer will in no way be adversely affected. On the contrary, official time will be saved and more expeditious clearance of cases as they arise will be possible.
Section 32 provides a new scale of percentages of pay for calculation of pension in the case of an officer of the Permanent Defence Force who retires on or after the date of the passing of the Bill and who may qualify for a pension under the 1923 Act, i.e. in respect of a wound received before 1st October, 1923. This arises from the introduction of consolidated pay for officers and follows what was done in the 1953 Act in relation to other pensions.
Sections 33, 36 and 38 deal with certain aspects of special allowances. The latest date at present laid down for an application for a service medal which, if granted, renders a person qualified to apply for a special allowance, is 5th August, 1954, i.e., 12 months after the date of the passing of the Army Pensions Act, 1953. Section 36 moves forward that date to one not later than 12 months after the date of the passing of this Bill. Since the last closing date, viz., 5th August, 1954, over 3,000 applications for such medals have been received by my Department and these will be validated by this section in so far as the time limit for application is concerned and no renewal of such applications will be necessary.
Section 33 deals with the position which arises when, in the case of a person already in receipt of a special allowance, his entitlement to the medal on which his eligibility for the special allowance is based, is impugned by later evidence. If, in such a case, I cease to be satisfied that the medal was duly awarded, then the special allowance is of course stopped. This section gives me clear-cut legal power for that step and it also enables me to restore the special allowance if further later evidence should substantiate the original claim to the medal. The section operates as from the date of the passing of the 1945 Army Pensions Act, which introduced the service medal as a qualification for a special allowance.
Section 38 also deals with special allowances and makes two changes. It removes the obligation placed by Section 43 of the Army Pensions Act of 1953 on a special allowance holder, to notify any improvement in his means since they were last investigated on my behalf. Experience of the operation of that section since it was introduced has shown that for legal and practical reasons it has been largely inoperative, so that its removal is desirable. In future, the normal departmental investigation will be relied upon to bring any improvement in means to notice and I am satisfied that this is the most practical way to meet the situation. The other change effected by Section 38 of the Bill is that, in effect, it applies the terms of Section 50 of the Army Pensions Act, 1937, to prosecutions. This provides that a prosecution for an offence under the section may be brought within six months after the date when the evidence to sustain the prosecution came to the notice of the Minister for Defence.
Sections 34 and 35 relate to allowances payable under Part II of the 1953 Act in respect of certain deceased persons who had pre-Truce service. Section 34 gives power to the Minister for Finance to review and alter an opinion reached by him in certain cases and to grant an allowance if he should be of opinion that the applicant should be treated as a dependent of the deceased. Section 35 extends the time limit laid down in Section 6 of the Act of 1953 for applications where an applicant died before a decision was reached on his claim and where another relative then wished to apply. The position in this respect at present is that the second relative might be ruled out under the existing time limit before in fact he would be aware of his eligibility to apply.
Section 37 arises primarily as a consequence of the amendments in Sections 31 and 39 which do away with the necessity for the consent of the Minister for Finance to the grant of, among other things, a gratuity to a relative of a person who dies in certain circumstances before an award of a pension, allowance or gratuity is made to him. Section 12 of the Act of 1949 and Section 44 of the Act of 1953 are repealed, but the new section adapts their provisions to the new circumstances and also extends the benefit of the earlier provisions to the case of a disablement pensioner who dies after the expiry of one award and before a further award has been made. In such a case a gratuity equal to the amount of the pension which would have been due to the date of death will, as a result of this new section, be payable to any of the relatives mentioned in the section. The section becomes effective as from the 1st November, 1955.
The foregoing is an outline of what is contained in this measure. If there are any further points on which information is required I shall endeavour to deal with them when I am concluding.