I move:—
That a sum not exceeding £579,550 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending 31st day of March, 1951, for Wound and Disability Pensions, Further Pensions and Married Pensions, Allowances and Gratuities (No. 26 of 1923, No. 12 of 1927, No. 24 of 1932, No. 15 of 1937, No. 2 of 1941, No. 14 of 1943, No. 3 of 1946, and Nos. 19 and 28 of 1949); Military Service Pensions, Allowances and Gratuities (No. 48 of 1924, No. 26 of 1932, No. 43 of 1934, No. 33 of 1938, No. 5 of 1944, Nos. 11 and 34 of 1945, and Nos. 7 and 29 of 1949); Pensions, Allowances and Gratuities (No. 37 of 1936, and No. 9 of 1948); Payments in respect of Compensation for Members of the Local Defence Force (No. 19 of 1946 and No. 15 of 1949); and for sundry Contributions and Expenses in respect thereof, etc.
The total of £869,320 for the Army Pensions Vote is roughly made up as follows:—Cost of pensions, allowances and gratuities, £848,336; cost of administration, £8,820; cost of incidentals, £12,164; total, £869,320.
The pensions, allowances and gratuities comprise 18,377 awards already made during the past 27 years, amounting to £823,477 and about 1,486 new awards which it is expected will be made before 31st March, 1951, and which are estimated to cost about £64,976. Twelve months hence, therefore, there is expected to be about 19,863 awards at a gross cost of £888,453. If, however, allowances be made for the cessation of certain pensions through death, etc. at £10,696 and for abatements at £29,421, the net cost will be £848,336. Included in this amount is a sum of £9,574 for gratuities and £3,360 for arrears, so that the recurring charge on the Exchequer will be, approximately, £835,402 a year.
Incidental expenses at £8,820 include £500 for surgical and medical appliances, £1,250 for the treatment in St. Bricin's hospital of temporary pensioners; £5,000 for the expenses of applicants for pensions and special allowances attending before the Army Pensions Board, and the expenses of witnesses called before the Referee in connection with military service pensions, and £2,070 for various odds and ends but especially for the fees of local pensions medical officers to expedite the work of determining claims for pensions and allowances.
Administration expenses at £12,164 refer exclusively to the salaries and allowances of the two statutory bodies, the Army Pensions Board for the Army Pensions Acts and the Referee and advisory committee, for the Military Service Pensions Acts. As regards the latter it will take some time to sift the chaff from the grain, and to determine what petitions merit a hearing. The estimate, however, for military service pensions provides for about 400 awards during the year. That figure does not in any way limit the Referee in his determinations. It is simply a reasonable guess by the departmental officials on the scanty evidence available to them at the present moment.
The Army Pensions Board dealt with 938 claims during the 12 months ended 28th February, 1950. That figure includes 35 appeals and 277 revisions. Of the claims examined, 322 failed and 616 succeeded, but, as regards special allowances, there were 261 favourable and 245 unfavourable reports.
Finally, though there is an increase of £20,750 over the corresponding Estimate last year, it must be remembered that pensions were increased during the past year and the total of the increase was about £34,500 a year.