Government's proposals for compen• A Social Security Plan for Great Britain: sation for disablement or loss of life from industrial injury or specified The Government's White Paper * occupational diseases. The Govern• ment agrees with Sir William that the present system is "based on a wrong IN JUNE 1941, the British Government individuals have little or no control, principle and has been dominated by asked Sir William Beveridge to recom• Neither course alone is effective. A a wrong outlook." Instead of the mend changes in the existing pro• nation cannot avoid widespread pov• concept of compensation for indus• grams for social insurance and allied erty if earning power is impaired by trial injury as an employer liability, services. His report, presented in unemployment or inefficiency, and, the Government presents it as a social November 1942,1 outlined a social regardless of high production levels, service. Both employers and workers security plan for "all citizens without a nation has not solved its problems if would contribute, but the benefits, upper income limit—all embracing in it includes any appreciable groups paid weekly at fixed rates with sup• scope of persons and needs," based on who are in want because their earn• plements for family responsibilities, assumptions that the Government ing power is reduced by ill-health, un• would not depend on the contribution would take other measures to prevent employment, old age, or inability to record. The system proposed "is in mass unemployment, would establish provide properly for their children. many respects like that which is the comprehensive health services, and When the present proposals, modified basis of war pensions schemes. It would provide children's allowances. by public opinion and Parliamentary thus recognizes a certain similarity Early this year, the Government is• debate, are given the force of law, and between the position of the soldier sued White Papers on proposed meas• the necessary "mosaic of details" has wounded in battle and that of the ures to combat unemployment and been worked out by the administra• man injured in the course of his pro• provide Nation-wide health services.2 tive agencies concerned, "provision ductive work for the community . . . The White Paper outlining proposals will have been made against every one each is compensated not for loss of for family allowances, social insur• of the main attacks which economic earning capacity but for whatever he ance, national assistance, and work• ill-fortune can launch against indi• has lost in health, strength and the men's compensation was presented in vidual well-being and peace of mind. power to enjoy life." September.3 Social insurance is but a means to The White Paper does not detail the With this White Paper, the British achieving positive effort and abun• Government's earlier recommenda• Government rounds out its compre• dant living. Yet it is a necessary tions for medical and hospital care hensive social and economic policy. means." for the entire population, to be The first duty of Government, the The Government pays tribute to financed in the main from general White Paper points out, is to protect Sir William Beveridge for his "com• tax funds with a grant from the social the country from external aggression; prehensive and imaginative report" insurance fund. Proposals for insur• the second, to secure the general pros• by embodying much of his plan in its ance and assistance assume, however, perity and happiness of its people. proposals. On details of contribution that everyone in the population, re• The Government must first foster and benefit, it sometimes proposes gardless of income, insurance status, growth of capacity to produce and more, sometimes less; basically, how• occupational class, or other qualifi• earn, with accompanying increase in ever, the Government plan, like the cation, will have access without charge well-being, leisure, and recreation, Beveridge report, provides a unified to any needed maintenance and care and, second, must plan to prevent in• program of social security for the en• in a hospital and to the services of dividual poverty resulting from haz• tire population, using the contribu• medical practitioners in the home, ards of personal fortune over which tory principle as according best with office, and hospital. The cost of the the desires, characteristics, and social health services is included in the legislation of the British people. social security budget. * Prepared in the Division of Publica• tions and Review, Office of the Executive Building on existing programs that There still remains, the White Director. since 1911 have "grown steadily in Paper declares, "the individual's op• 1 Social Insurance and Allied Services; scope and thoroughness," the Gov• portunity to achieve for himself in Report by Sir William Beveridge, Cmd. ernment would extend social insur• sickness, old age and other condi• 6404, H. M. Stationery Office, London, 1942, summarized in Social Security Bulletin, ance in range and amount of benefits tions of difficulty a standard of com• Vol. 6, No. 1 (January 1943), pp. 3-30. and in coverage. Insurance pay• fort and amenity which it is no part 2 Great Britain: Employment Policy, ments would comprise unemployment, of a compulsory scheme of social in• Cmd. 6527, H. M. Stationery Office, Lon• sickness, invalidity, and maternity surance to provide. And in reserve don, 1944, summarized in Social Security benefits, retirement pensions, survivor Bulletin, Vol. 7, No. 9 (September 1944) there must remain a scheme of Na• pp. 20-22, and A National Health Service, benefits, and death grants. tional Assistance designed to fill the Cmd. 6502, H. M. Stationery Office, London, Outside the insurance system, but inevitable gaps left by insurance and 1944, summarized in Social Security Bulle• an integral part of the plan, would to supplement it where an examina• tin, Vol. 7, No. 3 (March 1944), pp. 12-18. be family allowances, to help meet the tion of individual needs shows that 3 Great Britain: Ministry of Reconstruc• tion, Social Insurance, Part I, Cmd. 6550, economic burden of rearing children, supplement is necessary." Assistance, and Part II, Workmen's Compensation, and training allowances for persons financed from general taxation and Cmd. 6551, H. M. Stationery Office, Lon• of working age. administered in close coordination don, 1944. American edition published by The White Paper also develops the the Macmillan Co., New York. with the insurance program, would Table 1.—Great Britain: Summary of social security provisions proposed by Government for each population class Population class

Program Class V. Children under Class IV. Others of 15, or under 16 if in Class I. Employed persons 1 Class II. Others gainfully Class III. Housewives working age, not gain• school; and occupied fully occupied Class VI. Retired per• sons above working age Total population Class V Class VI (47,500,000) 18,100,000 2,600,000 9,650,000 2,250,000 10,100,000 4,800,000 Male (22,850,000) 13,350,000 2,150,000 1,000,000 5,150,000 1,200,000 Female (24,650,000) 4,750,000 450,000 9,650,000 1,250,000 4,950,000 3,600,000

Assistance and services financed wholly or mainly 2 from general taxation Family allowances Universal allowance of 5s. a week for all but one child of eligible age; school meals and milk for all school children without proof of need. Medical care and hos• pitalization 2 Universal unlimited service without charge or proof of economic need. Public assistance Available on proof of need to all with inadequate income from insurance or other resources. Vocational allowances Cash allowance continuing not more than 4 weeks after end of course and free instruction to all who desirepaid employment and training 2

Cash benefits and qualifications under contributory social insurance plan 3

Unemployment bene• If wife living with and maintained byDependent' husband ands earns allowanc not moree thanClas 20s.s a V.—5sweek, husband. a wee receivesk for joint benefit fits 24s.a week for single person; 40s., husband and non• of 16s. a week to 1 de• gainfully occupied wife; (40s) when he is unemployed. No benefit payable for her unemploymentchil unlessd o shef eligibl herselfe isag insurede ex• (Class I) 20s., married woman in• pendent of person re• cluded from family al• sured in own right. Dura- ceiving benefit at sin• lowance. ation 30 weeks. Require• gle rate. ment—26 contributions paid and 50 paid or ex• cused in preceding year; 3-day waiting period com• pensated if unemployed 4 weeks. Sickness benefits (tem• 24s. a week for a single per• Same as for Class I except If wife living with and Dependent's allowance Class V— 5s. a week for porary) 1 son; 40s. husband and non- that no benefits are pay• maintained by husband of 16s. a week to 1 de• child of eligible age ex• gainfully occupied wife; able for first 4 weeks of and earns not more than pendent of person re• 16s. married woman in• sickness. 20s. a week, husband re• cluded from family sured in own right. Dur• ceives joint benefit (40s.) ceiving benefit at sin• allowance. ation 3 years if 156 contri• when he is ill. No bene• gle rate. butions paid; only 1 year fit payable for her illness if 26-155 contributions. 3- unless she herself is in• day waiting period com• sured (Class I or II). pensated if sick 4 weeks.

Maternity grant Flat sum of £4 for all women regardless of class, if 26 contributions paid by husband or wife and 26 contributions paid or excused in contribution year. Maternity benefits 36s. a week for 13 weeks. 36s. a week for 13 weeks. Attendant's allowance of Allowance of 20s. a week Requirements—26 contri• Requirements—evidence 20s. a week for 4 weeks for 4 weeks for attend• butions actually paid in of gainful employment with requirements same ant. Requirements 12 months before begin• for 26 weeks in contri• as for maternity grant. ning of benefit year and bution year and evi• same as for maternity evidence of inability to dence of inability to grant. work or get work during work during substantial substantial part of rest of part of rest of year; must year; must give up gain• give up gainful work ful work during period of during period of benefit. benefit. Survivor benefits 1 Widow with child or children: 36s. a week for 13 weeks; thereafter guardian's benefit of 24s. a week while any child is of eligible age; thereafter,Clas if widows V.—5s aged 50-59. a wee andk marriedfor to husband 10 years before, 20s. a week until age 60, when old-age pension of same amount payable. Widow without child of eligible age: 36s. a week for 13 weeks; thereafter 20s. a week if aged 50-59 and married to husband 10 years before; for incapacitatedchild of eligibl widowe ofag workere ex• in Class I or II, sickness benefit of 24s. a week for as much as 3 years, followed by invalidity benefit of 20s. a week; old-age pension of 20s. a week at age 60. Requirement—same as for old-age retirement. cluded from family allowance. Amount per child increased to 12s. a week 4 for all children of eligible, age if both parents dead. Invaliditybenefits (permanentPayable disabil after• 3 continuous years of sickness beneftis as Dependent's allowance Class V.—5s. a week for ity) 1 long as person remains incapable of work or until he of 15s. a week to l de• child of eligible age ex• reaches age when retirement pension payable; benefits pendent of person in cluded from family same as for old-age retirement, except that a married Class I or II. allowance. woman insured in her own right receives 16s. a week. Old-age retirement 35s. a week for couple (husband aged 65 or over and nongainfully occupied wife of any age); 20s. a week for a single pension man aged 65 or over; 20s. a week at age 60 or over for a single woman and a married woman insured in her own Class VI.—Same as for right; amounts increased for deferred retirement and reduced for deficient contribution record and for earnings of Classes I, II, III, and more than 20s. a week after retirement. Requirement—156 actual contributions and a yearly average of 50 IV. contributions paid or excused. Death grant Flat sum varying from £6 to £20 depending on age; some exceptions during 10-year transitional period.

1 Proposed provisions for disability, invalidity, or death of employed persons (Class I) resulting from injury or specified disease of occupational origin are sep• 3 Benefits vary with sex and are lower for persons under age 18; they are reduced if full qualifying requirements are not met. A shilling is about 20 cents at exchange rate of £1=$4.035, stabilized Mar. 25, 1940. Translation to dollars without considering such factors as living costs and wage rates would be misleading. arate from general insurance system. 4 7s. from insurance system and 5s. from general taxation. 2 About one-fourth of the estimated expenditures for health services will be derived from insurance contributions; the insurance fund will contribute a small sum annually toward vocational training. Table 1.—Great Britain: Summary of social security provisions proposed by Government for each population class—Continued Population class Class V. Children under Class IV. Others of 15, or under 16 if in Program Class I. Employed persons1 Class II. Others gainfully school; and occupied Class III. Housewives working age, not gain• Class VI. Retired per• fully occupied sons above working age Special cssh-benefit system for industrial injury or specified occupational diseases Injury allowance 35s. a week for single person for 13 weeks; an industrial 8s. 9d. a week if she is re• Dependent's allowance Class V.—5s. a week for invalidity pension there• siding with or wholly or of 8s. 9d. a week to 1 child of eligible age ex• after; 3-day waiting period mainly dependent on dependent of person cluded from family compensated if disability husband receiving in• receiving benefit at allowance. lasts 4 weeks or more. jury allowance. single rate. No required number of contributions. Industrial pension 40s. a week for single person 10s. a week if she is resid• for total disability; par• Dependent's allowance Class V.—7s. 6d. a week tial disability compen• ing with or wholly or of 10s. a week to 1 de• for child of eligible age sated at lower rates pro• mainly dependent on pendent of person re• excluded from family portioned to degree; sup• husband receiving indus• ceiving benefit at sin• allowance. plement of 10s. a week if trial pension for total gle rate for total dis• totally unemployable; ad• disability; lower rate for ability; lower rate for ditional 20s. a week (maxi• partial disability. partial disability. mum) if constant attend• ance needed. Duration until recovery or death. No required number of contributions. Benefits for survivors 30s. a week for widow if aged 50 or over, if caring for worker's child, or if incapable of self-support; otherwise 20s. 20s. a week for widower if incapable ofClas support.s V.—7s . 6d. a week of deceased worker Maximum of 30s. a week joint pension for dependent parents fo 20s. for 1 parent only. for child of eligible age in Class I Maximum of 20s. a week for other adult dependent if incapable of self-support and if no widow's or parent's pension payable. excluded from family If none of these pensions is payable, 20s. a week (maximum) for woman who resided with worker if she has care of his child or children, as long as at least 1 childallowance is of eligible. Amoun age. t per Temporary allowance of 36s. a week for 13 weeks for all other adult members of family, if wholly dependent; if partially dependent, benefits related to degreechil of dependency.d increase d to 12s. a week 3 for all children of eligible age if both parents dead. Class VI.—Same as for classes I, II, III, and IV. For footnotes, see opposite page. include unemployment assistance, attending school or serving appren• or economic status but in the benefits special provisions for the blind, and ticeship, and the allowance will con• they need and the contributions they financial aid to any person on proof tinue for school children or appren• must make to receive them. There of need. tices until July 31 following the six• will be a single weekly contribution teenth birthday. Normally made out for each contributor, paid by one Family Allowances to the father as the economic head of stamp on an insurance card to cover The Government recognizes that, the household, the allowance will be all the benefits available to the con• next to interruption or loss of earn• drawn in such a way that the mother tributor's group. ings, the economic burden of rearing can cash it. Classes I, II, and IV constitute the children is the most serious cause of When the parent or parents receive contributing population. Most mar• poverty. The White Paper therefore unemployment, sickness, invalidity, ried women in Great Britain, not being proposes a system of family allow• widow's, or guardian's benefits, or an gainfully employed, will be in Class ances at a rate of 5s. a week per industrial injury allowance, an al• in (housewives) with benefits based child—payable without regard to in• lowance of 5s. will be paid also for on their husband's contributions. come—as a national contribution the oldest child of eligible age; the Married women who wish to maintain toward the costs of maintaining chil• amount payable for this child will be or reestablish their own insurance dren. In addition, it proposes allow• increased to 7s. 6d. a week if the par• status can choose to contribute in the ances in kind in the form of school ent is receiving an industrial pension appropriate class (I, II, IV) and ac• meals and milk, to be given without for total disablement or has died from quire benefits in their own right. To charge to all children in primary and industrial injury. Children below limit insurance against sickness and secondary schools which receive working age who have lost both par• unemployment to those with more grants from Government departments ents will receive 12s. a week, regard• than casual employment, however, the of education. The Beveridge plan less of the cause of death or the par• Government proposes that married had proposed an average of 8s. a week, ent's contribution record. women should be compulsorily ex• graduated according to age. empted from insurance against these Believing that, unless income is in• The General Insurance System risks if their earnings do not exceed terrupted, most families can afford The Government accepts one of the 20s. a week. the full cost of rearing one child, the fundamental principles of the Bev• Government proposes to pay the fam• eridge plan in classifying the popula• The Government, unlike Sir Wil• ily allowance continuously for all but tion into the six groups (table 1) liam, does not propose to gear benefits the oldest child under age 15, or 16 if which differ not according to earnings to amounts necessary for subsistence, declaring that "Circumstances vary, or unemployment lasts for 4 weeks or Unmarried mothers will qualify for not only between places but between more, benefits are payable for these these benefits on the same terms as people, and the conception of relating first 3 days. Self-employed persons married women if they meet insurance payments precisely to individual needs will receive sickness benefits after 4 qualifications through their own con• is not really capable of realization in weeks of uncompensated sickness, tributions. The qualifying conditions an insurance scheme, particularly rather than the 13 weeks proposed by for maternity benefits are 26 weeks of where that scheme covers all classes Sir William. gainful occupation for which contri• of the community." Unemployment benefits will be pay• butions have been paid in the 12 Unemployment and sickness.— able for a maximum of 30 weeks in a months immediately preceding and Adopting Sir William's recommenda• continuous period of unemployment; evidence that the woman was unable tions, the Government proposes to additional days are provided for con• to obtain work or incapable of working make unemployment and sickness tributors with good records of em• for a substantial part of the rest of benefits identical in amount (with one ployment in recent years. Spells of the year. For a self-employed mar• exception) and to unify contribution unemployment or sickness separated ried woman who has elected to be ex• and waiting-period requirements and by less than 3 months will be consid• empt from contributions and to rely on the benefit year. It did not, however, ered continuous. Sickness benefits her husband's insurance, evidence of accept the Beveridge recommendation will be payable for 3 years of continu• gainful occupation will satisfy the re• of unlimited duration of benefits. ous sickness if the contributor has quirements. Unemployment benefit will be re• actually paid 156 contributions. If Invalidity and old age.—Benefit stricted to persons in Class I (em• his disability persists, at the end of amounts and qualifying conditions for ployees), who constitute the largest the 3 years he will receive an invalid• long-term risks are also to be coordi• single population group, and sickness ity benefit at a lower rate. If 26 but nated. Invalidity insurance will cover benefit will be confined to Class I less than 156 contributions have been all gainfully occupied persons of work• and Class II (others gainfully occu• paid, the contributor will receive sick• ing age, while retirement pensions will pied). ness benefits for not more than a year be payable to any qualified person When the husband is unemployed and will not be entitled to the invalid• above working age. When persons re• or ill and his wife is not gainfully ity benefit thereafter. ceiving invalidity benefit reach retire• occupied, a standard rate of 40s. a The White Paper does not specify ment age (60 for women, 65 for men), week for the couple is proposed. A the conditions which will disqualify the invalidity benefit will be replaced single man or woman or a man whose otherwise eligible persons from bene• by a retirement pension of the same wife is gainfully occupied would re• fits, except to indicate that unreason• amount. Similarly, widows who qual• ceive 24s. a week, and boys or girls able refusal to undergo a course of ify for widow's pensions will be trans• aged 16-17 would get 15s. A married training should disqualify an appli• ferred to the retirement rolls at age 60. woman insured in her own right cant from receiving unemployment A standard amount of 35s. will be would get 20s. a week for unemploy• benefits. The training allowances for payable weekly as a joint benefit for ment and 16s. a week for illness. A unemployed persons who take an ap• invalidity or old age to a man whose person receiving benefit at the single proved course of training or industrial wife is not gainfully occupied, re• rate may receive a supplemental rehabilitation will be at a higher rate gardless of the wife's age; a single allowance of 16s. a week for one adult than unemployment benefits and may man or woman or a married man dependent or for a housekeeper who continue for as much as 4 weeks after whose wife is working will receive 20s. looks after his dependent children. the course is completed. If the job A gainfully occupied married woman There is to be a fixed benefit year received after training is not in the insured in her own right will get 16s. in which a worker in Class I will be worker's home town, a "settling in" al• a week for invalidity and 20s. for old- entitled to either type of benefit at the lowance will also be payable for the age retirement. A benefit of 15s. a standard rate if he or she has actually first few weeks in the new location. week will be payable for one adult de• paid 26 contributions and has, in ad• pendent of a person receiving a single dition, 50 contributions paid or ex• person's invalidity benefit; no allow• cused 4 in the contribution year imme• ance for a dependent other than the diately preceding the benefit year. If Maternity.—A maternity grant of £4 wife is made in the old-age retirement contributions are fewer, benefits will will be payable for all women, whether benefit. be scaled down proportionately. A or not gainfully employed, if the To qualify for invalidity or retire• contributor who exhausts rights to woman or her husband has actually ment benefits, a worker must have 156 unemployment or sickness benefits paid 26 contributions and an addi• contributions to his credit. He may, will requalify after he has paid 10 tional 26 contributions have been paid if necessary, draw invalidity benefits weekly contributions. or excused in the last complete con• up to retirement age. Workers with The waiting period is 3 days for both tribution year. In addition to the less than 156 actual contributions will types of benefits, but if the sickness maternity grant, maternity benefits of not qualify for invalidity benefits or 36s. a week are payable for 13 weeks retirement pensions; assistance will to gainfully occupied women who give be available on a needs basis. Pull 4 A contribution is "excused," or cred• up their work for that time. Women ited as if paid, when the contributor is who are not gainfully occupied are to retirement benefits will be payable receiving certain benefits or is certified receive an attendant's allowance of only to those who in addition to 156 as unemployed or incapacitated by sick• actual contributions have a yearly ness or maternity, or is a full-time student 20s. a week for 4 weeks toward provid• or unpaid apprentice. ing domestic help after childbirth. average of 50 contributions paid or tirement. The date on which the (and, if necessary, his wife) has not excused; for contributors with less worker declares his intention to retire earned more than 20s. in the pre• than this average, benefits will be at will normally be the date from which vious week; if he has higher earnings lower rates. The retirement benefits benefits will be awarded. Thereafter to declare, he must report to his local are at slightly lower rates than those benefits will be reduced for any insurance office, where appropriate proposed by Sir William but would amount of earnings exceeding 20s. a deductions will be made before the become effective at once rather than week. A wife's earnings of more than pension is paid. If his earnings are after 20 years. 20s. a week will serve to reduce her less than 55s. (joint) or 40s. (single) Persons who continue to work after share of a joint pension. a week and come from regular em• retirement age will receive an addi• To draw his pension in full from ployment, a continuing pension at tional 2s. a week (joint) or 1s. a week the Post Office, the pensioner will the appropriately reduced rate can be (single) for each year they defer re• have to sign a declaration that he paid by the Post Office on the pen-

Table 2.—Great Britain: Comparison of social security benefits payable to a married couple with two young children, under existing programs, Beveridge plan, and Government proposals1 Existing programs Beveridge plan Government proposals (Husband's contributions (1942): To• Risk tal is 10d. a week—5½d. for health, (Husband's contributions: 4s.3d.a week (Husband's contributions: 5s 10d. a week for all 10d. for unemployment, 6½d. for for all risks.) risks.) widows, orphans, and old-age pensions.) Unemployment 38s. a week, for 26 weeks; thereafter 56s. a week with no time limit; required 50s. a week for 30 weeks, with additional days for assistance on proof of need. attendance at training center if un• good employment record; training allowance employment prolonged. at higher rate continued for as much as 4 weeks after end of course, not counted in benefit duration. Temporary disability: Nonindustrial origin 56s. a week, unlimited in duration, 18s. a week for 26 weeks while both children under working 50s. a week for 3 years. age. 60s. a week (maximum) or 7/8 earn• 56s. a week for 13 weeks; thereafter 53s. 9d. a week for 13 weeks; higher disability Industrial origin ings for 13 weeks; thereafter pen• pension for permanent disability. allowance or pension for permanent disability sion for permanent disability; or thereafter; lump-sum settlement or temporary lump-sum settlement 2 allowance at lower rate for minor disablement only. Permanent disability: Nonindustrial origin 10s. 6d. a week until transferred to 56s. a week while both children under 45s. a week while both children under working old-age pension. working age; 48s. a week until second age; 40s. a week until second child reaches child reaches working age; 40s. a week working age; 35s. thereafter until husband until husband aged 65, and 40s. a reaches age 65 and 35s. a week thereafter as week thereafter as old-age retirement old-age retirement benefit. benefit. After 13 weeks of temporary disabil• After 13 weeks of temporary disability 72s. 6d. a week if totally unemployable and both Industrial origin ity benefit, 60s. a week (maxi• benefit, pension of 2/3 earnings from children under working age; 20s. a week addi• mum) or7/8 earnings, or lump-sum 56s. (minimum) to 76s. (maximum) tional if requiring full-time attendance; no settlement 2 a week, while both children under deduction for initial period of hospitalization working age. but 10s. a week deducted if he reenters hospital; benefits reduced for partial disability. Maternity £2 as lump sum £4 as lump sum £4 as lump sum; attendant's allowance of 20s. a week for 4 weeks to provide domestic help. Death grant for any member of £6-£20 as lump sum, depending on £6-£20 as lump sum, depending on age of family age of deceased. deceased. Death of husband 3 18s. a week while both children 52s. a week for 13 weeks; 40s. a week 46s. a week for 13 weeks; 34s. a week thereafter under working age; 15s. a week thereafter while both children under while both children under working age; 29s. while only 1; 10s. a week there• working age; 32s. a week until second a week until second child reaches working age; after. child reaches working age; nothing 20s. a week thereafter If aged 50-59; at age 60, thereafter until old-age retirement old-age retirement benefit of 20s. a week. benefit at age 60. 16s. a week (8s. each) until older child 24s. a week (12s. each) until older child reaches Death of husband and wife reaches working age; 8s. a week until working age; 12s. a week until second child second child reaches working age; reaches working age; nothing thereafter. nothing thereafter. Old age 4 Effective after 20 years: 40s. a week Effective at iniation of system: 35s. a week when 20s.a week when husband reaches age 65, regardleswhes onf husbanage of wifed retire. s from work at husband retires from work at age 65, regardless age 65 regardless of age of wife; addi• of age of wife; additional 2s. a week for each tional 2s. a week for each year retire• year retirement postponed beyond aga 65. ment postponed beyond age 65. Pension reduced by amount of earnings over 20s. a week. Medical needs: Husband Free services of all medical practition• Free services of all medical practitioners; un• Free services of general practitioner. ers; unlimited free hospitalization; limited free hospitalization with disability possible reduction of disability bene• benefits reduced by 10s. a week after 28th day. fits during hospitalization. Free services of all medical practition• Wife,children, and any other members of household. ers; unlimited free hospitalization. Free services of all medical practitioners; un• limited free hospitalization with no reduction in insurance benefits. 1 Assuming husband a wage earner with all contribution conditions met, wife 4 Assuming that both children have attained working age when father retires. not gainfully occupied, and both children under working age, i. e., under 15, or 16 if attending school. 2 Includes war increases. Source: Social Insurance and Allied Services, Report by Sir William Beveridge, 3 From nonindustrial causes. Benefits differ under workmen's compensation. Macmillan, New York, 1942, pp. 113, 217; Social Insurance, Part I, Cmd. 6550, and Pari II, Workmen's Compensation, Cmd. 6551, pp. 30-31, H. M. Stationery Office, London, 1944. sioner's declaration that his earnings under age 10 unless they were born all contribute toward the fund. In have not changed. after the beginning of the system. advocating employer and employee Survivorship.—Provisions for wid• Reduction of benefits during hos- contributions for workmen's compen• ows of insured persons include tem• pitalization.—The Government pro• sation at flat rates without regard for porary benefits to aid in adjusting to poses to reduce the standard rates of the hazards of individual industries, changed economic conditions, guar• insurance benefits by 10s. a week the White Paper says . . . "Equal con• dian's benefits, and widow's pensions. during hospitalization after the bene• tributions will be required for the The latter two terminate on remar• ficiary has been hospitalized for 28 main benefits under the general riage and are to be reduced for weekly days, since the hospital will provide scheme of social insurance, and from earnings of more than 20s. The con• many items, such as food, fuel, light, the workman's point of view it would tribution requirements for all types and bedding, which are part of ordi• seem desirable that he should be on of benefits for widows are the same nary maintenance. This reduction an equality in this respect with the as for full retirement pensions, that is, applies to sickness, maternity, and in• employer." Dismissing suggestions 156 actual contributions and an an• validity benefits, retirement pension, for experience rating, which had been nual average of 50 contributions paid widow's and guardian's benefits, and accepted by Sir William, the Govern• or excused, with reduced benefits for widow's pension. Except in the case ment denies the argument that spe• lower averages. of a joint retirement benefit, reduc• cial levies based on the degree of Temporary benefits of 36s. a week tion is not made when the benefici• hazard in the industry will provide a will be paid for 13 weeks to women ary's dependent receives hospital care. real financial incentive for employers widowed before attaining age 60 and to prevent accidents. "It must be to older widows whose husbands had borne in mind that a substantial num• not qualified for retirement pensions. Workmen's Compensation ber of accidents are due to causes If the widow of a man insured in The Government considered the outside the employer's control." It Class I or II has no child below work• feasibility of including workmen's is believed that no experience-rating ing age in her care at the end of the compensation in the general insur• system could be operated equitably 13 weeks and is incapacitated for ance system, as Sir William had pro• and "that the complication and ex• work, she will receive sickness bene• posed, on the same terms as disabil• pense involved in any such system fits of 24s. (or after 3 years, invalidity ity arising from other causes, and su• would be out of all proportion to the benefits of 20s.) a week as long as her perimposing on that system a liabil• results likely to be achieved." illness lasts; at age 60, she receives a ity on the individual employer to pro• Industrial disability.—An industrial retirement pension. vide additional benefits; it was con• injury allowance, for the first 13 A guardian's benefit of 24s. a week cluded, however, that such an ar• weeks of work-connected disability, will be paid a widow with one or more rangement, by perpetuating the prin• will be 35s. a week. After that pe• children below working age in her ciple of the liability of the individual riod an industrial pension is payable care. This benefit, which starts with employer, would retain the defects of at the rate of 40s. a week if the pen• the 14th week of widowhood, will con• the present system. The White Paper sioner is totally disabled; for partial tinue as long as any child is of eligible therefore proposes to set up a sepa• disability the amount will be reduced age. rate system, with separate contribu• in proportion to the degree of dis• If the widow is aged 50 or over when tions and a separate fund, but ad• ability. The amounts are to be the her husband dies or when her guard• ministratively coordinated with the same for men and for women, and ian's benefit ceases, and if she was general insurance system under the benefits at half the adult rates will be married to her husband for at least Minister of Social Insurance. paid to unmarried girls and boys 10 years before either event, she will The system would cover all per• under age 18. receive a widow's pension of 20s. a sons working under contract of serv• If, despite remedial measures, the week until she qualifies for retirement ice or apprenticeship (except those pensioner remains virtually unem• pension. If the widow of a worker in under school-leaving age) and would ployable, a personal supplement of Class I or II is incapacitated, she may also include nonmanual workers with• 10s. a week will be paid. A totally receive disability and invalidity bene• out income limit. For work-con• disabled worker who needs constant fits until she reaches age 60 and gets nected injuries or death, industrial attendance may receive an additional her retirement pension. allowances or pensions would re• weekly allowance of not more than A lump-sum death grant, varying place sickness, invalidity, widow's, 20s. with the age of the deceased person, guardian's, and orphan's benefits, but While the worker is receiving either will be paid for an insured person of not death grants, under the general a disability allowance or an industrial any class, for the wife or child of each system. invalidity pension for total disability, insured person, and for a pensioner, Both benefits and contributions his wife will receive an allowance (8 s. as follows: at ages below 3 years, £6; would be fixed amounts, since the 9d. or 10s. a week, respectively) if between 3 and 6 years, £10; between Government, in contrast to Sir Wil• she was living with or mainly depend• 6 and 18 years, £15; and over 18 years, liam, proposes to gear industrial pen• ent on him at the time of his injury. £20. As a transitional provision, only sions to degree of disability rather The same allowances will be payable £10 will be paid for persons aged 55-64 than wage loss, and the benefits would to a husband dependent on a woman when the program starts, and no not be conditioned on a required num• employee receiving an injury allow• grants will be available for children ber of contributions. The employer, ance or pension. In cases of partial the worker, and the Exchequer would disability, these allowances for de• joint pension will be 30s. If no pen• age retirement benefits before the on• pendents are to be reduced in pro• sion is payable to a widow or parent, a set of blindness, the Government portion to the degree of disability rec• maximum weekly allowance of 20s. proposes to abolish the present non- ognized in the pension. will be payable to one adult member of contributory pension system for the If no wife's allowance is payable and the family incapable of self-support.5 blind and to provide assistance to all the worker is incapable of work as a A widower who is incapable of self- needy blind persons on the same basis result of the injury, an allowance at support will receive 20s. a week if he as for other needy residents of the the rate for a wife can be paid, as in was married at the time his wife re• country. The major expenditures for the general system, for one adult ceived an industrial injury and was public assistance will be for old-age dependent or for a housekeeper who living with his wife at the time of her and unemployment assistance. looks after his dependent children. death from the injury. Any other In contrast to the provisions under adult member of the deceased work• Income and Expenditures the general system, no deduction from er's family will be eligible for a tempo• The social security budget (table 3) any of these payments will be made rary allowance of 36s. a week for 13 proposed by the Government excludes while a worker is hospitalized because weeks, if wholly dependent on the the cost of workmen's compensation, of industrial injury. If, however, the worker at the time of the injury, or, training allowances, and benefits in worker has to reenter a hospital or if partially dependent, for an amount kind to children but includes esti• institution for further approved treat• proportioned to the degree of depend• mated expenditures for health serv• ment, 10s. a week will be deducted ency. Pensions for widows and other ices—toward which grants will be from the industrial pension for total women dependents cease on their made from the social insurance disability, but not from the allowances marriage, but on remarriage a widow funds—and costs of family allow• payable during total disability to the is to receive a gratuity equal to 1 ances 6 and national assistance, wife, child, or other dependent. year's pension. financed from general revenues. It is Death.—The widow of a man who estimated that contributions of in• dies from industrial injury will receive Public Assistance sured persons and of employers will a pension if she was married to him represent nearly half (44 percent) of before the injury and was living with National assistance—now limited expenditures for these programs at him at the time of his death. The the beginning of the system. The amount will be 30s. a week if she is mainly to old-age pensioners, wid• share of the Exchequer or local tax aged 50 or over, or is incapable of self- funds would be 54 percent in 1945, support, or has the care of a child owed pensioners with children, and as compared with 65 percent esti• under working age; otherwise, 20s. a mated for existing programs and week. If she is aged 50 or more when able-bodied persons normally em• about 50 percent under the Beveridge the last child reaches working age, proposals. her allowance will continue at the ployed in occupations covered by ex• 30s. rate. 6 The insurance funds will bear the costs isting social insurance programs— of the allowance for the oldest child of Whether or not the worker leaves a eligible age in families receiving benefits, widow, a maximum of 20s. a week will wil5 lI f bthere expandee is no sucd undeh adulr t thdependente Govern, a• and of increasing from 5s. to 12s. a week be paid to a deceased worker's parent pension of the same amount will be pay• the allowance for orphaned children. who is incapable of self-support; if ablment'e tso plaanyn womato providn residine financiag withl aithde Estimates of contributions and expendi• worker at the time of his injury while she tures include these amounts for children both parents qualify, the maximum has the care of one or more of his chil• in the type of benefit with which they dreto ann yunde persor workinn on proog agef .o f need. Since are associated. most persons who become blind would Table 3.—Great Britain: Estimated income qualifand expendituresy for sickness for ,social invalidity security, ounderr old -existing programs (P), the Beveridge plan (B) and Government proposals (G) 1945 1955 1965 1975 1945 1955 1965 1975 Program P B 1 G 1 B 1 G 1 B 1 G 1 G 1 P B 1 G 1 B 1 G 1 B 1 G 1 G 1 Amount (in millions) Percentage distribution

Income, total £429 £697 £650 £764 £731 £858 £796 £831 100 100 100 100 100 100 100 100 Contributions 136 331 283 331 280 324 275 259 32 48 44 43 38 37 35 31 Interest on existing funds 15 15 15 15 15 15 15 15 3 2 2 2 2 2 2 2 Balance from Exchequer 2 278 351 352 418 436 519 506 557 65 50 54 55 60 61 63 67 Expenditures, total 411 697 650 764 731 858 796 831 100 100 100 100 100 100 100 100 Social insurance benefits 3 232 367 374 442 428 553 500 542 3 57 53 57 58 59 64 63 65 National assistance 3 95 47 69 41 73 32 70 67 3 23 7 11 5 10 4 9 8 Family allowances 3 4 113 59 111 60 103 56 52 3 1 16 9 15 8 12 7 6 Health services 80 170 148 170 170 170 170 170 19 24 23 22 23 20 21 21 1 The Beveridge plan includes and Government plan excludes amounts for Source: Social Insurance, Part I, Cmd. 6550, H. M. Stationery Office, London, workmen's compensation and training benefits. 1944, pp. 52, 53, and 55, and Social Insurance and Allied Services, Report by Sir 2 Or local tax funds. William Beveridge, Macmillan, New York, 1942, pp. 199, 206-207, 209. 3 Administrative costs for national assistance and family allowances included in social insurance benefits. Contributions.—In most cases the Table 4.—Great Britain: Weekly social insurance contributions under Beveridge plan contributions are lower than those proposed by Sir William (table 4). (B), and Government proposals (G) 1 Weekly contributions vary with occu• Class I Class II Class IV pational class, age, and sex and range 7 Sex and age group Total Employer Insured person from 6s. 11d. for men aged 18 and B G B G over in Class I to 1s. 10d. for girls 16 2 2 and 17 in Class IV. Contributions B G 2 B G B G paid by persons in Classes II and IV Men: s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. are smaller than the joint employer- 21 and over 7 6 5 3 3 10 4 3 7 4 3 2 3 9 4 18-20 years 6 3 6 2 9 2 3 6 3 3 6 4 3 0 3 employee contribution, because the 16-17 years 5 0 4 3 2 6 1 11½ 2 6 2 3½ 2 0 2 9 1 6 2 2 Women: 3 risks against which these persons 21 and over 6 0 1 2 6 3 3 6 10 3 9 6 3 0 8 need social insurance are more lim• 18-20 years 5 0 5 2 0 2 3 0 2 3 0 3 2 6 2 ited. The contributions paid by per• 16-17 years 4 0 3 5 2 0 1 6 2 0 1 11 2 0 2 5 1 6 1 10 sons in Class II, on the other hand, 1 See table 1 for occupational classification of popu• 3 Married women can elect exemption from con• lation and scope of protection. Of these amounts, tributions or can contribute at Class I, II, or IV are larger than the employee contri• 10d. for men, 8d. for women, and 6d. for young rates, according to certain conditions, If they wish to bution paid by insured persons in persons under 18 represent contributions toward retain insurance status in their own right. health services; the employer pays 1½d of the Source: Social Insurance, Part I, Cmd. 6550, H. Class I. amount for men and women in Class I. M. Stationery Office, London, 1944, p. 43; Social 2 In addition employer pays 3d. a week for men, Insurance and Allied Services, Report by Sir William Every week in the year must be 2d. for women, 1½d. for boys under 18, and 1d. for Beveridge, Macmillan, New York, 1942. accounted for by an appropriate girls as contribution toward workmen's compensa• stamp on the social insurance card tion; insured person pays equal amount. or by excusal or exemption. Persons in Classes I and II will be excused poses of meeting contribution require• tions, though their employers, if any, from contributions during certified ments for insurance status. will continue to pay the employer sickness, maternity, unemployment Contribution requirements for in• share. The exemptions comprise (1) (applicable to Class I only), and re• validity and old-age, and survivor persons In Classes II or IV with in• ceipt of training allowances. In Class benefits for widows, are modified for comes of less than £75 a year; (2) IV, contributions need not be paid by persons insured or receiving benefits those of pension age who take up em• students or some others engaged in under the existing insurance systems ployment after having accepted re• full-time courses of instruction, by and for those who are over age 16 tirement pensions; (3) widows in unpaid apprentices, by persons receiv• when the new system starts, so that Class I or II who are receiving guard• ing training allowances, or by the In• they may qualify for full benefits. ian's benefits or widow's pensions; (4) dividual while in receipt of widow's Housewives are in general covered by gainfully occupied married women or guardian's benefits or widow's pen• their husbands' contributions, but if who earn less than 20s. a week or who sions. All "excused" contributions they are in gainful work and elect to do not elect to continue contributing; are deemed to have been paid for pur• contribute in their own right, married and (5) insured persons in prison. women can claim sickness, unemploy• Persons who leave Great Britain 7 This amount includes employer contri• ment, and old-age benefits based on may be permitted to maintain their bution under the general system and 6d. their own contribution records. contribution records through special a week for workmen's compensation, pay• A few persons may at times be arrangements. While in Great Brit• able in equal shares by worker and em• granted exemptions from contribu• ain citizens of other countries will be• ployer. come contributors immediately if em• Table 5.—Great Britain: Percentage allocation of full actuarial contribution for social ployed; otherwise, only if they remain insurance for adult employed person (Class I) under Government proposals 1 in the country for more than 6 months for purposes other than courses of Total Insured person Employer Exchequer 2 study. Insurance benefit Men Wom• Men Wom• Men Wom• Men Wom• For workmen's compensation, the en en en en weekly employee contribution is set Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 at 3d. for men, 2d. for women, and Retirement pensions 33.6 39.9 34.6 40.5 37.6 44.8 25.1 30.6 l½d. for boys and 1d. for girls under Widows and guardians benefits 7.3 7.5 8.5 5.2 age 18. An equal amount is to be Unemployment benefit 3 33.5 28.4 27.6 22.7 30.1 25.8 49.8 43.5 paid by the employer. Payments will Sickness and invalidity benefits 17.2 17.4 17.4 17.3 19.1 19.8 13.1 13.6 Maternity grant and benefits 1.4 6.4 2.9 9.7 3.6 1.0 4.8 be made by adding the required Death grant 2.1 1.6 5.2 4.0 amounts to the value of the insurance Administrative cost 4.9 6.3 4.6 5.8 4.7 6.0 5.8 7.5 stamp which the employer places each 1 Based on assumption that contributions for long- Employers and employees share equally in Class I term benefits represent 5/6 of the amount required contributions, except for maternity grant, attendant's week on the worker's insurance card. for benefits to an insured person (and any eligible allowance, and death grant, which are not charged The worker's share of the contribu• dependents) contributing from age 16 until retire• to the employer's contributions. ment age. The Exchequer would bear the remaining 2 The avcrage proportion from Exchequer is about tion, like other contributions for Class 1/5 and would carry a larger part of costs for newly 22 percent of full contribution. covered persons and for increased benefits for persons 3 Assuming average unemployment of about 8.5 I, will be deducted by the employer insured under existing systems. Contributions percent. represent the costs of unemployment benefits and Source: Computed from contribution amounts in from the worker's wages. Contribu• 5/6 those of other short-term benefits (except death Social Insurance, Part I, Cmd. 6550, H. M. Sta• tions will provide five-sixths, and the grants, for which the contribution represents the tionery Office, London, 1944, p . 46. total costs), and the Exchequer meets the balance. Exchequer one-sixth, of the income of the industrial injury insurance fund, considered an essential of assuring more conveniently through other de• out of which all benefits and admin• freedom from want on an insurance partments, such as the Post Office for istrative charges will be paid. basis for the majority of the popula• pensions and the Employment Ex• tion. changes for unemployment benefits. Expenditures.—The proposed ex• penditures of £650 million in 1945 Administration Administration of national assist• (table 3) are increased to £733 million The White Paper proposes to estab• ance would be centralized in a single if the Government's estimates of £23 lish a single organization with re• department, and present responsi• million for workmen's compensation sponsibility for all parts of the bilities for public assistance carried by (£20 million for payments, £3 for ad• system—either a ministry or admin• the Customs and Excise Department ministration) and £60 million for pay• istrative board. The Government would be transferred to the Assistance ments in kind for school children are urges immediate appointment of a Board. Health functions of local pub• included. The allocation of this £733 Minister of Social Insurance, to be lic assistance authorities would be million compares, as follows, with the responsible for legislative and other merged in the new national health budget proposed by Sir William: preliminary work and to ensure service. Local authorities would con• smooth functioning of existing sys• tinue to be responsible for care and Estimated ex• maintenance of orphaned and de• penditures for tems and their transition to the new 1945 provisions when adopted. Later, serted children and for providing ac• (in millions) some other form of administration commodations for old people who need Item them. The National Assistance Gov• may be desirable. The Minister of ern• Beveridge Social Insurance would be responsible Board, however, would make suitable ment for establishing and administering the arrangements for persons other than system of family allowances and the sick, the old, and the young, for Total £733 £697 would have ministerial responsibility whom assistance in cash is not ap• Retirement pensions 169 126 for the work of the Assistance Board. propriate. Widows and guardians benefits 34 29 Sickness and invalidity benefits 55 57 The Beveridge report proposed that While believing that responsibility Industrial disability 1 20 15 Maternity grants and benefits 2 9 3 8 placement functions should either be for both assistance and insurance Unemployment benefits 87 4 110 transferred from the Ministry of Unemployment assistance 22 should rest on a single Ministry, the Other assistance 43 44 Labour and National Service to the Government proposes to separate ad• Funeral grants 4 4 Family allowances 5 117 110 Ministry of Social Security or should ministrative arrangements. Even Health services 148 170 be conducted in the local offices of the though examination of means is an Administration 25 24 social insurance system, but the Gov• important distinction between assist• 1 Includes pensions in fatal cases. ernment believes that employment ance and insurance, the Government 2 Includes attendants' allowances. 3 Includes marriage grants. services should remain with the Em• doubts if the distinction would be suf• 4 Includes training benefits not included in Gov• ernment estimates. ployment Exchanges under the Min• ficiently preserved if the two programs 5 Includes £60 million for payments in kind, as• istry of Labour. were dealt with by the same staff. suming that program is in full operation. Any overlapping of inspections and The Government allocates almost a To enforce contribution require• visits or duplication of staffs can be third of proposed expenditures as in• ments and avoid duplication of bene• avoided by agency arrangements; at surance payments to widows and aged fits, the social insurance system will present, for example, an unemployed persons, while Beveridge allotted require a register of the entire popu• worker who exhausts his unemploy• them about one-fifth of the total. lation to record the contribution class ment benefits receives his unemploy• Both propose to spend about one-sixth of each person, transfers between ment assistance (after his needs have of the total for children, though under classes, contribution records, benefit been examined and assessed by the the Government plan more than half rights, and insurance status. A net• Assistance Board) in the same way the amount would be in payments in work of local social insurance offices as benefits. kind, while Sir William gave no esti• would be established to receive claims, Although the Government recog• mate of the costs of supplementing give information and guidance, and nizes the value of approved societies children's allowances with free milk pay certain benefits. An industrial in the development of health insur• and school meals. Public assistance pensions officer in this local office ance, it regretfully can find no satis• is a larger proportion of the total would be responsible for workmen's factory place for those societies in the under the Government plan because compensation claims. Sickness bene• social insurance program. Payment of its provisions for unemployment fits will be paid, according to the of unemployment benefits through assistance. Moreover the Govern• claimant's choice, either by postal trade unions will also be discontinued ment anticipates substantial expendi• draft or cash at the local insurance under the proposed plan, and the tures to supplement insurance bene• office to someone authorized by the special unemployment insurance sys• fits on a needs basis, since benefit claimant or, if such arrangement is tems for the banking and insurance levels will not represent the full sub• not appropriate, to the claimant in industries and agriculture will be sistence amounts which Sir William his home. Some benefits may be paid abolished.