ABSTRACT
From the discussions on pages 44–6 it is clear that the benefit rates proposed by the Coalition should be raised by 10–15 Per cent to keep pace with the cost of living. Instead of 24s., 40s. and 16s. for a man, a couple and a dependant, the rates should be at least 27s, 45s. and 18s. respectively; and the 20s. and 36s. benefits should be raised to 23s. and 40s. The following pages should be read with this in mind, although for convenience of exposition the White Paper rates are retained. It is also proposed below that unemployment benefit should not be limited to 30 weeks, that sickness benefit should not be reduced after 3 years, that the child’s allowance should be at least 7s 6d, and that maternity grants should be much larger. The combined effect of these changes and of the revised pensions plan given below would be to add about £70,000,000 a year to the cost of the White Paper scheme, half of which would be needed to catch up with the rise in prices, while half would represent a real enlargement of mothers’ and children’s benefits On the gloomy assumptions made on page 81, this revision of the Coalition plan would enlarge the “1945 jump” by an additional 1 per cent of the national income, so that about 9-9½ per cent of the nation’s goods and services might have to be earmarked for social security and medical care; but if we have full employment there need be no extra cost at all (see page 79).
