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XII. It is interesting to know. Read and translate





Family Allowances Act, 1945. The wartime coalition government approved a system of cash family allowances- normally payable to the mother- amounting to 5 shillings per week for each child in the family except the first. The allowance was to be paid from the child’s birth until the minimum school- leaving age, or until the first August following his 16th birthday if he continued fulltime education or was serving appren- ticeship. The upper age limit for full- time students and apprentices was raised to 18 in 1956 and to 19 in 1964.

Changes in the rate of allowances have been infrequent. In 1952 it was increased to 8 shillings per week, and in 1956 the allowance for third and subsequent children was raised to 10 shillings and 17 shillings, respectively, and later in the year to18 shillings and £ 1, respectively. The family allowance is financed solely from general taxation. The allowance is taxable, as earned income, so that the value of the allowance declines as incomes and tax ratesrise.

National Insurance Act, 1966. The national Insurance act of 1966 introduced by a Labor government, extended the earnings- related principle to cover sickness, unemployment, and widows’ benefits. Again, no state subsidy was given, but no contracting out was permitted. All employed persons (and their employers) pay 0,5% of earnings from £ 9 to £ 30 per week. The act provides only for “short- term” earnongs- related benefits- essentially, payment of wage- related increment to basic flat- rate benefits during the first six months of sickness, unemployment, or widow- hood.

Redundancy Payments Act,1965. The only other addition to the pattern of provision laid down in 1948 was the introduction of a system of redundancy payments. Enacted in 1965, the system is financed solely from employers’ contributions in respect of each employee. The employee receives a lump- sum payment in the event of his loss of work through technological or other displacement. The act is relation to the employee’s continuous term of work with his employer, his age, and his earnings.

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