Social insurance and allied services : memorandum on the Beveridge Report
1943-02-10 1943 1940s 24 pages 13. to £651 millions as against £278 millions in 1938 - an increase of £373 millions, of which £66 millions would be payable by Employers and £307 millions by the Taxpayer. (41) It is therefore clear on these facts...
| Institution: | MCR - The Modern Records Centre, University of Warwick |
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| Language: | English English |
| Published: |
10 February 1943
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| Online Access: | http://hdl.handle.net/10796/7DD659E2-15A8-4166-80B1-9026026184D5 http://hdl.handle.net/10796/0347DE1F-1467-4256-A1E9-5242708F7D4C |
| Summary: | 1943-02-10
1943
1940s
24 pages
13. to £651 millions as against £278 millions in 1938 - an increase of £373 millions, of which £66 millions would be payable by Employers and £307 millions by the Taxpayer. (41) It is therefore clear on these facts that the "Beveridge" proposals would involve, not only a heavy additional burden on industry in the form of insurance contributions and also a drain on its financial resources through taxation, but would also involve a material redistribution of personal incomes. The incidence and effect of that redistribution on the personal income of the individual citizen would, of course, depend on the extent to which the additional revenue required were raised by Direct or Indirect taxation. It will, however, serve to illustrate the possible extent to which such a redistribution of Incomes would be carried under the "Beveridge" plan if it is pointed out that if a sum equal in magnitude to the increased burden ultimately to be borne by the Taxpayer in 1965 (i.e. £307 millions) had had to be raised by Income Tax in 1938, it would have meant the raising of the standard rate of Income Tax for that year from 5/6d to approximately 10/- in the £ in order to meet the "Beveridge" plan alone. (42) Further, it has to be noted that the Government Actuary in his Memorandum (pages 184 & 201) has made it clear, not only that his estimate as to the cost of Health Benefits is "definitely speculative", but also that the cost of the "Beveridge" plan in respect of Pensions would still be increasing substantially after 1965. (43) Further, the "Beveridge" proposed scales of Benefit have been drawn up on the basis that the post-war cost-of-living figure will not be more than 25% higher than it was in 1938 and therefore slightly less than it is today. While Sir William Beveridge has made it clear that he does not regard these scales of Benefit as sacrosanct, he has equally made it clear that he does regard as sacrosanct the principle of Benefits being paid at a uniform rate and on a subsistence level if his object is to be achieved. If, therefore, the post-war cost-of-living should, as it well may, prove to be higher than his estimate, the scales of Benefit and the cost of the scheme would have to be correspondingly increased. (44) Further, it should be noted that Sir William states in the Report (page 121) that/
200/B/3/2/C216/5/50 |
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| Physical Description: | TEXT |