(b)
(ii) Welfare Allowance
A "disability and infirmity allowance" was introduced
in 1973. It provides non-means tested financial assistance
to the severely disabled and elderly. It is proposed to extend the scheme to cover those in residential, institutional care, to lower the age limit from 75 to 70, in two stages, and to introduce a third allowance payable to the chronically sick (defined as those incapable of work for a period of over eighteen months).
The Sickness, Injury and Death Benefit Scheme
The proposed scheme would be semi-voluntary and contributory. Employees would be under no obligation to join the scheme; but employers could not contract out, if their workers wished to join, without providing comparable benefits through a private scheme.
The aim of the proposals is to provide assistance to those unable to work due to sickness or injury and to pay a limited sum to the
heirs of any participant in the scheme who dies before the age of 60. The suggested rate of contribution is 4% of an employee's salary, shared equally between employer and worker.
4. I have discussed the proposals with Mr Heppell, the Assistant
Secretary from the DHSS who has just returned from Hong Kong where
he has been advising them on the drawing up of the new social
security scheme. I would have favoured a higher level of contri-
bution and, possibly, higher payments from employers than from their employees; however, Mr Heppell accepts the Hong Kong Government's view that this might lessen public support for the proposals. It is expected that 3 years will be needed before the scheme can be in full operation; while we have asked the Governor to try and arrange quicker implementation of the proposals, Mr Heppell has pointed out that the same time scale has proved necessary in the UK.
5. This new scheme is the most important aspect of the Green Paper from our point of view. Both the OLA and Mr Heppell accept that it is a useful first step and that it goes as far as is
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