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The Social Security Act 1938 is a New Zealand Act of Parliament concerning unemployment insurance which established New Zealand as a welfare state. This act is important in the history of social welfare, as it established the first ever social security system in the world. [1]
After winning the 1935 election the newly elected First Labour Government immediately issued a Christmas bonus to the unemployed. [2] However, a regular unemployment benefit was not introduced until the passing of the Social Security Act in 1938; that benefit was "payable to a person 16 years of age and over who has been in New Zealand for at least 12 months and is unemployed, is capable of and willing to undertake suitable work, and has taken reasonable steps to secure employment" [3]
New Zealand did have several extant social welfare benefits started by the Liberal Government which implemented a tax-funded means tested old-age pension in 1898 and widows benefit in 1911. A limited form of payment to the unemployed was created during the Great Depression of the early 1930s by the United/Reform Coalition. [4]
The development of social security policy, a commitment which all Labour MPs were enthusiastic about, but was itself a subject of considerable division within the government. Finance Minister Walter Nash initially proposed a contributory, national insurance type scheme though the caucus rejected it. Arnold Nordmeyer chaired both the caucus committee and the parliamentary select committee which were set up to consider the matter more in depth. After much discussion and debate the committees recommended a scheme for a means-tested pension, a universal superannuation, provisions for universal medical benefits (hospital treatment, maternity benefits and general practitioner consultations) which would all to be financed from direct taxation. At Nordmeyer's insistence, both the health and pensions schemes were combined into one measure. [5]
The recommendations given became the basis of what was to be incorporated in the Social Security Act.
Savage gave a broadcast to the nation on 2 April 1938 outlining the Labour government's intentions and details of the proposed bill. He outlined the details of a comprehensive scheme of social security to provide "a condition of social security unsurpassed in any other country in the world". [6] He stressed that the scheme had been carefully costed and was easily affordable to allay fears of tear away government spending. The details specified the following:
The scheme was to be funded by raising the existing level of income tax on wages from 8d in the pound to 1s and continuing the existing levy of £1 on every man over 20 years of age. To implement and administer all of the governments promises the Social Security Department would be established which would absorb the existing Pensions Department as well as the Employment Division of the Department of Labour. Savage also announced that the bill would contain a provision that it would not come into force until 1 April 1939, thereby giving the opposition National Party the opportunity to revoke it if they won the election scheduled for October that year as an inducement to re-elect Labour for another term. [7]
Reverend W. H. A. Vickery (the mayor of Kaiapoi) sent Savage a letter suggesting he use the term "applied Christianity" to describe the government's scheme, which was adopted by Savage. [8] The opposition National Party were highly critical of the scheme raising concerns over the expense and criticizing the increased taxation that would result. National Party leader Adam Hamilton said Labour was wrong to claim that the benefits were free as everyone would be in the tax-gatherer's net and have to pay for everything they received. [4] Prominent National MP Sidney Holland unsuccessfully parodied Savage's description calling it "applied lunacy", which earned himself public displeasure. The scheme was also criticized by the radical-left in the Labour Party with MPs Gervan McMillan and Arnold Nordmeyer feeling the government had not gone far enough. [9]
The largest apprehension came from the New Zealand Branch of the British Medical Association (BMA) over the implementation of free general practitioner consultations. Doctors refused to accept a state fee for their services arguing that the doctor–patient relationship was dependent on direct payments from the patient. It would not be until 1941 that a compromise was reached where doctors charged patients directly and the patient could then claim a social security refund. [5]
The initiative received attention internationally as well. A 1939 government report in the United States of America for the Roosevelt administration described New Zealand as having made "the first attempt on a national scale to combine under one integrated system of economic security protection against all hazards which are covered by social insurance in other countries". [4]
The Social Security Act (as intended) became one of the main issues at the 1938 election campaign. Savage had used the act to set the agenda for the election which he thought would virtually guarantee Labour victory. Indeed, Labour was decisively re-elected increasing its share of the votes by 10% from 45 to 55 percent, though it actually did not gain any extra seats. [10] As predicted, the expense to fund the scheme was high. It was estimated to cost £17.85 million in its first year, up from just £7.5 million per-annum spent on the previous social services. [4]
The policies and emphases of the Social Security Act would set the social pattern of New Zealand for several generations. New Zealand was to remain a government regulated welfare state until the early 1990s when new neo-liberal policies (labeled Ruthanasia) superseded much of the surviving policies of the First Labour Government. [11]
A pension is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension may be a "defined benefit plan", where a fixed sum is paid regularly to a person, or a "defined contribution plan", under which a fixed sum is invested that then becomes available at retirement age. Pensions should not be confused with severance pay; the former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement.
Michael Joseph Savage was a New Zealand politician who served as the 23rd prime minister of New Zealand, heading the First Labour Government from 1935 until his death in 1940.
Social services are a range of public services intended to provide support and assistance towards particular groups, which commonly include the disadvantaged. They may be provided by individuals, private and independent organisations, or administered by a government agency. Social services are connected with the concept of welfare and the welfare state, as countries with large welfare programs often provide a wide range of social services. Social services are employed to address the wide range of needs of a society. Prior to industrialisation, the provision of social services was largely confined to private organisations and charities, with the extent of its coverage also limited. Social services are now generally regarded globally as a 'necessary function' of society and a mechanism through which governments may address societal issues.
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed, as opposed to social assistance programs which provide support on the basis of need alone. The International Labour Organization defines social security as covering support for those in old age, support for the maintenance of children, medical treatment, parental and sick leave, unemployment and disability benefits, and support for sufferers of occupational injury.
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a compulsory governmental insurance system, not taxes on individual citizens. Depending on the jurisdiction and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.
Sir Arnold Henry Nordmeyer was a New Zealand politician. He served as Minister of Finance (1957–1960) and later as Leader of the Labour Party and Leader of the Opposition (1963–1965).
Harold Wilson was appointed Prime Minister of the United Kingdom by Queen Elizabeth II on 16 October 1964 and formed the first Wilson ministry, a Labour government, which held office with a thin majority between 1964 and 1966. In an attempt to gain a workable majority in the House of Commons, Wilson called a new election for 31 March 1966, after which he formed the second Wilson ministry, a government which held office for four years until 1970.
The Old-Age Pensions Act 1908 is an Act of Parliament of the United Kingdom of Great Britain and Ireland, passed in 1908. The Act is often regarded as one of the foundations of modern social welfare in both the present-day United Kingdom and the Irish Republic and forms part of the wider social welfare reforms of the Liberal Government of 1906–1914.
Social welfare has long been an important part of New Zealand society and a significant political issue. It is concerned with the provision by the state of benefits and services. Together with fiscal welfare and occupational welfare, it makes up the social policy of New Zealand. Social welfare is mostly funded through general taxation. Since the 1980s welfare has been provided on the basis of need; the exception is universal superannuation.
The Liberal Government of New Zealand was the first responsible government in New Zealand politics organised along party lines. The government formed following the founding of the Liberal Party and took office on 24 January 1891, and governed New Zealand for over 21 years until 10 July 1912. To date, it is the longest-serving government in New Zealand's history. The government was also historically notable for enacting significant social and economic changes, such as the Old Age Pensions Act and women's suffrage. One historian described the policies of the government as "a revolution in the relationship between the government and the people".
The Ministry of Social Development (MSD) (Māori: Te Manatū Whakahiato Ora) is the public service department of New Zealand charged with advising the government on social policy, and providing social services.
The Third Labour Government of New Zealand was the government of New Zealand from 1972 to 1975. During its time in office, it carried out a wide range of reforms in areas such as overseas trade, farming, public works, energy generation, local government, health, the arts, sport and recreation, regional development, environmental protection, education, housing, and social welfare. Māori also benefited from revisions to the laws relating to land, together with a significant increase in a Māori and Island Affairs building programme. In addition, the government encouraged biculturalism and a sense of New Zealand identity. However, the government damaged relations between Pākehā and Pasifika New Zealanders by instituting the Dawn Raids on alleged overstayers from the Pacific Islands; the raids have been described as "the most blatantly racist attack on Pacific peoples by the New Zealand government in New Zealand’s history". The government lasted for one term before being defeated a year after the death of its popular leader, Norman Kirk.
The Second Labour Government of New Zealand was the government of New Zealand from 1957 to 1960. It was most notable for raising taxes on alcohol, cigarettes and petrol, a move which was probably responsible for the government lasting for only one term. It was headed by the Prime Minister Walter Nash.
The First Labour Government of New Zealand was the government of New Zealand from 1935 to 1949. Responsible for the realisation of a wide range of progressive social reforms during its time in office, it set the tone of New Zealand's economic and welfare policies until the 1980s, establishing a welfare state, a system of Keynesian economic management, and high levels of state intervention. The government came to power towards the end of, and as a result of, the Great Depression of the 1930s, and also governed the country throughout World War II.
Social security, in Australia, refers to a system of social welfare payments provided by Australian Government to eligible Australian citizens, permanent residents, and limited international visitors. These payments are almost always administered by Centrelink, a program of Services Australia. In Australia, most payments are means tested.
Social security in India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government at the federal and the state level and is divided into three categories: non-contributory and tax-payer-funded, employer-funded and lastly, joint-funded. The system has since been universalised with the passing of The Code on Social Security, 2020. These cover most of the Indian population with adequate social protection in various situations in their lives. The Indian social security system is considered to be one of the most generous in the world amongst developing countries. The Central Government of India's social security and welfare expenditures are a substantial portion of the official budget and as well as the budgets of social security bodies, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses the unique identity number (Aadhar) that every Indian possesses to distribute welfare measures in India. The comprehensive social protection system of India can be categorised as the follows: social assistance and mandatory social security contributory schemes mostly related to employment. The Code on Social Security, 2020 is part of the Indian labor code that deals with employees' social security and have provisions on retirement pension and provident fund, healthcare insurance and medical benefits, sick pay and leaves, unemployment benefits and paid parental leaves. The largest social security programs backed by The Code on Social Security, 2020 are the Employees' Provident Fund Organisation for retirement pension, provident fund, life and disability insurance and the Employees' State Insurance for healthcare and unemployment benefits along with sick pays. There is also the National Pension System which is increasingly gaining popularity. These are funded through social insurance contributions on the payroll. While the National Food Security Act, 2013, that assures food security to all Indians, is funded through the general taxation. With the passing of the social security code by the Indian Parliament, the fragmented social security system was universalised, resembling the social security systems of most developed countries.
The Beveridge Report, officially entitled Social Insurance and Allied Services, is a government report, published in November 1942, influential in the founding of the welfare state in the United Kingdom. It was drafted by the Liberal economist William Beveridge – with research and publicity by his wife, mathematician Janet Beveridge – who proposed widespread reforms to the system of social welfare to address what he identified as "five giants on the road of reconstruction": "Want… Disease, Ignorance, Squalor and Idleness". Published in the midst of World War II, the report promised rewards for everyone's sacrifices. Overwhelmingly popular with the public, it formed the basis for the post-war reforms known as the welfare state, which include the expansion of National Insurance and the creation of the National Health Service.
The "Dancing Cossacks" television advertisement was a 1975 electoral advertisement for the New Zealand National Party, produced by advertising agency Colenso. The first half of the advertisement was animated by Hanna-Barbera, with the second half featuring National Party leader Robert Muldoon. The advert was produced to be highly critical of the governing New Zealand Labour Party's recently introduced compulsory superannuation scheme, implying the scheme would eventually turn New Zealand into a Soviet-style communist state, and urged people to vote for National in the upcoming general election.
The Department of Labour and Employment of state of Tamil Nadu is one of the Department of Government of Tamil Nadu
South Korea's pension scheme was introduced relatively recently, compared to other democratic nations. Half of the country's population aged 65 and over lives in relative poverty, or nearly four times the 13% average for member countries of the Organisation for Economic Co-operation and Development (OECD). This makes old age poverty an urgent social problem. Public social spending by general government is half the OECD average, and is the lowest as a percentage of GDP among OECD member countries.
23 March 1872 – 27 March 1940 Prime Minister of New Zealand (1935–40) • Leader of the Labour Party (1933–40) • Member of Parliament for Auckland West (1919–40) | ||
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