24 DECEMBER 1943, Page 2

Social Security—Another Scheme

Social Security schemes as a method of redistributing the national income to the advantage of the neediest are in the air. Obviously there are many ways by which such redistribu- tion could be arranged, and a peculiarly' ingenious one has been devised by Lady Rhys Williams, and adopted by the Executive of the Women's Liberal Federation. It provides that maintenance allowances would come from two sources. Wage-earners would get unemployment or disability allowances provided by flat-rate insurance premiums ; but wives, children and other dependants would receive continuous allowances from income tax payments— every wife or housekeeper getting £r a week, and every child itos. It is calculated that these services, with the other social services, could be paid for out of an income tax at 7s. in the £ on all incomes. This is estimated on a very sanguine basis, since it assumes a national income almost equal to that of 1942-43, when there was no unemployment and millions of additional women workers were in gainful employment. The large- assumption also is made that other national expenditure could be met out of Sur-tax, Estate Duties and indirect taxation. This generous scheme has the merit of simplicity, but its financial basis needs a searching examination.