Another Social Security Scheme
The scheme of family allowances and social security prepared by Lady Rhys-Williams, and adopted by the Women's Liberal Federation last November, has now been commended to the study of the Liberal Party by the Council of the Party Organisation. It has some claim to be simpler as well as more 'comprehensive than the Beveridge proposals. It is now republished in an amended form, with full statistical trimmings and the solid backing of Liberal economists. Its essential features are (i) a self-supporting system linking social security with income-tax allowances, and a weekly insurance payment of 2s. Income-tax would be deducted at a standard rate from all incomes, including wages ; (2) allow- ances to be paid in cash for all housewives (Li a week), children (ins. a week each), and old persons (Li a week), without means test ; (3) personal allowance for wage-earners to be paid only as offsets against income-tax due. Unemployed workers would draw their allowance from the Insurance -Fund. The finance of this ingenious scheme is bound to arouse discussion. It would effect a redistribution of income, not merely as at present as between rich and poor, but also between the individuals at each level of income in proportion as they have, or have not, dependants to support. If adopted, it would fill in some of the gaps left by the Beveridge plan. Like the Beveridge proposals, it would need to be supplemented by some special arrangement if the family problems of the ki,000 to L2,000 a year class are to be attacked.
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