| AdminHistory | The Local Pension Committee was established in September 1908, under the terms of the Old Age Pensions Act of that year. David Lloyd George, as Chancellor of the Exchequer, was an opponent of the existing Poor Law, and wanted to 'lift the shadow of the workhouse from the homes of the poor'. To guarantee an income to people who were too old to work, Lloyd George introduced the Old Age Pensions Act, which provided between 1s and 5s a week to people over seventy on incomes that were not over 12s. To pay for these pensions, in 1909 Lloyd George announced what became known as the People's Budget, which increased government revenues by £16 million through rises in income tax, death duties and taxes on the ownership and sale of property.
The committee was structured in accordance with the advice of the Town Clerk, by establishing seven sub-committees, each one assisting in administering the Old Age Pensions Act within separate geographical areas. The number of sub-committees was eventually raised to ten, but by 1929, when the pensionable age of 65 was introduced, the number of claims had halved, so the number of sub-committees was reduced to five, which simply met in weekly rotation. These sub-committees dealt with much of the individual pension cases, whereas the main committee tended to deal with the overall financial figures, committee and sub-committee appointments, as shown in the committee minutes.
Originally, each sub-committee consisted of two members of the Council, a Guardian of the Poor, representatives from the Birmingham Trades Council, a Friendly Society, the City Aid Committee and a 'lady nominated by the Society for Promoting the Election of Women on Public Bodies. By 1932 the committee met annually, but was now attended by nine Councillors and the representatives from the same organisations.
The Pension Act was followed by the National Insurance Act in 1911, a measure that gave the British working classes the first contributory system of insurance against illness and unemployment. All wage-earners between sixteen and seventy had to join the health scheme. Each worker paid 4d (pence) per week, the employer added 3d and the state 2d. In return for these payments, free medical attention, including medicine was given. Those workers who contributed were also guaranteed unemployment benefits.
In 1919 and 1924, there were further Pensions Acts, which raised payments and the claim threshold. This was further enhanced by the Blind Persons Act, 1920, which granted pensions to the blind, upon attaining the age of 50. After the Old Age Pensions Act of 1936, Birmingham led the way in getting the ‘means tests’ levels raised due to the hardship that some pensioners were experiencing, which led to the passing of the National Insurance Act of 1946.
Under the National Assistance Act, 1948, the Local Pensions Committees were replaced for the administration of non-contributory old age pensions by the new National Assistance Boards, under the charge of the Minister of National Insurance. |