Social Security Act

Various forms of governmental assistance that supported family life began: sickness and unemployment benefits, subsidised medical care, state housing schemes, mortgage relief, and later a universal family benefit.^[i] The Act brought heath and income maintenance together in a broad framework of citizenship entitlement by providing free GP services, hospital services, pharmaceutical services, and an expanded school dental service.^[ii] The old-age pension became a means-tested pension of thirty shillings a week for those over 60 (55 for single women) with a ‘universal superannuation’ of four shillings a week from the age of 65 for those whose income and property exceeded the means test levels.^[iii]

Child welfare officers developed ways of aiding women financially, such as ‘fostering’ their children with them and paying board rates, and invoking the provisions of the Social Security Act 1938 to provide emergency and other benefits.^[iv]

Section 72(2) of the Social Security Act allowed the Social Security Commission to reduce the rate of benefit if payment of the maximum benefit was seen to be not ‘necessary for the maintenance of the beneficiary’ which was used to continue the prejudice against Māori beneficiaries and keep their benefit rates reduced.^[v]

The underlying principle of the Act was that every citizen had a right to a reasonable standard of living and that it was a community responsibility to ensure that its members were safeguarded against the economic ills from which they could not protect themselves.