2 MAJORITY REPORT. of the present rate of 3 per cent. It should be noted that this proposal involves no change in the rate of 3 per cent. which is credited on reserve values. It is also worthy of observation, as bearing upon the Committees recommendation, that the interest income of Approved Societies is not subject to income tax, and that regard may consequently be had to the gross rate earned. 175. With reference to the average annual rates of sickness and disablement for which provision should be made, the Committee draw attention to the fact that while among both men and women the claims for sickness benefit have been below the ‘* expectation *’ of the present basis in the years 1919 to 1924 there are disquieting features in the course of the claims from year to year, especially among women. In the case of disablement benefit the Committee evidently look with concern upon the rapid increase in the claims which they have found and from which it appears that among both men and women the cost of this benefit in relation to the expectation, has doubled itself between 1919 and 1924. Tt is evident that the Committee have met with difficulty in dealing with these elements in the situation, and so far as women are concerned they have found themselves precluded from coming to a final decision. They propose, so far as relates to men, to retain the Manchester Unity Experience, 1893-97, on which the present basis in respect of sickness and disablement is founded, but to eliminate the addition of approximately 13 per cent. to the Manchester Unity rates for which that basis provides. In regard to women, they propose to discard the present basis and to substitute a new basis drawn from the experience of a large sample of the female insured population in the year 1923, with a loading of 10 per cent. to the sickness rates thus obtained. The explanation of the choice of a single year’s experience for this purpose instead of that of the three years 1921-23 which the Committee examined, is that the claims were rising steadily throughout the three years, with the result that the experience of 1923 was sensibly higher than the average of the whole period. The Committee explain that in fixing the loading at 10 per cent. they have had regard to certain small margins which they find to be available for the assistance of the Societies. 176. With reference generally to the experience of sickness and disablement claims which the Committee examined, they draw our attention to a Memorandum appended to their Report which contains the results of a study by the Government Actuary’s Department of some of the more difficult features which this experience presents. They consider that these results should be examined, with a view to effective action, by the responsible Departments, and we concur in this opinion. The features to which attention is directed are evidently widespread and they should receive the serious attention not only of the Departments