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APPENDIX A. 
I 
SECOND REPORT OF THE DEPARTMENTAL 
ACTUARIAL COMMITTEE. 
To the Right Honourable Lord LAWRENCE oF KINGSGATE, 
Chairman of the Royal Commission on National Health Insurance. 
My Lorp, 
‘We submit the following Report on the Questions referred to us in 
the Secretary’s letter of the 20th November, 1925: — 
I.—S1crNESs BENEFIT. 
1. We are asked to advise as to the cost of raising the standard rates 
of sickness benefit for men and women respectively to the rates of unem- 
ployment benefit. These rates are 18s. a week for a man and 15s. a week 
for a woman. We assume that in the first two years of insurance the 
present sickness benefit of 9s. and 7s. 6d. a week respectively, being one- 
half of the rates above stated, would be retained. We assume, further, 
that in the event of the sickness benefit being increased the rate of dis- 
ablement benefit would be increased to 9s. in the case of men, thus retain- 
ing the present relation between sickness and disablement benefits. In 
the case of women, where the available margin in the contribution is 
relatively very small, we assume that disablement benefit would remain 
at its present amount of 7s. 6d. a week. On this basis the rate of dis- 
ablement benefit would be half the rate of sickness benefit for both sexes. 
2. In paragraph 30 of our Report of 13th October, we set out the full 
contributions required on the assumption that existing benefits would be 
retained and that new charges taking the form of a payment throughout 
life of 7s. a year per insured man and 3s. 9d. a year per insured woman 
would be added to the liabilities. We now understand that the Com- 
mission has decided to recommend that charges in respect of medical 
benefit amounting to 3s. a year per insured person throughout life shall 
be placed on the ordinary benefit funds. Apart, therefore, from such 
further benefits as may be added to the scheme, the necessary contribu- 
tions to provide for seven-ninths of the liabilities would be as follows :— 
Benefit Fund ia 
Reserve Values ws 
Contingencies Fund 
on, 
Women. 
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The proposed extension of sickness and disablement benefit would add 
about £14,500,000 to the Reserve Values and would involve the following 
additions to the above contributions: — 
Benefit Fund 
Reserve Values 
“en. 
3 
Women, 
d. 
"58 
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