vices, under central and local contracts made by the Ministry, was 19, affecting approximately 5,000 patients and staff. Supplies of equipment and patient's clothing were obtained for these institutions under contracts made by H.M. Office of Works. Medical and surgical stores required by hospitals, clinics and medical boards, were delivered direct from contractors to the institutions as required, these supplies being obtained under contracts made by the War Office.

Supplies of stump socks, arm mitts, crutches, walking sticks and rubbers were purchased as required under central contracts for delivery to the Central Appliance Store located at the Ministry's Hospital, Orpington, Kent. The issues to pensioners from the store amounted during the year to over 140,000 of these articles.

The British Red Cross Society continued to supply games and comforts for the benefit of patients in hospitals, an amenity which is gratefully appreciated.

SPECIAL GRANTS COMMITTEE.

30. Allowances and Grants.--New allowances as follows were awarded by the Committee :

Allowances to supplement pension:

The value of the allowances in payment at 31st March, 1928, was £61,744 a year in respect of 1,264 officers and their dependants, £181 a a year in respect of 7 nurses and their dependants, and £418 a week in respect of 933 ex-non-commissioned ranks.*

The Committee made 838 new grants towards the cost of education of the children of deceased and disabled officers and men, and at the end of the year 5,629 such grants were in issue. In addition, similar grants under the Royal Warrant in respect of the children of deceased and disabled officers were administered with those under the regulations of the Committee, and at the end of the year 2,348 such grants were in issue, making a total

*The apparent disproportion as between officers and men is explained by the fact that allowances for widows and children of disabled officers are granted by the Committee on a discretionary basis, whereas in the case of men of non-commissioned rank allowances are paid under the Royal Warrant and not by the Special Grants Committee.

of 7,977. These grants, which are in respect of school fees and expenses, represent a total annual expenditure of approximately £150,000.

31. Questions of Forfeiture.-The Committee decided in 384 cases (including 51 in which there had been administration in trust) that pension had become forfeited; and in 189 instances (56 being cases in which pension had previously been suspended) administration in trust was recommended. In 268 cases it was found possible to re-issue pension direct, after a period of administration.

There were 768 fresh cases involving the question of forfeiture referred to the Committee during the year. It was held in 367 of these that the allegations had not been substantiated, or that the facts did not necessitate either forfeiture or administration in trust.

32. Care of Children.-Under Section 9 of the War Pensions (Administrative Provisions) Act 1918, it is the duty of the Minister to make provision for the care of children of men who have died as a result of their service, in cases where they are found to be suffering from neglect or want of proper care. As authorised by the Act, the Minister delegated these functions. to the Special Grants Committee.

The number of children under care at the end of the year was 2,566 as against 2,925 at the end of the preceding year. Of these, 505 had been committed to the care of the Minister by Orders of Court under the Children Act, 1908, 387 having been committed under Section 21, and the remainder under Section 58 of that Act. The general policy of the Committee is to place children in private families under supervision, and this was continued wherever that course was practicable and desirable in the interest of the children. At the end of the year 1,871 were so placed. Of the remainder, 121 were in special institutions because of mental or physical infirmities, while 574 were in general institutions either temporarily or for some particular reason such as training or medical attention.

33. Motherless Children.-There were were 14,048 motherless children (including illegitimate children not in the care of their mothers) under supervision at the end of the year, a decrease of 1,675 on the number at the 31st March, 1927. The majority (viz., 12,121) were in the care of relatives. 955 were with guardians who were not relatives, whilst the remainder were in schools, training homes or other institutions.

EXPENDITURE.

34. General Expenditure.-The expenditure of the Ministry for the year amounted approximately to £59,800,000, being £3,391,867 less than that for the preceding year.* Details for

The approximate total net expenditure since the establishment of the Ministry to 31st March, 1928, was £788,000,000.

the year under review, with comparative figures for the preceding year, are as follows:

The diminution in expenditure under heading (i) was due to reduction in the number of staff, made possible by a decline in the volume of administrative work. The decreased expenditure shown under the remaining headings resulted from the continued reduction in the total number of beneficiaries owing to deaths, re-marriage of widows, attainment by children of the age at which allowances cease, and a falling off in the number of pensioners undergoing treatment.

35. Expenditure on Hospitals and Clinics.-Expenditure on the Ministry's hospitals and clinics showed a further decline as indicated by the following comparative figures:

The final figures are published in the appropriation account for the year.

The average cost per occupied bed per day throughout 1927-23 again showed a decrease as compared with previous years.

Payments in respect of treatment of pensioners in civil hospitals amounted to £386,000 as compared with £402,000 during the preceding year and £443,000 during 1925-26.

36. Contract Supplies.--The value of hospital supplies purchased during the year amounted to £110,303, as compared with £148,185 during 1926-27. Of the former amount, £93,890 was in respect of food, and £16,413 in respect of medical stores.

ESTABLISHMENT.

37. Staff. The total staff employed by the Ministry at the end of the year was 7,432, of whom 4,618 were men and 2,814 women. Of the total number, 2,038 (1,178 men and 860 women) were established civil servants, and 1,931 (men) permanent unestablished or "P" Class civil servants, leaving a residue of 3,463 temporary employees, nearly two-thirds of whom were employed in Ministry hospitals. The number of ex-sevice men employed was 4,451, representing 96.4 per cent. of the total male staff, including 2,510 men (representing 54.4 per cent. of the total male staff) suffering from disabilities contracted through war service. The total staff employed was 1,698 less than the number employed at the end of the previous year, and approximately 24,500 less than that for the year 1920, when the Ministry staff reached its maximum figure.

LOCAL ADMINISTRATION.

38. War Pensions Committees and Area Offices.-The term of office of members of the existing War Pensions Committees expires at various dates during the year 1928, and the Minister, after careful consideration, has decided upon the general reconstitution of Committees for a further period of 3 years. The volume of work to be performed by War Pensions Committees is still diminishing and is being met in various ways, e.g., the lengthening of intervals between meetings, and the elimination of General Purposes Sub-Committees, and it is at present contemplated that it may be possible in suitable cases to amalgamate neighbouring Committees.

The contraction in the volume of work performed by the local offices of the Ministry has made it possible to effect a reduction in the number of area offices and sub-offices. During the year 41 whole-time sub-offices were replaced by part-time sub-offices, while 52 part-time offices have been closed. The War Pensions Committees concerned were consulted in advance regarding these changes, which effected substantial economies in staff, office accommodation, &c., while maintaining efficient administration and avoiding any hardship to pensioners and applicants. The comparative figures for the two years are as follows:

39. Meetings of Groups of Chairmen of War Pensions Committees. The practice of holding meetings of groups of Chairmen of War Pensions Committees was continued. Nine such meetings were held either by the Minister or the Parliamentary Secretary at various centres throughout the country, and any matters of difficulty which had arisen in the course of the preceding year were discussed.

rendered by

40. Voluntary Workers. The assistance Voluntary Workers continued to be a notable feature of the Ministry local organization. The total number of Voluntary Workers at the end of the year was 17,209, of whom 13,875 were not members of Committees, as compared with 17,091 and 13,801 for the previous year.

41. The Central Advisory Committee met during the year. Among the subjects discussed was the alteration in the method of payment. of War pensions.

42. The Standing Joint Committee for ex-service questions, composed of representatives of Government Departments and ex-officers and men, also met during the year.

43. The Officers' Friend Branch continued to advise and assist officers and their relatives.

44. Royal Warrants, &c.—The following amending Warrants. &c., have been issued:

(1) Royal Warrant of 4th November, 1927, for Army Officers, &c.; and corresponding Orders in Council, as regards Naval Officers and Warrant Officers; and Order by His Majesty, as regards Air Force Officers.

(2) Royal Warrant of 4th November, 1927; and corresponding Order in Council, as regards Seamen and Marines; and Order by His Majesty, as regards airmen.

These Warrants, &c., merely gave effect to minor amendments in the interest of verbal accuracy.

23rd November, 1928.

G. C. TRYON,

Minister of Pensions.