{{Infobox UK legislation }} The Friendly Societies Act 1875 (38 & 39 Vict. c. 60) was an Act of the Parliament of the United Kingdom passed by Benjamin Disraeli's Conservative government following the publication of the Royal Commission on Friendly Societies' Final Report to consolidate and amend enactments relating to friendly societies. It was one of the Friendly Societies Acts 1875 to 1895. The act encouraged friendly societies to register with the Registrar of Friendly Societies by granting them the legal right to own land and property in the name of their trustees and the power to take out legal proceedings, in return for registration. Registered societies were subject to regulation: for example they were required to submit returns to the Registrar every five years which gave details of their financial affairs and in-force business which could be used by the Registrar to evaluate their assets against their liabilities under life assurance, annuity and sickness business. Friendly societies paid de facto old-age pensions in the form of sickness benefit, and the Act defined "old age" as 50 and above. Although a court ruled that "natural decay" was not "sickness" the majority of friendly societies did not accept this ruling as they were in competition with each other, and wanted to continue paying pensions to attract new members. The act allowed friendly societies considerable self-management "but insured the adoption of sound rules, effective audit, and rates of payment sufficient to maintain solvency. It established the friendly societies, and with them the people's savings on a satisfactory basis".

Background

The Friendly Societies Act 1829 (10 Geo. 4. c. 56) and the Friendly Societies Act 1855 (18 & 19 Vict. c. 63) consolidated and amended enactments relating to friendly societies. In 1870, a Royal Commission was appointed to inquire into the working of friendly societies, making a report with recommendations for further consolidation and amendment.

Passage

Leave to bring in the Explosive Substances Bill was granted to the Chancellor of the Exchequer, Stafford Northcote, the Home Secretary, R. A. Cross and William Henry Smith on 8 February 1875. The bill had its first reading in the House of Commons on 8 February 1875, presented by the Chancellor of the Exchequer, Stafford Northcote. The bill had its second reading in the House of Commons on 15 March 1875 and was committed to a committee of the whole house, which met on 31 May 1875, 1 June 1875, 3 June 1875 and 4 June 1875 and reported on 4 June 1875 with amendments. The amended bill was considered on 22 June 1875, with further amendments. The amended bill had its third reading in the House of Commons on 24 June 1875 and passed, without amendments. The bill had its first reading in the House of Lords on 25 June 1875. The bill had its second reading in the House of Lords on 8 July 1875, and was committed to a committee of the whole house, which met on 15 July 1875 and reported on 20 July 1875, with amendments. The amended bill was considered on 20 July 1875, with further amendments. The amended bill had its third reading in the House of Lords on 22 July 1875 and passed, with amendments. The amended bill was considered by the House of Commons on 30 July 1875. A committee was appointed to draw up reasons for several disagreements, which reported on 31 July 1875, the amendments of which were not disagreed to by the House of Lords on 3 August 1875. The bill was granted royal assent on 11 August 1875.

Provisions

The act consolidated provisions relating to friendly societies, and made amendments.

Repealed acts

Section 5 of the act repealed 13 enactments, listed in the first schedule to the act, but provided that this would not affect any societies incorporated or acts done under that act before repeal. Section 6 of the act provided that every society incorporated under previous acts would continue to be valid.

Legacy

The act was described as a Consolidation Act. In 1889 Mr Braxton Hicks, the London coroner, wrote a letter to The Times about the dangers of child life insurance. He wrote that the insurances act as a temptation to the parents to neglect them, or to feed them with improper food, and sometimes even to kill them, as in the excessively numerous cases of "over-laying" or suffocating in bed. The act was wholly repealed by the Collecting Societies and Industrial Assurance Companies Act 1896 (59 & 60 Vict. c. 26)