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Catalogue Reference:CAB/24/171
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TBTS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY S GOVERNMENT.
f
MEMORANDUM FOR THE CABINET.
UNEMPLOYMENT BENEFIT.
MEMORANDUM BY THE MINISTER OF LABOUR.
ST.
5 (25).
1.
The Unemployment I n s u r a n c e A c t p a s s e d o n 1 s t
1 9 2 4 , made i t
one o f t h e c o n d i t i o n s
unemployment b e n e f i t
t h a t the
30
contributions
insurable
(i.e,,
employment
s h o u l d have b e e n employed
i n each of
July.
of
"extended"
should have paid at
s i n c e the beginning of the f i r s t
"Insurance Years".
f o r the r e c e i p t
whether "standard" or
individual applicant
August,
least
in
separate calendar
3 0
o f t h e two
wee.ks.*J
preceding
The " I n s u r a n c e Y e a r " r u n s from J u l y
The p e r i o d d u r i n g w h i c h t h e 3 0 c o n t r i b u t i o n s
h a v e b e e n p a i d i s t h u s from 2 y e a r s ,
to
must
a s a minimum, t o 3 y e a r s ,
a s a maximum, a c c o r d i n g t o t h e t i m e o f y e a r a t w h i c h t h e
question arises;
at present
(and up t o J u l y n e x t ) i t
t h e p e r i o d from t h e b e g i n n i n g o f J u l y ,
A/- v."­ '
[;A
'"'
' ' :
'
of the c l a i m .
;
2.
Before t h e Act of August,
is
1922, t o the date
'
' W ' A-VA
'i
:
:
!;
1 9 2 4 , was p a s s e d
:
the
c o r r e s p o n d i n g r e q u i r e m e n t was t h e payment o f a t l e a s t
contributions
a t any t i m e
(i.e,,
l i m i t o f t i m e )j t h i s r e q u i r e m e n t
"covenanted" b e n e f i t
3.
n o t w i t h i n any
12
specified
moveover a p p l i e d o n l y
and n o t t o " u n c o v e n a n t e d "
A p e r i o d o f t r a n s i t i o n was d e a r l y
a p p l i c a t i o n o f t h e new r e q u i r e m e n t .
to
benefit.
necessary for
The A c t
the
accordingly
a u t h o r i s e s t h e M i n i s t e r o f L a b o u r d u r i n g t h e p e r i o d up t o
1st
O c t o b e r , 1 9 2 5 t o d i s p e n s e w i t h c o m p l i a n c e w i t h t h e new
r e q u i r e m e n t i n any c a s e i n w h i c h h e t h i n k s f i t
t o do
so.
From 1 s t O c t o b e r , 1 9 2 5 , t h e new r e q u i r e m e n t comes f u l l y
-
f o r c e , w i t h o u t power o f
mitigation.
-1­
into
4,
In accordance w i t h the i n s t r u c t i o n s
predecessor,
full
g i v e n b y my
a d v a n t a g e was t a k e n o f t h e
temporary
p o w e r t o w a i v e c o m p l i a n c e w i t h t h e new r e q u i r e m e n t , and
r e q u i r e m e n t h a s i n f a c t b e e n up t o t h e p r e s e n t o f
or no e f f e c t ,
although of course a l l the other
w i t h regard t o the genuineness
t o be c a r e f u l l y a p p l i e d .
o f c l a i m s have
little
tests
continued
On coming I n t o o f f i c e
I
e x a m i n e d t h e p o s i t i o n and came t o t h e c o n c l u s i o n t h a t
w o u l d n o t be a d v i s a b l e
it
o r p o s s i b l e t o make a n y c h a n g e
d u r i n g the s t r e s s of w i n t e r unemployment.
I feel,
however,
t h e t i m e h a s now n e a r l y come when we s h o u l d b e g i n t o
t h e new r e q u i r e m e n t t o a t a n y r a t e
some a p p r e c i a b l e
o f t h e c a s e s i n t e n d e d t o be c o v e r e d b y i t .
necessary because
this
This
apply
number
Is
­
(a) It is i n m o s t cases i n t r i n s i c a l l y desirable to
b a s e t h e q u a l i f i c a t i o n f o r b e n e f i t o n payment o f
a t l e a s t a s m a l l number o f c o n t r i b u t i o n s a t a
c o m p a r a t i v e l y r e c e n t d a t e j and
( b ) t h e new r e q u i r e m e n t i s , u n d e r e x i s t i n g l e g i s l a t i o n ,
t o come i n t o f u l l f o r o e o n 1 s t O o t o b e r n e x t , and
u n l e s s some a p p r o x i m a t i o n t o i t I s r e a c h e d b e f o r e
t h a t d a t e t h e numbers d e p r i v e d o f b e n e f i t by i t a t
one b l o w w i l l be s o l a r g e a s t o make i t s a p p l i c a t i o n
impossible.
5.
To shew t h e e f f e c t
mention that i f applied
quarter of those
o f t h e new r e q u i r e m e n t I
should
f u l l y now I t w o u l d c u t o f f a b o u t one
in benefit,
or 2 5 0 , 0 0 0 p e r s o n s .
Large
numbers o f t h e m w o u l d b e workmen I n e n g i n e e r i n g and
s h i p b u i l d i n g who p a i d c o n t r i b u t i o n s
s t e a d i l y up t o
1920
or 1 9 2 1 b u t h a v e b e e n a l m o s t c o n t i n u o u s l y u n e m p l o y e d
6,
The a c t i o n w h i o h I h a v e i n mind t o t a k e i s t o l a y
down t h a t ,
benefit
since,
exoept
i n t h e c a s e of d i s a b l e d
w i l l n o t be p a y a b l e u n l e s s
either
ex-Service
men,
it
( 1 ) 8 c o n t r i b u t i o n s have been paid s i n c e
beginning of the f i r s t
Insurance
w i t h i n a p r e c e d i n g p e r i o d of from 2
Years ( i . e , ,
3 years)?
o f t h e two p r e c e d i n g
the
to
or
( 2 ) a t o t a l o f 30 c o n t r i b u t i o n s h a s b e e n p a i d a t any
time.
I insert
the second of t h e s e
alternatives
in
to cover the case p a r t i c u l a r l y of the engineering
s h i p b u i l d i n g workman who h a s had l i t t l e
order
or
o p p o r t u n i t y o f work
during the l a s t 2 or 3 y e a r s .
As r e g a r d s d i s a b l e d e x - S e r v i c e men I p r o p o s e t o
t h e L o c a l Employment Committees t o c o n s i d e r s p e c i a l l y
c a s e s i n w h i c h t h e new c o n d i t i o n s a r e n o t s a t i s f i e d ,
when t h e C o m m i t t e e come t o t h e c o n c l u s i o n t h a t t h e
to satisfy
the conditions
i s due t o t h e man's
any
and
failure
disability
and recommend t h a t b e n e f i t
s h o u l d be g r a n t e d , t h i s
be d o n e .
purpose I include
For t h e p r e s e n t
will
among " d i s a b l e d
men" a l l t h o s e who a r e n o w , o r h a v e a t any t i m e b e e n ,
r e c e i p t of a d i s a b i l i t y
7.
p e n s i o n i n r e s p e c t o f war
The number o f c a s e s
ask
i n which b e n e f i t w i l l
in
service.
be
s t o p p e d u n d e r t h i s p r o p o s a l i s n o t p r e c i s e l y known b u t
I s n o t l i k e l y t o be l a r g e ,
a t a maximum.
s a t i s f y the
- not more, probably,
than 15,000,
Most o f t h o s e now o n b e n e f i t who do n o t
s u g g e s t e d c o n d i t i o n s a r e d i s a b l e d men and t h e y
are n o t l i k e l y
t o be a f f e c t e d
i n the main.
In f a c t ,
s h o u l d be a p p r e c i a t e d t h a t t h e v a l u e o f t h e p r e s e n t
l i e s not in i t s
benefit,
actual effect
but i n i t s
administration;
being a f i r s t
l e g i s l a t i o n postponing the date
s t e p towards
on
sounder
pass
( 1 s t O c t o b e r , 1 9 2 5 ) when
i a t o come f u l l y
into force,
p r e s e n t p r o p o s a l m o s t be f o l l o w e d w i t h i n t h e n e x t
months by o t h e r s
proposal
i n r e d u c i n g t h o numbers
and u n l e s s we a r e p r e p a r e d t o
t h e new r e q u i r e m e n t
it
o f a more d r a s t i o
character.
the
few
8,
As t o t h e d a t e when t h e
s u g g e s t e d new
a r e t o toe a p p l i e d ,
I think this
unemployment c u r v e
shews a d e f i n i t e
and I t h i n k f u r t h e r t h a t
i n t h e House b e f o r e
it
s i t u a t i o n meanwhile,
s h o u l d n o t be b e f o r e
downward
the proposal
is
into
announced
force.
some m a t e r i a l c h a n g e i n
the best course
the
tendency,
s h o u l d be
i s a c t u a l l y put
Accordingly, unless there
conditions
i n my o p i n i o n
the
would
be t o make t h e p r o p o s a l known i n t h e House d u r i n g t h e
first
week a f t e r r e s u m p t i o n o f t h e S e s s i o n ,
Into
o p e r a t i o n on T h u r s d a y ,
and t o b r i n g i t
February 1 9 t h - Thursday b e i n g the
o f t h e week m o s t c o n v e n i e n t
for a d m i n i s t r a t i v e r e a s o n s ;
a c t u a l c e s s a t i o n o f payment would t a k e p l a c e
till
no
the
s u c c e e d i n g p a y - d a y o n F e b r u a r y 2 6 t h o r 2 7 t h and a d e q u a t e
n o t i c e w o u l d t h u s be g i v e n t o a n y o n e w i s h i n g t o
objection in the
9,
this
raise
House.
I f my c o l l e a g u e s
see
no o b j e c t i o n I p r o p o s e
c o u r s e , and I h a v e a l r e a d y g i v e n i n s t r u c t i o n s
c a r r y i n g out of the n e c e s s a r y a d m i n i s t r a t i v e
which w i l l
take
from t h r e e
t o f o u r weeks t o
(Intd,)
M i n i s t r y of Labour,
3 ' 0 t i i J a n u a r y ^ lQ2"5.
to
for
measures,
completeo
A. S * M.
take
the
day