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Catalogue Reference:CAB/24/223
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P&vDOCUMBNT I S THE PROPERTY OF H13 T3RXTANNIG MAJESTY'6 GOVERNMENT.
EGRET,
Copy No.
. ? . 211 ( 31)
C A B I N B T.
U3Sn&)I-l,OYMKNT
PROVISION
INSUR ANCE,
FOR INSUPED PERSONS NOT ENTITLED
TO ORDINARY BENEFIT/""
Memorandum b y t h e M i n i s t e r s o f H e a l t h
and L a b o u r .
The May Committee recommended t h a t p e r s o n s n o t
to Ordinary B e n e f i t
under
an arrangement
Public Assistance Authorities
giving
entitled
should he r e f e r r e d t o t h e P u b l i c
Assistance Authorities
for
9,
such a s s i s t a n c e
by which t h e
would he f i n a n c i a l l y
responsible
a s was n e e d e d , w i t h t h e a i d o f
g r a n t s from t h e Unemployment Fund on a g r a d u a t e d s c a l e
especially
to r e l i e v e
h e a v i l y burdened.
the c h a r g e on t h o s e a u t h o r i t i e s
They s a i d t h a t
designed
already
­
"Government D e p a r t m e n t s have n o t t h e m a c h i n e r y f o r
inquiring
special
i n t o personal
machinery f o r
d u p l i c a t i o n of
this
p u r p o s e w o u l d he a w a s t e f u l
and County Borough C o u n c i l s as P u b l i c
Assistance
Authorities''
We b e l i e v e
that
larger
and t o s e t up
t h e r e c o n s t r u c t e d m a c h i n e r y now o p e r a t i n g
under t h e County
sound and ought
circumstances
0
t h e May C o m m i t t e e ' s
to b e adopted.
recommendation
Not o n l y w o u l d i t
important i t
would s e c u r e
was d e a l t w i t h b y a body c o m p e t e n t
the l o c a l
and p e r s o n a l
from p o l i t i c a l
"7e a r e o f
method;
each case­
t o have due r e g a r d b o t h
to
c i r c u m s t a n c e s o f each c a s e and r e m o v e d
pressure,.
o p i n i o n t h a t by f a r t h e b e s t
problem would he t o adopt
Committee, hut i f
politically
that
is
s a v e a much
sum o f money than c o u l d b e s a v e d by any o t h e r
b u t what i s e q u a l l y
—,
s o l u t i o n of
t h e recomuendation of
the
the May
that course should he d e c i d e d to h e
impracticable,
there
1.
a r e two p o s s i b l e
alteratives.
/Either
59
mm
Either
the M i n i s t r y
responsible for
of
the r e l i e f ,
by w h i c h t h e m a c h i n e r y o f
may b e used f o r
applications
L a b o u r must be
or
entirely
some method must b o
the P u b l i c A s s i s t a n c e
investigation
and t h e a c t u a l
devised
Committee
end assessment l e a v i n g
the
payments i n t h e hands o f
the
Ministry,
With r e g a r d
the
to the f i r s t
of
t h e s e m e t h o d s , we a g r e e
above q u o t a t i o n f r o m the May Committee' s R e p o r t
wasteful
duplication
of
the r e c o n s t r u c t e d P u b l i c
m a c h i n e r y w h i c h w o u l d be i n v o l v e d i f
had t o
needs.
and i t
s e t up a n a t i o n - w i d e
Moreover,
would i n v o l v e a c o n s i d e r a b l e
and e s t a b l i s h m e n t
would a l s o
assessing
expenses o f
have to a c q u i r e
the requirements
Assistance Authorities
of
of
to consider
the machinery would take
as t o
Labour
individual
some t i m e to
increase
i n the
the M i n i s t r y .
The
instal,
staff
Ministry
the d i f f i c u l t
technique
of
c a s e s , which t h e
individual
a l r e a d y have by v i r t u e
the
Assistance
the M i n i s t r y
machinery
with
of
of
Public
generations
experience.
Another
important p o i n t
is
w e r e t o s a t up such m a c h i n e r y ,
h a v e t o answer i n P a r l i a m e n t
deal with a vast
ing i n d i v i d u a l
perpetual
the
that
it
this
refusals
of
in individual
past.
Lastly,
all
complaints
cases,
the t r o u b l e
2,
to
as
and r e g a r d ­
T h i s would b e a
source
serious
of
the
day.
disadvantage
the c o n f u s i o n between t r u e
w h i c h has b e e n t h e s o u r c e of
would
Parliament
t o t h e Government o f
the v e r y
Labour
and w o u l d have
containing
an a l l o w a n c e .
of
o f Labour
from Members o f
relief
after
the M i n i s t r y
actions
and an i n t o l e r a b l e
p r o p o s a l has
perpetuates
its
the Government)
embarrassment and i r r i t a t i o n
Moreover,
for
allowance
difficulty,
if
the M i n i s t e r
correspondence
( i n c l u d i n g Members o f
to the amount o f
that
insurance
so much d i f f i c u l t y
and
in
the
end i n d e e d p a r t l y b e c a u s e
/of
of
it,
the
s a v i n g would h e r e l a t i v e l y
small,
say £ 5 m i l l i o n s
We c a n n o t recommend t h i s method, and a c c o r d i n g l y
the second
proceed
alternative.
T h i s method c o n t e m p l a t e s a p r o c e d u r e under w h i c h ,
a p p l i c a t i o n s would "be made t o and payments made by
Employment E x c h a n g e s ,
of
to
the m a c h i n e r y o f
t h e assessment
the f u l l e s t
while
the
p o s s i b l e u s e would be made
the P u b l i c A s s i s t a n c e A u t h o r i t i e s
o f n e e d and the f i n a l
determination
for
of
the
amounts t h a t s h o u l d be p a i d .
It
of
is
relief
the l o c a l
clear
t h a t under
this
arrangement
authorities
could not b e asked to c o n t r i b u t e ,
t o be t h e s u b j e c t
of
of
of
the money.
the body f i n d i n g
This arrangement
s t r o n g c r i t i c i s m on t h e
t h a t t h e assessment
The m a j o r i t y
is
control
parts:­
the a u t h o r i t i e s w i l l
carry
out
t h e a s s e s s m e n t s w i t h a s much c a r e
as t h e y g i v e
their
i n some a r e a s
will
(b)
of
as
ground
t h e payments i s n o t under t h e
The answer t o i t m i g h t b e i n t h r e e
(a)
cost
w o u l d h a v e t o b e b o r n e b y t h e Exchequer and t h a t
c o n t e m p l a t e d b y t h e May C o m m i t t e e .
likely
the whole
p u b l i c a s s i s t a n c e w o r k , but
not be
The l o c a l
of
the M i n i s t r y
of
the a u t h o r i t i e s
w h i c h t h e y have c l e a r l y
available
of Labour
t o u c h w i t h t h e c a s e s and w i l l b e
t o draw a t t e n t i o n
inspectorate
it
so:
officials
be i n c l o s e
to
of
gone a s t r a y .
the M i n i s t r y
to r e i n f o r c e
3.
able
to c a s e s
Further,
of H e a l t h w i l l
these e f f o r t s
will
as
in
the
be
necessary:
/(c)
(c)
Payments w i l l
o n l y "be made t o p e r s o n s who
the c o n d i t i o n s
Benefit ';
the a p p l i c a n t
(including
fall
rate
dependants
in excess of
will
i s now c a l l e d
and i n no c a s e w i l l
1
exceed
f o r w.lh a t
this
1
paid
ordinary
allowances),
amount i s
"Transitional
t h e amount
of
on t h e P u b l i c A s s i s t a n c e
benefit.
If
required,
satisfy
assis tance
the
difference
A u t h o r i t y as
at
present.
Nevertheless,
some f u r t h e r
w e l l be n e c e s s a r y and i t
by t h e
It
introduction
is desirable
of
that
the
of
In
Public
t h i s might be
following
existing
should be a p p l i e d
to give
found
practice.
term than T r a n s i t i o n a l
Benefit
t o t h e payments^
any p r e c i s e
s a v i n g which would be e f f e c t e d ,
order
in
regulations
i s not p r a c t i c a b l e
o v e r a s s e s s m e n t s may
suggested that
some o t h e r
or P u b l i c A s s i s t a n c e
It
is
control
but
it
estimate
of
may w e l l be o f
the
£10,000,000.
some i n s t a n c e s
the i n v e s t i g a t i n g
machinery
of
the
A s s i s t a n c e A u t h o r i t i e s w o u l d have t o b e augmented, "but
the m a j o r i t y
of
areas
t h e t a s k w o u l d be s i m p l e .
"be found, n e c e s s a r y t h F t
the M i n i s t r y
grant
additional
in respect
authorities
of
incur
Failing
the
t o do
therefore
this
the
reeom.. end t h e C a b i n e t
of
expense which
not
entitled
finally
t h e May Committee, we
to d e c i d e that
acting
for
Labour;
of
of
Labour t o
to ordinary b e n e f i t
d e t e r m i n e d by
the
Unemployment
so t h a t
and t h a t n e g o t i a t i o n s
opened a t
the
insured
amounts
persons
s h a l l be assessed
the P u b l i c A s s i s t a n c e
t h i s p u r p o s e as a g e n t s
a u t h o r i t i e s be
the
work.
plan of
the M i n i s t r y
might
L a b o u r s h o u l d make a
I n s u r a n c e A c t s be amended f o r t h w i t h
p a y a b l e by
It
of
with
Authorities
the M i n i s t r y
the
and
of
associations
once t o s e c u r e
their
co-operation.
(Signed)
28th August
9
1931,
NEVILLE CHAMBERLAIN.
Ho B, BBTTERTON.