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Catalogue Reference:CAB/24/75
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(This Document is the Property of His Britannic Majesty's flcvernment).
WAR
CABINET.
OT3M£LOraSNT DONATION.
Civilian Workers *
will be remembered that the scheme now in force gives
29/- a week to the man, 26/- a week to the woman, 14/6&. to the boy
under 18, and ls/6d. a week to the girl under 18, with children's
allowance at the rate of 6/- a week for the first ahild, and 3/- a
week for each additional child under the age of 15, subject to certain
qualifying conditions, which, for the purpose of this Memorandum,it is
unnecessary to elaborate.
This scheme was instituted for a period of
6 months from the 29th November 1918, and in these f months, it provided
for a maximum of 13 weeks
11
donation to any one individual.
It will
therefore be seen that a oertain ever-inoreasing number of policies ­
estimated at about 40-50,000 per week - will expire on and after the ­
26th February 1919, and that the scheme itself comes to an end on the
25th May, 1919.
It becomes accessary to consider what scheme shall take the
place of that now in force,
I had hoped that it would be possible
to. substitute for the donation scheme general contributory insurance,
as foreshadowed in the original announcement which gave the terms of
the present scheme.
This alternative has been most carefully investigat­
sd, but I regret that the difficulties of bringing it into operation in
the time available are of so great and varied a character that I cannot
see my way to recommend at this moment any such prooedure.
Another
alternative, viz. that cf confining the scheme ta the trades insured
against unemployment has also been examined but appears to be equally
inapplicable to the present emergenoy.
$or example, it would fail ta
include such workers as tram and bus conductresses, women in railway
service, and also such industries as the textile trades.
It will
be remembered that in the oetton trade, unemployment is at the
moment very great.
It iB, however, essential to consider any new
^proposals from the point of view of their effect upon the general
contributory soheme when formulated.
/notwithstanding
notwithstanding
Armistice,
no c o n s i d e r a b l e
rehabilitation
is
still
of
movement h a a b e e n
industry,
which shows
such p o l i c i e s
February
excluding
that
It
is
t o me t h a t
it
another,
or
its
to
on t h e
31st
ia uninsurable
the
civilians
January,
of
no 2 e s s
the
than
last
678,703
on t h e
to
7th
consider
either
i n some s h a p e
t r a d e s which are
that
the
therefore
impossible
seeing
the
ccmpulsorily
the 67^,703
than
or
policies
325,000 are
held
occupations.
Assuming t h i s
that
the
that
since
showing
no l e s s
of unemployment b e n e f i t
a g a i n s t unemployment,
by workers
a table
I t would
is politically
restriction
remaining lodged
amongst
estimated
t h e number was 7 3 4 , 0 0 0 ) ,
in
those unsigned, f o r
on J a n u a r y 5 1 s t ,
were c u r r e n t .
the entire withdrawal
appear
(I attach
elapsed
effected
and unemployment
remaining lodged,
six days,
insured
three months have
on an a s c e n d i n g ; s c a l e .
policies
appear
that
following
t o b e t h e v i e w of
lines
uhe G o v e r n m e n t ,
it
o f p o l i c y may b e c o n s i d e r e d
would
­
(a)
To c o n t i n u e t o d a y ' s s c h e m e c f u n e m p l o y m e n t
f o r a f u r t h e r p e r i o d of 6 m o n t h s ,
donation
(b)
To r e d u c e t o d a y s r a t e o f d o n a t i o n t o t h a t o r i g i n a l l y
e m b r a c e d b y t h e G o v e r n m e n t , n a m e l y , 2 4 / - a week f o r
men a n d 2 0 / - a w e e k f o r women, w i t h o t h e r c o n d i t i o n s
as a t p r e s e n t ,
(c)
To c o n t i n u e t o d a y ' s s c h e m e w i t h t h e r a t e o f d o n a t i o n
a t 2 1 / - o r 2 0 / - a w e e k f o r men a n d 1 8 / - o r 1 7 / - a
week, f o r w o m e n , o r s u c h o t h e r v a r i a t i o n a s may b e
t h o u g h t w i s e , f o r a f u r t h e r p e r i o d of 6 m o n t h s ,
o t h e r c o n d i t i o n s b e i n g t h e same?.
1
In r e g a r d
an a c t u a l
to
deterrent
(a),,
to
i t must be u n d e r s t o o d
I am c l e a r
employment,
that
that
and
considerable
today's
should
rate
acts
as
be abandoned;
opposition
to any
but
such
*
course w i l l
lead
to
agitation
a reduction
Cabinet
be e n c o u n t e r e d ,
and any such p r o o e d u r e w i l l
and d i f f i c u l t y .
in the r a t e s
and
I
strongly
advocate
donation.
In regard
to
tc
which they p r e f e r .
decide
(b)
of
Nevertheless,
undoubtedly
(o),
it
is a matter
for
I think myself
the
v/ar
that
fc)
is possible,
c$8t
of
short
cost
more p a r t i c u l a r l y
living.
I understand
time b e f o r e
to
the
the loaf
State.
at
If
accompanied by a r e d u c t i o n
that
its
it
oan only be a q u e s t i o n
present value will
I t may b e t h a t
it
could
cost.
price
c o u l d be l o w e r e d ,
other
material
articles
assistance
in
of
food
carrying
through
at
further
without any or a t worst a small
of
If
be
cease
the
in
the
of
a
t c be
cheapened
same t i m o
the
i t would be
this
reduced
is
accepted,
a
scale
cf
of
donation.
If
a n y one of
of payments
the period
those
of b e n e f i t s
I should
allowance being varied,
Government
should
lay
and
would-be
employee,
affeoted
by i n s u f f i c i e n t
think
it
the
on which 13 w e e k s
donation
shall
1
tribunal
that
seeking work,
the Government
and
to
continue.
tho p r e s e n t
that
for
dependents
1
I do n o t ' t h i n i c
against
of
the r i s i n g generation might
be
i n view of
of
the present
less
scheme.
than
unless
With r e g a r d
to
to
for
the
I propose
applicant
is normally
is unable
1 0 t h March or
the
condition
s i x months
donation has been p a i d ,
their
Ireland
excluded
that
that
satisfies
i n employment,
obtain
it,
of
such date
o v e n t s may s h o w
as
from
circulated
to
this
the
I would s u g g e s t
and
that
the
continuation
v/ar C a b i n e t
that
scheme.
in regard
tho v a r i a t i o n
between
as a whole must
A Memorandum h a s
to
in the
Ireland,
scheme
i&
and
that
that
continuing
m u s t bo made
Ireland
the
and f u r t h e r
announcement
a differentiation
and G r e a t B r i t a i n ,
the
allowance.
wise.
I am c l e a r
the
t h r o u g h no f a u l t
he or she
should delay
perhaps
have
scheme
t o a c h a r g e b e i n g made
a period
n o t be c o n t i n u e d
suspension
contributory
reason
open
continuation
policies
bo
the
inadvisable,
of
till
for
children's
the duration
appropriate
deprecate
t h e h e a l t h of
t* contemplate
scheme
existing
of unemployment,
of i n d u s t r y ,
genuinoly
the
thomselves
in gonuino cases
I
0
under
t h a t may b e d e c i d e d u p o n w i l l
In any c a s e ,
them t h a t
alternatives
is
be
been
to
there recommended should be continued in Ireland after the
25th May at whatever rate of "benefit the Government may decide
on as applicable to Great Britain,
A Stib-Committee of the Labour He settlement Committee,
with Sir David Shaoklaton as Chairman, has formulated a scheme
of general State insurance on a contributory basis on the
following lines: ­
(1) All employed persons over 16 to be included,
except non-manual workers in receipt of
more than £160 per annum, and persons
entitled to receive payment under a Super
animation Act.
(2)
Weekly rate of contribution to be 3d. (women 2-g-d).
each from the employed, the employer ana
the State.
(3)
Weekly rate of benefit to be 15/- for men,
12/6d. for women, with lower rates of oon­
tribution and benefit for boys and girls
under 18.
(4)
Soheme to remain in operation for say 3 years,
and then to be reconsidered in the light of
experience.
(5) Eo exemption to be permitted of particular
trades from compulsory payment of oontri­
butions, but special arrangements as to
administration of benefits to be allowed.
A scheme on the above lines, in addition to requiring
legislation, will involve negotiations with a large number of
Trades Unions and Employers' Associations, and also with persons
representing industries whioh are 6 i t h e r not organised at all
or are only partly organised, such as domestic service and
agriculture.
It appears accordingly essential that negotiations
should be commenced immediately, with a view to the introduction
of a Bill as early as possible, so that she new scheme may come
into foroe on 25th November next, the date upon whioh the
proposed extension of the donation scheme will come to an end,
It is a matter for consideration whether the Bill
embodying the scheme of general State insurance should not form
part of the Bill whioh I understand may be introduced to deal
vrith labour conditions generally.
I a c c o r d i n g l y a s k f o r d e c i s i o n s on t h e
following
p o i n t s :-.
(1)
Whether the d o n a t i o n scheme i s t o c o n t i n u e ,
and, i f s o , what r a t e s a r e to he p a i d , and
over what p e r i o d i t i s to be o p e r a t i v e .
(8)
Whether the scheme, i f e x t e n d e d , should a p p l y
to I r e l a n d , and, i f a o , what m o d i f i c a t i o n s ,
i f a n y , should be made i n i t .
($)
Whether t h e r e i s a t once t o be i n t r o d u c e d a
soheme of g e n e r a l S t a t e i n s u r a n c e on a con­
t r i b u t o r y b a s i s on t h e l i n e s recommended by
S i r David S h a o k l e t o n ' a Committee, o r on any
other l i n e s .
ffx.
t.
/p
ffo.4.
UHJ^PLOndlSJre DOffAfflQff to Civilian Workers and Men discharged from H,.M. gorces.
Policies issued and policies remaining lodged at:January 10th.
- u .
.
.J
...
.
. L . mm
Issues
.
January 17th
i,
Policies
remaining
lodged( excluding those
unsigned for
the last 6
days).
Issues
Policies
remaining
lodged ^escluding those
unsigned for
the last 6
days).
January 24th
Issues
January 31st
Policies remaining lodged (excluding
those unsigned
for the last
6 days) *
Issues
230677
414760
150858
[a)577337
179513
777084
203880
379366
265567
433169
303944
476405
343912
Boys
29090
16462
34591
18131
38311
20543
44701
22562
Girls
29120
10365
34526
38410
22259
45103
25362
252836
449252
1079623
1330210
590594
1623053
Men
Women
I 0 !P A I
(a)
. 10018
519606
fa.) Adjusted figures.
1004946
policies re­
usaining lodged (excluding
those uii sign­
ed for the
last 6 days).
528303 *
- ., 1
400102
678703­