(c) crown copyright
Catalogue Reference:CAB/24/158
Image Reference:0006
DOOUlCJBx JE THE PROPERTY OF HIS SRITANHIO Ma JESSY'8 GOVERNMENT.
0 A 3 I g E T,
UNSMPLQYMEFT DTSURANQE.
REPORT 03' COMMITTEE.
1.
Under e x i s t i n g
legislation,
( 1 ) Purlng the
1st July,
tfourtl^Sjpeeial,
Period
From 2nd J u l y ,
to
The p o s i t i o n ,
(2nd November.
therefore,
increase
(July to
is that
It
exhaust b e n e f i t
exhaustions w i l l
1922 - ­
ranging
19,23. onvards - Up t o maximum of 26
began on 24th January l a s t .
120,000 w i l l
followsrr
circumstances;,
weeks d u r i n g the Insurance Year
2,
may be p a i d as
19^5) - Up t o a maximum number o f weeks
from 12 t o 22 a c c o r d i n g
(2)
benefit
July).
exhaustions o f
benefit
i s e s t i m a t e d t h a t a n y t h i n g up t o
by 4th A p r i l ,
and a f t e r
r a p i d l y week by week,
that
thereby
date
oreating
s o r i o u s u n r e s t and t h r o w i n g an i n c r o a s o d burden on t h e Poor Law
Authorities,
Moreover,
now s t a n d , w i l l
leave
the Unemployment
large
numbers w i t h o u t b e n e f i t
weeks from 1 s t J u l y ,
1923*
3,
thoroforo,
It
benefit
i s proposed,
i n t h e p e r i o d from
immediate l e g i s l a t i o n w i l l
4.
t o make a f u r t h e r
April
be
as
after
grant
they
a few
of
18th onwards, and f o r t h i s
purpose
necessary.
The p r o p o s a l s , which havo been a g r e e d w i t h the T r e a s u r y ,
briefly
as
are
follows
( 1 ) She Fourth S p e c i a l P e r i o d ,
July,
Insurance A c t s ,
instead of
ending
1923, should be e x t e n d e d t o 17th O c t o b e r ,
on 1st
1923.
During
p e r i o d as thus extended a maximum o f 44 weeks o f b e n e f i t
or uncovenanted) should be g r a n t e d ,
drawn In any p a r t i c u l a r
but a f t e r
the
(covenanted
22 weeks have been
case s i n c e the b e g i n n i n g
of-the
Fourth
I
Special Period,
t h e r e should be a " g a p " o f a
( 2 ) Tho t w e l v e months from m i d - O c t o b e r ,
fortnights
1923, t o
mid-October,
1924, would be t r e a t e d as a b e n e f i t y e a r d u r i n g which a maximum o f
26 weeks of b e n e f i t
( c o v e n a n t e d o r unoovenanted ) may be drawn.
In
order to ypread t h i o o v e r a l o n g e r p e r i o d t h a n 26 w e e k s ,
i n d i v i d u a l s would he r e q u i r e d t o
after
serve a "gap" of three
t h e y had r e o e i v e d a l l c o v e n a n t e d b e n e f i t
which t h e y wore e n t i t l e d ,
benefit,
or a f t e r
for
three weeks.
l e a s t
three
accept
i n
the House
and
wife
to
for
lated
i s paid o f f
itself
the insuranoe
the r a t e of
a temporary p r o v i s i o n and i s
the unemployment
to
now
of
The a d d i t i o n a l b e n e f i t
has
feature
scheme, a c o r r e s p o n d i n g adjustment b e i n g
date
at the end of the
d a f i o i e n o y
the S t a t e o o n t r i b u t i o n t o
i n t h e Aot o f
1920 -
o n e - t h i r d p a y a b l e under the p r e s e n t
(4)
insur­
a f i g u r e whioh d o e s not make, p r o v i ­
be o n e - f o u r t h o f tho j o i n t c o n t r i b u t i o n o f
the r a t e f i x e d
at 5s. f o r a
and should be made a permanent
contributions
As from the same
issue
a t the same d a t e the r a t e
this additional benefit,
amply j u s t i f i e d
difficulty
and t h e Unemployment Fund has aocumu­
aay n e o e s s a r y r e s e r v e s ) ;
sion for
to
the
employers
instead of
made
p e r i o d .
scheme
and
the r a t e
should
employed­
of
Insurance Scheme
a r e proposed on l i n e s which are b e i n g recommended by t h e
A c t u a r y
in
emergency A c t s .
Two f u r t h e r changes i n t h e Unemployment
Inter-Uepartmental
to
the
( i , e * whan t h e debt t o the T r e a s u r y -
contributions I s to f a l l
of
is
oease when t h e " d e f i c i e n c y p e r i o d " o f
£16,500,000 -
rise
a t present payable
each young o h i l d
anoe Boheme.ends,
at
weekSo
The a d d i t i o n a l b e n e f i t
and l a .
imposing a gap o f
t h e y would be p r e p a r e d t o f a c e the
and adhere t o the t h r e e
(3)'
arise
of Labour would be p r e p a r e d
the p o i n t may g i v e
that
about
o n l y on tho u n d e r s t a n d i n g t h a t
but
that
Twelve weekB
the Treasury p r e s s f o r
but
The M i n i s t e r
weeks,
Cabinet r e a l i s e
weeks,
they
The M i n i s t e r o f Labour and
of Health a r e apprehensive
two
if
i n o r d e r t h a t the gap may not
i n any ca3e at o r about C h r i s t m a s .
l o n g e r d u r a t i o n than
to
p l u s t w e l v e v/eeks of, unoovenanted
any c o v e n a n t e d b e n e f i t .
t h i s purpose
the M i n i s t e r
any)
t w e l v e weeks of unoovenanted b o n e f i t
a r e not q u a l i f i e d f o r
is fixed
(if
weeks
Committee p r e s i d e d o v e r by- t h e Government
(a)
The r e f u n d s now p a y a b l e t o i n s u r e d p e r s o n a
t h e age of
share o f
60 (which a r e based on t h e v a l u e o f t h e i r own
contributions paid,
be a b o l i s h e d f o r
in respeot
of
less benefit received)
the f u t u r e ,
subject
the c o n t i n g e n t . r i g h t s
who a r e now aged 50 y e a r s o r o v e r .
(i)
for
at
the
to limited
of
compensation
those insured persons
This change i s
sake o f economy i n a d m i n i s t r a t i o n ;
t h e . s y s t e m of r e f u n d s
should
important
(II)
because
i s h a r d l y c o n s i s t e n t w i t h the
principle
of
an i n s u r a n c e
scheme; and ( H i )
because
the
liability
c r e a t e d by t h e system i s not o n l y v e r y heavy but
w i l l t e n d i n tha f u t u r e t o absorb a l a r g e p a r t of t h e w o r k ­
peopled
contributions,
thus t h r o w i n g the c o s t of
benefit
i n l a r g e p a r t on t h e employers and the S t a t e .
The amount
of
estimated
compensation p a y a b l e under the p r o p o s a l s i s
t e be £ 2 , 0 0 0 , 0 0 0 a t a maximum,
( b ) At p r e s e n t c o v e n a n t e d b e n e f i t
ratio
of
paid.
one week o f b e n e f i t
It
for
i s limited in
every six
the
contributions
i s proposed t o s u b s t i t u t e a, now. r u l e under whidh
t h e number of weeks of
benefit
t o the a v e r a g e number of
according
c o n t r i b u t i o n s p a i d i n the - t h r o e
preceding insurance years,.
This change would not come
effect
till
normal
s c a l e of c o n t r i b u t i o n s
of b e n e f i t
would be a s s e s s e d
the p e r i o d b e g i n n i n g m i d - O c t o b e r , 1 9 2 3 , and t h e
qualifying
for various
periods
should p r o b a b l y be r e l a x e d d u r i n g the f i r s t
or t h r e e y e a r s of
its
operation,
p e r s o n s from h a v i n g t h e o p p o r t u n i t y t o pay
insured
contributions.
This change, c o u p l e d w i t h the a b o l i t i o n cf r e f u n d s
e n a b l e a. s u b s t a n t i a l economy i n . a d m i n i s t r a t i v e
expenses t o be
effected.
two
owing to- the abnormal
unemployment which has p r e v e n t e d l a r g e numbers of
60, w i l l
into
at
5.
The above p r o p o s a l s . : w i l l i n v o l v e a g r a d u a l i n o r e a s e i n the
debt of t h e Unemployment Fund from i t s p r e s e n t f i g u r e
of
£16,500,000 t o a f i g u r e which (on t h e assumption t h a t the
average
numbers unemployed r e m a i n as h i g h as 1,250,000 d u r i n g the n e x t ; 18
months) i s e s t i m a t e d t o r e a c h a t i t s maximum 25 or 26 m i l l i o n
pounds, r e d u c i n g t o
23 or 24 m i l l i o n s by ,mid-October, 1924-;
maximum borrowing power
There w i l l
of t h e Unemployment fund i s 30 m i l l i o n s .
be no i n c r e a s e i n t h e p r e s e n t y e a r l y amount o f
charge on t h e . E x c h e q u e r ,
t h i s charge w i l l
longer p e r i o d ,
of
the
but i n consequence o f t h e p r e s e n t
course have t o be continued f o r
e m p l o y e r s , workmen and t h e S t a t e .
After
period, the State contribution w i l l
contributions
proposals
a somewhat
s i n c e the sum borrowed must be p a i d o f f
a continuance of t h e p r e s e n t h i g h r a t e s of
the lower t o t a l
the
by means of
contributions
from
the end of t h e d e f i c i e n c y ­
be reduced both on account
then n e c e s s a r y and because t h e
of t h e S t a t e c o n t r i b u t i o n to t h e J o i n t c o n t r i b u t i o n s
of
of
ratio
employers
and employed i s t o be o n e - f o u r t h i n s t e a d of t h e p r e s e n t r a t i o
of
one-third,
HOTE:- A f u r t h e r
p o i n t w i t h which t h e M i n i s t e r
of
labour
hopes t o be a b l e t o d e a l i n t h e B i l l now proposed i s t h a t
effect
of
giving
t o the recommendation made by Lord Ohelmsford and approved by
t h e l a t e Government t h a t any L o c a l Education A u t h o r i t y which so
d e s i r e s should be p e r m i t t e d t o have the s o l e a d m i n i s t r a t i o n of a
c h o i c e of Employment Scheme f o r
age p r o v i d e d t h a t
fit
in respect
It
under 18 y e a r s
arranges also to administer
of t h e s e boys and g i r l s
the M i n i s t r y o f Labour.
Minister
boys and g i r l s
unemployment
on l i n e s s a t i s f a c t o r y
bene­
to
This matter i s now b e i n g c o n s i d e r e d by the
of Labour' i n c o n s u l t a t i o n w i t h t h e P r e s i d e n t
of E d u c a t i o n , .
of
/
11
N
//
of t h e
Board