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14
6
-
DOCUMENT I S THE PROPERTY OF HIS BRITANNIC MAJESTY'3 GOj/ERNMENT)
RET
COPY NO.
.90 (35)
C A B I N E T .
UNEMPLOYMENT INSURANCE POLICY COMMITTEE.
REPORT.
1.
At t h e i r M e e t i n g
the Cabinet had b e f o r e
on t h e 1 0 t h A p r i l ,
1933 (Cabinet
them t h e T h i r d R e p o r t of
C o m m i t t e e on U n e m p l o y m e n t I n s u r a n c e
Memorandum b y t h e M i n i s t e r
(Paper C P .
the
26
Cabinet
89 ( 3 3 ) )
of Labour (Paper C P .
(33)),
and a
90 ( 3 3 ) ) ,
and
a g r e e d t h a t a C a b i n e t Committee composed a s f o l l o w s j The
The
The
The
The
The
The
The
C h a n c e l l o r of t h e Exchequer
( i n the Chair)
S e c r e t a r y o f S t a t e f o r Home A f f a i r s
S e c r e t a r y of S t a t e f o r D o m i n i o n A f f a i r s
S e c r e t a r y of S t a t e f o r S c o t l a n d
M i n i s t e r of H e a l t h
M i n i s t e r of A g r i c u l t u r e a n d F i s h e r i e s
M i n i s t e r of L a b o u r
F i r s t C o m m i s s i o n e r of W o r k s
should re-examine
CP.
89 ( 3 3 ) ,
t h e scheme s u b m i t t e d t o t h e C a b i n e t
in the l i g h t
of t h e C a b i n e t
view t o r e a c h i n g an a g r e e d scheme.
report
as to which M i n i s t r y
or M i n i s t r i e s
all
the
allotted.
Committee c o v e r e d b o t h t h e i n d u s t r i a l
o t h e r p e r s o n s who n e e d r e l i e f
unemployment;
Labour,
(CP.
the a l t e r n a t i v e
a summary o f w h i c h i s
90 ( 3 3 ) )
also
responsibility
The c o m p r e h e n s i v e scheme p r e p a r e d b y t h e
Cabinet
with a
The C o m m i t t e e s h o u l d
f o r c a r r y i n g out t h e scheme s h o u l d b e
2.
discussion,
in
from c a u s e s
proposals
previous
unemployed
other
and
than
of t h e M i n i s t e r
appended to h i s
of
Memorandum
were r e s t r i c t e d t o t h e i n d u s t r i a l
unemployed,
no c h a n g e b e i n g c o n t e m p l a t e d i n t h e a r r a n g e m e n t s
at
i n f o r c e w i t h r e g a r d t o o t h e r p e r s o n s i n n e e d of
assistance,
e.g.
others.
the aged,
the s i c k and d i s a b l e d ,
wddows a n d
V/e h a v e c a r e f u l l y
r e v i e w e d t h e s e s c h e m e s a n d we h a v e
examined v a r i a n t s
of them,
present
also
a n d we a r e now i n a p o s i t i o n
to
report
to the Cabinet
t h a t we h a v e r e a c h e d a g r e e m e n t u p o n a
scheme s u g g e s t e d by t h e M i n i s t e r
t h e main p r i n c i p l e s
restricted
in i t s
of t h e
and t h a t t h e r e
original
scope.
Scotland has agreed t h a t
of L a b o u r w h i c h i s b a s e d
scheme, b u t i s
The S e c r e t a r y
of S t a t e
more
for
t h e scheme s h o u l d a p p l y t o
s h o u l d b e o n l y one Unemployment
Scotland
Assistance
B o a r d f o r t h e whole
of t h e U n i t e d K i n g d o m .
not be n e c e s s a r y t o
introduce a separate Scottish Bill
It will
w o u l d h a v e b e e n t h e c a s e i f we h a d r e c o m m e n d e d t h e
of t h e more c o m p r e h e n s i v e s c h e m e i n C P .
3.
the
While t h e views
of t h e M i n i s t e r
89
on
therefore
as
acceptance
(33).
of H e a l t h i n r e g a r d
to
s c h e m e now f a v o u r e d b y t h e C o m m i t t e e r e m a i n u n c h a n g e d ,
he
is prepared to co-operate
workable one.
principle,
He w i s h e s , h o w e v e r ,
and he w i l l
his reasons
for
We a t t a c h
features
of t h e
scheme.
the
a brief
of
course
open t o
summary of t h e
We do n o t t h i n k t h a t i t
certain
principal
is necessary
stage with the d e t a i l s
of
t h e C a b i n e t a r e w i l l i n g t o p r o c e e d on t h e
now p r o p o s e d , we s u g g e s t t h a t
the Minister
be the r e s p o n s i b l e M i n i s t e r under
authorised to
scheme i s
i n due
scheme w h i c h we h a v e a g r e e d t o recommend
the Cabinet at t h i s
If
reserve the question
objections.
(Appendix)
Cabinet to adopt.
trouble
to
submit t o the Cabinet
thinking that
grave administrative
4.
i n e n d e a v o u r i n g t o make t h e s c h e m e a
arrange for
of L a b o u r ,
the
to
this
lines
who w i l l
the scheme, should be
the p r e p a r a t i o n
o f an Unemployment
B i l l d e a l i n g b o t h w i t h unemployment i n s u r a n c e . a n d unemployment
a s s i s t a n c e f o r c o n s i d e r a t i o n b y t h e Home A f f a i r s C o m m i t t e e
a n d t h e C a b i n e t t o w a r d s t h e e n d of t h e p a r l i a m e n t a r y R e c e s s .
5.
We u n d e r s t a n d t h a t
it
i s proposed to take
S e c o n d R e a d i n g of t h e U n e m p l o y m e n t B i l l
immediately after
at
the
the
e a r l y i n December
c o n c l u s i o n of t h e D e b a t e on t h e A d d r e s s
t h e O p e n i n g of t h e new S e s s i o n .
We a t t a c h
great
i m p o r t a n c e t o a s much p r o g r e s s
the B i l l before
Christmas,
imperative
the text
early
6.
that
1933, and i n any event i t
of t h e B i l l
i n t h e new S e s s i o n a s
It
is estimated
that
elapse between the passage
being brought
It
at
of
least
s i x months
the B i l l
including
w h i c h t h e Unemployment I n s u r a n c e
If,
however,
and t h e i r
that
as
Before the B i l l
the Local Authorities
these negotiations
Authorities,
particular
1933, the date
(Expiring Enactments)
can be i n t r o d u c e d ,
must t a k e p l a c e ,
the
the general nature
the d e t a i l s
of i t s
of
the
Authorities before
Minister
its
negotiations
8.
of i n f o r m a t i o n w i t h
a n d t h e r e may b e
s t r o n g l y of
statement
It
is
regard
some
the
The
in regard
which
of
the
opinion that
of t h e d i s c u s s i o n s w i t h t h e L o c a l
no
to
embodies
Authorities,
introduction.
We; recommend t o t h e C a b i n e t
(l)
with
in
implications.
t h e Scheme s h o u l d b e i s s u e d u n t i l t h e B i l l ,
is ready for
Act
and i n t h e c o u r s e
submission to Parliament.
or o t h e r ay. t h o r i t a t i v e
the r e s u l t s
on
extended.
scheme h a s b e e n d i s c u s s e d w i t h
of L a b o u r i s , h o w e v e r ,
White Paper
should
present
the scheme, and
financial
t o t h e scheme w i l l n o t t a k e p l a c e ,
that
by
i t w i l l be n e c e s s a r y t o d i s c l o s e t o
impossible to ensure that leakage
complaints
the
t h e new A c t
this proves impossible,
the
approval
arrangements w i l l have to be again t e m p o r a r i l y
7.
its
to give time for
such m a t t e r s
is highly d e s i r a b l e
should
i n t o law and
come i n t o o p e r a t i o n a s f r o m 3 0 t h J u n e ,
expires.
as
practicable.
of R u l e s a n d R e g u l a t i o n s
Parliament.
is
should be published
into operation in order
necessary arrangements,
preparation
a s p o s s i b l e b e i n g made w i t h
:­
That approval i n p r i n c i p l e should be
g i v e n t o t h e Unemployment A s s i s t a n c e
S c h e m e , t h e p r i n c i p a l f e a t u r e s of w h i c h
a r e summarised i n the Appendix t o t h i s
Report.
(2)
That t h e M i n i s t e r of Labour s h o u l d he
authorised to arrange for the preparation
of a n U n e m p l o y m e n t B i l l b a s e d on t h e
approved scheme, but a l s o c o v e r i n g the
s u b j e c t of u n e m p l o y m e n t i n s u r a n c e , f o r
c o n s i d e r a t i o n b y t h e Home A f f a i r s C o m m i t t e e
. and t h e C a b i n e t , t o w a r d s t h e end of t h e
Parliamentary Recess.
(3)
T h a t on t h e a s s u m p t i o n t h a t i t w i l l n o t b e
possible to introduce the B i l l before the
commencement o f t h e new P a r l i a m e n t a r y
S e s s i o n i n t h e Autumn, e v e r y e f f o r t s h o u l d
b e made t o s e c u r e t h a t a s much p r o g r e s s a s
p o s s i b l e w i l l b e made w i t h t h e B i l l b e f o r e
t h e Christmas R e c e s s , 1933, and t h a t , i n any
e v e n t , t h e t e x t of t h e B i l l s h o u l d be p u b l i s h e d
a s e a r l y i n t h e new S e s s i o n a s p r a c t i c a b l e .
(4)
T h a t t h e a i m s h o u l d b e t o b r i n g t h e new
Unemployment Act i n t o o p e r a t i o n a s from t h e
3 0 t h J u n e , 1935^* t h e d a t e on w h i c h t h e Unemployment
I n s u r a n c e Act e x p i r e s .
(5)
That n o t w i t h s t a n d i n g t h a t n e g o t i a t i o n s w i t h
L o c a l A u t h o r i t i e s must t a k e p l a c e b e f o r e t h e
B i l l i s a c t u a l l y i n t r o d u c e d , no White P a p e r or
other authoritative statement with regard to
t h e p r o p o s a l s t o be embodied i n the B i l l should
be published u n t i l the B i l l i t s e l f i s ready for
introduction.
S i g n e d on b e h a l f
of t h e
Committee
NEVILLE CHAMBERLAIN.
Chairman.
Whitehall Gardens,
21st
July,
1933.
S.W.1.
A P P E N D I X .
MAIN PRINCIPI.ES OF THE UNEMPLOYMENT ASSISTANCE
SCHEME RECOMMENDED BY THE CABINET"COMMITTEE.
1.
T h e p e r s o n s t o whom t h e s c h e m e w i l l
those w i t h a normal occupation
apply w i l l
of e m p l o y m e n t
in
be
respect
of w h i c h c o n t r i b u t i o n s w o u l d b e p a y a b l e u n d e r t h e W i d o w s ,
O r p h a n s a n d O l d Age C o n t r i b u t o r y P e n s i o n s A c t s
t o g e t h e r w i t h y o u n g p e o p l e who h a v e n o t b e e n
since attaining
responsible
t h e a g e of 1 6 .
1925-1929,
employed
The B o a r d w i l l
(save as s t a t e d below) f o r a l l
be
relief
required
w h i l e an a b l e - b o d i e d p e r s o n w i t h i n t h e a g r e e d scope
unemployed,
if
e.g.
required,
takes a l l
s u p p l e m e n t a t i o n of x m e m p l o y m e n t
w i l l be given by t h e Board.
definition
o u t of t h e P o o r Law and o u t of t h e
by L o c a l A u t h o r i t i e s , b u t
It
from c a u s e s o t h e r t h a n
is proposed that
cases
of s i c k n e s s
administration
Public
dealing with
etc.,
Cases
o n t h e r e g i s t e r of t h e B o a r d w i l l b e r e l i e v e d b y t h e
the register
It
will
i n a f a m i l y w h e r e t h e h e a d of t h e h o u s e h o l d
Odd d a y s o f s i c k n e s s w i l l n o t
of t h e
is further
the Board,
and t h a t
of
remains
Board.
o p e r a t e t o r e m o v e a man f r o m
Board.
proposed t h a t p e r s o n s unemployed by
r e a s o n of a T r a d e D i s p u t e
shall
fall
their families
t o be a s s i s t e d by L o c a l
o u t of t h e s c o p e
shall,
Authorities.
th;
unemployment.
n o r m a l l y be r e l i e v e d by t h e L o c a l A u t h o r i t y .
sickness
scheme
this
leaves untouched the
A s s i s t a n c e machinery e s t a b l i s h e d i n 1929 f o r
p o o r who n e e d r e l i e f
benefit,
Thus t h e
t h e a b l e - b o d i e d unemployed c o v e r e d by
is
a s now,
of
continue
There are c e r t a i n
treatment
cases where the
i s an o r d e r f o r
institution.
relief
In such cases
it
s h a l l remain r e s p o n s i b l e f o r
a period.
It
ITERIAL
1 N S I B I L -
2.
Authority
i s proposed t h a t
the i n s t i t u t i o n a l
such a case t o the
the
of t h e L o c a l
Board
costs
for
(see
financial
Authority.
The M i n i s t e r of L a b o u r w i l l b e r e s p o n s i b l e
Parliament
to
f o r t h e g e n e r a l p o l i c y of t h e s c h e m e , t h e
f o r which w i l l be provided
responsible for
the
in a Local
w i l l he open t o t h e Appeal T r i b u n a l
p a r a g r a p h 6) t o t r a n s f e r
responsibility
appropriate
assessment
on E s t i m a t e s .
He w i l l
submitting to Parliament
the Rules
of n e e d a n d t h e c i r c u m s t a n c e s
in
funds
be
regarding
which
U n e m p l o y m e n t A s s i s t a n c e may b e g i v e n where this is not governed by
provisions contained in the Statute
s
Board for dealing -with, such m a t t e r s
and t h e Regulations proposed by t h e
a s t h e manner i n
a p p l i c a t i o n f o r Unemployment A s s i s t a n c e
r e v i e w of d e c i s i o n s ,
w i l l be l a i d b e f o r e
etc.
i s t o be made,
These R u l e s and
Parliament
an A d d r e s s .
the
in individual
3.
T h e r e w i l l b e a s i n g l e Unemployment A s s i s t a n c e
LOYMENT
rANCE
f o r England and Wales and S c o t l a n d .
of a C h a i r m a n a n d n o t l e s s t h a n t w o ,
control
Statute
cases.
-TTMENT
members.
after
presentation
The M i n i s t e r w i l l b e p r o h i b i t e d b y
from i n t e r f e r e n c e
the
Regulations
a s soon a s p r a c t i c a b l e
t h e y a r e m a d e , a n d may b e a n n u l l e d a f t e r
of
which
The B o a r d w i l l
nor
Board
consist
more t h a n
five
I t s main d u t i e s w i l l be the p r o m o t i o n , under
of t h e M i n i s t e r a n d of p a r l i a m e n t ,
of t h e
o f t h e a b l e - b o d i e d u n e m p l o y e d a n d t h e g i v i n g of
on a p p l i c a t i o n s
f o r Unemployment A s s i s t a n c e .
w i l l have a permanent
staff
of o f f i c e r s ,
the
welfare
decisions
The B o a r d
a n d may a l s o ,
where n e c e s s a r y ,
employ a s a g e n t s t h e o f f i c e r s
of
Local
Authorities.
In the course
of
i t s d u t y of p r o m o t i n g t h e
welfare
of t h e a b l e - b o d i e d u n e m p l o y e d t h e B o a r d w i l l h e
f o r making a r r a n g e m e n t s f o r
the t r a i n i n g
and
reconditioning
of p e r s o n s u n d e r t h e B o a r d i n c o l l a b o r a t i o n ,
with the Minister,
4.
the Local A u t h o r i t i e s
All applications
pursuance
of
all
questions
officers
in Regulations.
5.
CENT
lie
of
t o an A p p e a l T r i b u n a l .
applicant
Leave t o appeal w i l l
rule.
the
An A p p e a l T r i b u n a l s h a l l ,
It
of a n A p p e a l T r i b u n a l
i s proposed that
r e d u c e t h e amount
officer
officer
s h a l l be
the Tribunal
may n o t h a v e
appears
in
of
in deciding
a
rules.
final.
s h a l l have power
conditions which the
to
assistance
assistance
imposed.
An A p p e a l T r i b u n a l w i l l c o n s i s t
of a C h a i r m a n p a i d b y
f e e a p p o i n t e d b y t h e M i n i s t e r a n d two o t h e r p e r s o n s ,
represent
the
provisions
of t h e d e t e r m i n a t i o n g i v e n b y t h e
and a l s o t o impose
cases.
the
circumstances
c a s e , be governed by t h e s t a t u t o r y p r o v i s i o n s and
The d e c i s i o n
and
instance
of t h e d e c i s i o n
case which a r e not covered by t h e s p e c i f i c
a statutory
decide
of t h e B o a r d w i l l
only be given-where
special
and
in individual
of t h e C h a i r m a n of
a modification
t o be r e q u i r e d b e c a u s e t h e r e a r e
his
(in
t h e amount
Appeals w i l l be at
with the leave
shows t h a t
Board
a s t h e B o a r d may g i v e t h e m ) w i l l
A p p e a l s f r o m a d e c i s i o n of a n o f f i c e r
-
Tribunal.
of t h e
stand
a n d of R u l e s
regarding the q u a l i f i c a t i o n s ,
an a p p l i c a n t ,
bodies.
These o f f i c e r s
t h e c o n d i t i o n s of U n e m p l o y m e n t A s s i s t a n c e
Y
desirable,
and o t h e r
of t h e p r o v i s i o n s of t h e S t a t u t e
such i n s t r u c t i o n s
where
f o r Unemployment A s s i s t a n c e w i l l
r e f e r r e d f o r d e c i s i o n to such l o c a l
a s may b e p r e s c r i b e d
responsible
workers and t h e
other to represent
the
one
to
Commission.
PEAL MACHINERY
DOPE) .
For t h e p u r p o s e
6
(i.e.
o f a n a p p e a l on s c o p e ,
an appeal by an a p p l i c a n t ,
or by a
.
*3 O
Local
i
A u t h o r i t y t o whom t h e a p p l i c a n t h a s o r may b e c o m e
c h a r g e a b l e b y r e a s o n of
t h e d e c i s i o n , who i s
dis­
s a t i s f i e d with the decision in r e l a t i o n to the
qualification for
the r e c e i p t
t h e Appeal T r i b u n a l w i l l
of u n e m p l o y m e n t
MCE.
the h e a r i n g of c a s e s
7,
Under t h e
assistance)
c o n s i s t of t h e C h a i r m a n
A L o c a l A u t h o r i t y w i l l be e n t i t l e d t o be
at
first
i n which i t
scheme,
is
represented
concerned.
certain public
assistance
s e r v i c e s now p e r f o r m e d b y L o c a l A u t h o r i t i e s w i l l
transferred
fore,
to the Board,
be paid to
alone.
Contributions
will,
be
there­
t h e B o a r d by L o c a l A u t h o r i t i e s .
The
c o n t r i b u t i o n b y L o c a l A u t h o r i t i e s w i l l b e b a s e d on
estimated cost
of t h e t r a n s f e r r e d
standard year (1932-33)
subject
services
in
the
t o v a r i a t i o n from ­
y e a r t o y e a r a s p o p u l a t i o n a n d unemployment v a r y ,
subject
to a deduction
r e p r e s e n t i n g an
c o n t r i b u t i o n by the Exchequer which i t
should be a p p l i e d i n
relief
is
therefore
not in a f i n a l
to secure
the agreement
shape.
have not
It
i s hoped,
of t h e A u t h o r i t i e s
and t o t h e
areas..
s i d e of t h e s c h e m e
of e s t i m a t i o n w h i c h can b e r e g a r d e d a s
both to themselves
contemplated
of t h e d i s t r e s s e d
and the f i n a n c i a l
and
increased
Negotiations with the Local A u t h o r i t i e s
been begun,
the
is
however,
t o a method
reasonable
Exchequer.
yet