UNEMPLOYMENT BENEFITS

Evening Post, Volume CII, Issue 28, 2 August 1921, Page 8

UNEMPLOYMENT BENEFITS

(FROM OUR OWN CORRESPONDENT.)

LONDON, 9th June.

Because of abnormal unemployment, the Government finds itself compelled to increase the rates of contribution and to reduce the benefits under the Unemploy ment Insurance Acts of 1920-21. There is danger that the fund set up under the Acts may soon be exhausted, and the Treasury may have to shoulder, temporarily a maximum liability of £16,000,000. An Amending Bill, introduced by the Minister of Labour, raises men's contribution, after 4th July, from 4d a week to 7d, and the employers' to Bd. Benefits for men are reduced from 20s to 15s, and for women from 18s to 12s, but an extra six weeks may be added to each of the two unemployment periods down to July, 1922. To-day, with two million people unemployed and one million on short time, benefit is being paid at the rate of £2,000,000 a week, with an income from contributions of less than £350,000. The Insurance Fund, which in March last stood at 22£ millions, now stands at 8j millions, and as things are going it will only last for about another month. Given an average of lJs millions insured persons unemployed over the whole period, July, 1921, to July, 1922, the maximum deficiency which these readjustments would give at any period would be about £16,000,000, which mnst meanwhile be advanced by the Exchequer, though Dr. Macnamara said it was very reluctantly imposed upon the Chancellor.

Mr. Clynes complained that never was such an important Bill ? involving such big Considerations, introduced under the Ten Minutes Rule ; it was an amazing step, even for this Government, which had limited its action on unemployment to the Insurance Acts when there was the spectacle of unemployment becoming worse and the greatest suffering being endured. The present unemployment difficulties should be regarded as a temporary phase, and he suggested a greater use of the borrowing powers. The Government should do what many trade unions are doing—-borrowing, and pledging their credit for the future to meet the abnormal needs of the present. He and his friends would be compelled to offer all possible resistance to the measure. Leave to bring in the Bill was given by 221 to 62.

Tho recent aurora appeaers to have played havoo with telegraph, telephone, and cable lines in tho United States. Tho Western Union Tolefixapli Company reports that the magnetic disturbances accompanying the aurora on 15th May blew out fuses, injured electrical apparatus, and did other things which had never been causod by any ground and ocean currents known in the past. It appears as though the company will probably have to send out ships to drag up the cables to repair tho damage produced by straying curjoftie,