BRITAIN’S UNEMPLOYED

Waikato Times, Volume 114, Issue 19118, 1 December 1933, Page 5

BRITAIN’S UNEMPLOYED

NEW INSURANCE BILL. DRASTIC AMENDMENTS. COMPREHENSIVE LEGISLATION. (Omclal Wireless.) RUGBY, Nov. 30. The new Unemployment BUI, the most important Government measure In the first part of the present session, was debated In the House of Commons to-day. It makes drastic amendments in the previous unemployment Insurance aots, establishes the solvency of the Insurance fund, provides for outside unemployment Insurance for assisting and promoting the welfare of able-bodied persons, and extends the poriod of benefit. In -moving the second reading the Minister of Labour, Sir Henry Betterton, described the Bill as “one of the most -comprehensive pieces of social legislation introduced for over a generation.” It represented the logical development of the policy pursued by every party in Great Britain during the last 30 years., It was significant that people in other -countries who previously had denided the British system were now in their bewilderment of perplexity, hastily improvising an imitation of it. The present bill was based on the fundamental principle that on the one hand there should be a -contributory insurance scheme covering as much of the Held as possible, and on the ■other hand an outside body assuming general responsibility for the relief of able-bodied unemployed. Bill’s Broard Principles. The broad principles on which the insurance part of the bill was based were: —Firstly, that the scheme be financed by contributions from employees, workers and the State; secondly, that the benefits be dependent on contributions; thirdly, that the scheme be placed on a solvent self-supporting basis. No change- was made in the provisions which insured persons who had paid 30 contributions in the last two years were qualified for a minimum period of benefit for 26 weeks. That period -of 26 weeks would, however, he extended to -contributors with -the best record. When the present Government took office excessive expenditure on the ordinary insurance account was being made at the rate of £60,000,000 yearly. At present, following the recent improvement in the employment, the rate of increased income would exceed the rate of expenditure by about £8,500,000 yearly -on a live register of £2,500,00-0. The Minister said he proposed to use this balance by extending the period of benefit to persons with the best industrial record. -For instance, if men during the previous five years had paid all their contributions, which were 260, and had drawn no benefit then such man would be entitled ta 26 weeks In addition to the 26 weeks which he now got as -a minimum. On the contrary, where the record was not so good, where man had had some benefit and -his contributions had not been fully paid, then he would -get, according to the state of his balance, something less than 26 weeks. There would be 167,000 -more persons entitled to benefit, and fewer persons would -be subjected to means test. The Bill not only put the Insurance scheme on a sound financial basis for the ..Immediate future, but it also established machinery to enable it to be kept solvent. The second part of the bill was based on three- main principles—firstly, that assistance be proportionate to “the needs; secondly, that a worker who had been long unemployed -might re-ceive assistance other than, and in addition to cash payments; thirdly, that the State should accept general responsibility for their Industrial able-bodied populace outside Insurance.