HC Deb 07 July 1913 vol 55 cc25-6
56. Mr. WORTHINGTON-EVANS

asked the Financial Secretary to the Treasury the estimated annual value of the margin between the anticipated loss to approved societies through arrears of contributions due to unemployment and the loss allowed for in the estimates of Messrs. Hardy and Wyatt?

Mr. MASTERMAN

In the financial estimates upon which the original Bill was based it was assumed that, in addition to non-payment during periods of sickness, contributions would not be paid for an average of 2.6 weeks a year. In preparing the reserve value tables the Actuarial Advisory Committee increased this period to three weeks, and societies were fully compensated for the difference in the reserve values granted. In both eases the calculations had reference to the average taken over the whole insured population. As the scheme proposed by the new Bill deals separately with each society it is impossible to say without experience to what extent the general average of arrears will be reduced by its operation, but as the Bill affords to insured persons an inducement to pay contributions in respect of periods of unemployment, there are grounds for expecting that the general average of arrears will be reduced to some- thing below the actuarial calculation, which rested upon the assumption that in respect of unemployment periods no contributions would be paid.

Mr. WORTHINGTON-EVANS

Wilt the right hon. Gentleman now answer the question on the Paper, and state what is-the estimated value of the margin?

Mr. MASTERMAN

I cannot answer it any more than I have answered it at present. It has occupied the minds of several of us, including the chief actuary, and this seems to be the only answer intelligible.

Mr. WORTHINGTON-EVANS

Could not the right hon. Gentleman and the chief actuary reduce that answer to pounds, shillings, and pence, and say how much money is involved?

Mr. MASTERMAN

I do not think so.

Mr. WORTHINGTON-EVANS

Can the right hon. Gentleman say upon what main items the Amendment Bill has been founded at all?

Mr. MASTERMAN

I have given the fullest account of what estimate has been made in the Paper issued by the chief actuary. If the hon. Gentleman wants any further reference to the estimates of unemployment in this country than appears in the memorandum of Messrs. Hardy and Wyatt I can give it.