HC Deb 13 December 1927 vol 211 cc2088-9
49. Mr. T. WILLIAMS

asked the Prime Minister if he is aware that the cost of administering unemployment insurance funds for the last financial year was approximately 9½ per cent, of the total expenditure, national insurance funds 13 per cent. of total expenditure, and workmen's compensation 44 per cent., including profits; and will he consider the advisability of bringing workmen's compensation under a national administration and effecting such economies as may be possible?

Sir V. HENDERSON

The figure of 44 per cent. quoted by the hon. Member applies only to the insurance companies. A large proportion, however, of the total compensation paid under the Act is paid by mutual associations of employers and uninsured employers and the cost of administration by the insurance companies must not therefore be taken to represent the cost over the whole system. The answer to the second part of the question is in the negative.

Mr. WILLIAMS

Would the hon. Gentleman say whether or not the figure referred to compensation transactions amounted to no less than £7,000,000 or £8,000,000, and is he not aware that the cost of administration of workmen's compensation insurance more than doubles the cost of administering unemployment insurance and the National Health Insurance Fund, and does he not now think it is time to take steps to minimise the expense of this Department?

Sir V. HENDERSON

I think the hon. Member hardly realises that you cannot really compare the cost of unemployment and health insurance with workmen's compensation insurance at all, because they are on an entirely different basis. The two former are on a flat rate with regard to contributions and rates of benefit; the latter is not on a flat rate and the eligibility for benefit is a much more difficult problem.

Mr. WILLIAMS

Is the hon. Gentleman not aware that the profits alone for the administration of the workmen's compensation exceed the proportion required either for administering unemployment or health insurance. Surely there is a comparison there?

Sir V. HENDERSON

I cannot accept that statement.