HC Deb 07 February 1929 vol 224 cc1943-4
52. Sir W. de FRECE

asked the Chancellor of the Exchequer the cost to the Exchequer if unemployment benefit were made a national charge?

Mr. CHURCHILL

The total contributions of employers and employed towards the unemployment insurance scheme now amount to approximately £31 millions a year, and if the scheme were entirely a State charge without alteration in any other respect, this sum would have to be found by the Exchequer, in addition to its actual contribution of £12 millions. My hon. Friend will, however, realise that so fundamental a change as the abolition of all contributions would tend to have considerable reactions on the whole structure of the scheme.

Mr. HAYDAY

In addition to the £31,000,000 which now represents the contributions of employers and workpeople, is there not a figure representing the deficit; and what would be the total amount paid, say in the last year, in unemployment benefit?

Mr. CHURCHILL

The deficit which has been accruing in the last two years to the National Insurance Fund is a very small monthly proportion of the contributions by the State, the workers, and the employers.

Mr. HAYDAY

Do these figures take into account the hundreds of thousands who are returned as unemployed but are refused the right to benefit, and can the right hon. Gentleman say what would be the total amount paid in unemployment benefit if all unemployed persons had been admitted to benefit during the past year?

Mr. CHURCHILL

Obviously, I cannot.

Mr. W. THORNE

In a case where there is an overdraft, will the Fund be expected to pay this, seeing that the Bank rate is increased to-day?