§ 39. Mr. LAWSONasked the Minister of Labour if he will state the total amount saved on unemployment benefit since the reduced rates came into operation in 1931 and the total amount saved since the operation of transitional payments?
§ Sir H. BETTERTONBetween October, 1931, when the new rates of benefit were introduced, and the end of March, 1934, the consequent reduction in the amount of insurance benefit paid to persons who continued in receipt of benefit averaged about £5,500,000 per annum. In approximately the same period, the amount paid under the transitional payments scheme averaged about £21,000,000 a year less than the sum that would have been paid if it had been possible to continue the payment of benefit to all claimants and to do so at the old rates.
§ 40. Mr. LAWSONasked the Minister of Labour if he will state the cost of restoring unemployment benefits to their 1931 standard on the basis of the present unemployment figures; and if he will state the cost of abolishing the means test on the same basis?
§ Sir H. BETTERTONOn the basis of the present Live Register, about 2,200,000, and with the existing conditions for the receipt of benefit, the cost to the Unemployment Fund of restoring the rates of unemployment benefit to the October, 1931, figures would be about £4,000,000 a year. If the needs test were abolished and the October, 1931, benefit rates were applied to transitional payments, the cost to the Exchequer would be about £20,000,000, per annum.