HC Deb 17 June 1935 vol 303 cc15-6
51. Mr. CLEARY

asked the Chancellor of the Exchequer the figures showing the Government's share of the financial burden of the able-bodied unemployed in Liverpool and the proportion left to be borne by the Liverpool corporation?

The MINISTER of HEALTH (Sir Kingsley Wood)

I have been asked to reply. As the answer involves a number of figures, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.


Can the right hon. Gentleman say whether the figures will substantiate the claim that the Government are bearing 97 per cent. of the cost?


Yes, Sir; I think that generally is so. The figure is between 94 and 95 per cent.

Following is the answer:

The following statement gives the desired information, the figures being estimates of the annual amounts of the different items:—

(1) Expenditure of the Council on relief to the able-bodied unemployed to be transferred to the Unemployment Assistance Board (or, until the second appointed day, met by the grant under the Unemployment Assistance (Temporary Provisions) (No. 2) Act, 1935) 1,030,000
(2) Unemployment Assistance to persons already transferred to the Board 1,530,000
(3) Contribution by the Council under Section 45 of the Unemployment Assistance Act, 1934 260,000
(4) Amount of the block grant under the Local Government Act, 1929, appropriate to the £1,030,000 of expenditure to be transferred to the Board 180,000
(5) Net future charge to the Council—difference between (3) and (4) 80,000
(6) Future charge to the Exchequer—
(a) Unemployment Assistance 1,530,000
(b) Transferred expenditure less Council's contribution 770,000
(c) Block grant appropriate to transferred expenditure 180,000
Total of Item (6) 2,480,000
(7) £2,480,000=96.9 per cent. of 2,560,000
£80,000 = 3.1 per cent. of 2,560,000

The cost of relieving able-bodied persons who are outside the scope of the Unemployment Assistance Act, 1934, is not included in the above calculations. Actual figures are not available, but returns made by the Council in 1934 indicate that approximately £75,000 per annum was expended by the Council in respect of persons relieved on account of unemployment who would not be transferred to the Board. The proportion of the block grant appropriate to the £75,000 is £13,000, giving a net figure of £62,000. If this figure of £62,000 be added to the £80,000 shown above, the total future charge to the ratepayers would be £142,000, and the relative proportions of the expenditure to be borne by the Exchequer and by the Council would then be as follow:—

Per cent.
Exchequer 94.6
Council 5.4