HC Deb 07 December 1936 vol 318 cc1798-800

Considered in Committee under Standing Order No. 69.

[Captain BOURNE in the Chair.]

Motion made, and Question proposed, That it is expedient to make provision—

  1. (a) for the extension until the thirty-first day of March, nineteen hundred and thirty-seven, of the period in respect of which grants are to be paid to local authorities out of moneys provided by Parliament under section one of the Unemployment Assistance (Temporary Provisions) (No. 2) Act, 1935;
  2. (b) for the making of adjustments in the instalments of those grants payable to the several local authorities in respect of the period beginning with the first day of April, nineteen hundred and thirty-six, and ending with the thirty-first day of March, nineteen hundred and thirty-seven, but so that the aggregate amount of the grants payable under the said section one be not affected;
  3. (c) for the repeal of sub-sections (2), (3), and (4) of section forty-five of the Unemployment Assistance Act, 1934; and
  4. (d) for purposes incidental to the matters aforesaid."—[King's Recommendation signified.]—[Sir K. Wood.]

12.20 a.m.

The MINISTER of HEALTH (Sir Kingsley Wood)

I desire to say just a few words on this matter, with which hon. Members will be familiar. The first part of the Resolution provides for the extension until 31st March, 1937, of the period in respect of which grants are paid to local authorities under Section 1 of the Unemployment Assistance (Temporary Provisions) Act. Hon. Members will be aware that this is the Second Appointed Day, and therefore it is only necessary to continue the payments of grants over that particular period. From that date the Unemployment Assistance Board will become responsible for the persons in respect of whose relief these grants are being paid, and the necessity for the grants will cease. For this further period, from 1st April, 1936, to 31st March, 1937, grants will be continued on the same basis as before. I need add only one further word about paragraph (b), which provides for making adjustments. The basis which is provided is by no means unsatisfactory to the great majority of local authorities, who have been more than compensated by such grants. In fact, the great majority of the councils in question, in respect of the period from 1st April, 1935, to 31st March, 1936, are some £600,000 better off than they would have been if grants had been based on their actual expenditure during that period, and estimates made for the later period show that the net surplus from 1st April, 1936, to 30th September, 1936, will have been even more.

It is right that the Committee should know that there have been a few losers, and at 30th September, 1936, some eight councils had lost about £47,000 and were therefore insufficiently compensated by the grant. Therefore, I am proposing, after consultation with the local authorities, to meet these hard cases, and the modification proposed in paragraph (b) will empower the Minister of Health, after consultation with the Associations of Local Authorities, to make an increase in the grant in such cases. The additional amounts will be provided by a reduction in the grants to those authorities whose expenditure resulting from the postponement is estimated to have been less than the grant they would have received on the prescribed basis.

The deficiencies will be very few in number and relatively small in amount. The Associations of Local Authorities have agreed to this principle of deduction, and the exact method will be determined after consultation with them, and will probably be provided on a proportionate basis. Finally, I would like to say that it is estimated that the grants for the year ending 31st March, 1937, will amount to £3,990,000 in England and £1,620,000 in Scotland. I hope the Committee will feel that this is a reasonable settlement of a difficult matter. As far as the local authorities are concerned, I am glad to say that they have met me in this matter. As the Committee will see, the great majority of them have considerably benefited as a result of the arrangement made some little time ago, and we are taking a. step to meet the needs and necessities of the few authorities who are losers under that arrangement.

Resolved, That it is expedient to make provision—

  1. (a) for the extension until the thirty-first day of March, nineteen hundred and thirty-seven, of the period in respect of which grants are to be paid to local authorities out of moneys provided by Parliament under Section one of the Unemployment Assistance (Temporary Provisions) (No. 2) Act, 1935;
  2. (b) for the making of adjustments in the instalment of those grants payable to the several local authorities in respect of the period beginning with the first day of April, nineteen hundred and thirty-six, and ending with the thirty-first day of March, nineteen hundred and thirty-seven, but so that the aggregate amount of the grants payable under the said Section one be not affected;
  3. (c) for the repeal of Sub-sections (2), (3), and (4) of Section forty-five o fthe Unemployment Assistance Act, 1934; and
  4. (d) for purposes incidental to the matters aforesaid."

Resolution to be reported To-morrow.

The remaining Orders were read, and postponed.

It being after Half-past Eleven of the Clock upon Monday evening, Mr. DEPUTY-SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.

Adjourned at Half-past Twelve o' Clock.