HC Deb 18 November 1937 vol 329 cc548-9
9. Mr. Leonard

asked the Minister of Labour the cost of administration of the Unemployment Assistance Board, and its percenatge to the total cost of unemployment assistance?

Mr. E. Brown

The cost of administration of the Unemployment Assistance Board during the year ended 31st March, 1937, was £4,387,000, including about £2,750,000 in respect of the cost of services rendered by the Ministry of Labour and other Government Departments. This represents about 11.7 per cent. of the amount of £37,459,000 paid out by way of unemployment allowances or 10.5 per cent. of the total cost of unemployment assistance.

Mr. Leonard

Will the Minister inquire into the administrative costs of the Unemployment Assistance Board, in view of the fact that the administrative costs of public assistance throughout the country average about 4 or 4½ per cent.?

Mr. Brown

The hon. Member knows that in the majority of cases there is not, under public assistance, the personal visitation and care that there is under the Board.

Mr. Graham White

Can the Minister say why, the administrative costs of the Board are nearly double, while the number of cases to be dealt with is only half what it was when the scheme was initiated?

Mr. Brown

The hon. Member knows that this is a service of a specialised character which has been increasingly developed in the country, as the best method this country has ever known of dealing with the difficult problem of the able-bodied unemployed person who has not worked for a long time.

Mr. Leonard

In view of the other figures of the number of people found without means of support, does not the Minister think that this is very high?

Mr. Brown

I could not accept that suggestion.

Mr. Lawson

Is not this an excessive cost having regard to the remarkably small amount saved, and does he think it is worth while chasing these poor men about for this?

Mr. Brown

That is a matter for debate. I do not accept that point of view at all.

Mr. Herbert Morrison

Is not the Minister aware that public assistance authorities do a great deal of personal investigation—are indeed, required to do so by the Minister of Health—and will not the Minister make such inquiries as will show whether his Department and the Unemployment Assistance Board are not unduly extravagant in administrative costs?

Mr. Brown

I do not believe that is so. The right hon. Gentleman will notice that I used very careful words there. Some public assistance authorities do a good deal of personal investigation, but anyone who takes the field as a whole will agree with my conclusions that the Board's system of personal investigation is by far the most economical that has ever been devised.