HC Deb 03 March 1938 vol 332 cc1257-8
17. Mr. Lawson

asked the Minister of Labour whether he has yet received the report of the Unemployment Insurance Statutory Committee upon the financial condition of the Unemployment Fund; when the report will be published; and whether he can make a statement upon the action which he proposes to take upon any recommendations in the report?

Mr. E. Brown

Yes, Sir. The Committee's reports on the General and Agricultural Accounts of the Unemployment Fund have been laid and copies will be available to members at seven o'clock to-day. As regards the General Account, the Committee recommend by a majority that there should be an increase from 9s. to 10s. in the weekly rate of benefit in respect of wives and other adult dependants, and an increase in the maximum period of benefit to which contributors with good insurance records are entitled. The cost is estimated at £1,500,000 per annum, and is to be covered in part through repayment of £20,000,000 of debt out of reserves. As regards the Agricultural Account, the Committee recommend that the waiting period should be reduced from six to three days, that the joint weekly rate of contributions in respect of contributors aged 18 and upwards should be reduced by ½d. for each party, that the weekly rate of benefit for young men between the ages of 18 and 21 should be increased from 10s. 6d. to 12s., and that the condition requiring payment of ten contributions as a requalification for benefit should be abolished except where the applicant has drawn the maximum period of 300 days of benefit in the year. The cost is estimated at £222,500 per annum. I propose, subject to Parliamentary approval, to give effect to these recommendations.

Mr. Lawson

While appreciating the advance, may I ask the right hon. Gentleman what is the total amount of the balance now in the fund at his disposal and what is the amount that it has been decided to pay off the debt? Will not the balance allow of a larger rise?

Mr. Brown

Perhaps the hon. Gentleman will await the report. The amount to be applied to repayment of debt is £20,000,000. The remainder of the balance is a prudent reserve against any bad times that may come. There is also a surplus of about £7,500,000 which will help to finance these and other improvements over a cycle of eight years.

Mr. Lawson

Are we to take it that it has actually been decided to take £20,000,000 in repayment of debt?

Mr. Brown

That is so.

Mr. Lawson

Would not that make it possible to give higher advances?

Mr. Brown

No; £20,000,000 means £500,000 a year.