HC Deb 25 January 1940 vol 356 cc741-5
1. Mr. Ellis Smith

asked the Minister of Labour when he expects to be able to publish the report or a summary of the inquiry conducted into the cost of living for the purpose of making a revision of the basis of the cost-of-living index figure; and what action it is intended to take when the report is made?

The Parliamentary Secretary to the Ministry of Labour (Mr. Assheton)

Substantial progress has been made with the summarisation of the main results of the inquiry, but I am not yet in a position to fix a date for the publication of a report. My right hon. Friend proposes, in a few weeks' time, to appoint a small committee, including representatives of employers and trade unions, to consider certain preliminary material which will by that time he available.

Mr. Smith

In view of the urgency of this matter, will the hon. Gentleman use his influence to expedite the case of this revision?

Mr. Assheton

We are doing everything we can to hurry it on.

2. Mr. E. Smith

asked the Minister of Labour whether he will abolish the house- hold means test or at once review its present administration, in view of the fact that when a son or daughter secures an increase in wages to allow for the increased cost of living, or makes an allowance after joining the Forces, that is taken into consideration by the Unemployment Assistance Board when the parents apply for assistance?

Mr. Assheton

The Board inform me that they have given careful consideration to the treatment of resources of the kind referred to by the hon. Member and that they do not consider that any modification of the present provisions in respect of the two matters mentioned is called for. The hon. Member will be aware that in both instances the household will obtain an advantage from the improvement in its circumstances after any consequential adjustment of the applicant's allowance has been made.

Mr. Batey

Has the Board taken into consideration the fact that every increase in wages means that the people are suffering, and is the Minister aware that, if increases of wages are taken into account, the Board will simply be relieved of payment, and surely, something should be done in view of the increase of wages?

Mr. Assheton

I have pointed out that in both instances the households will obtain an advantage from the improvement in circumstances in consequence of the adjustment of the applicant's allowance.

Mr. Batey

Will the hon. Gentleman say how that can happen?

Mr. T. Smith

Can the Minister say whether, when the Board has given consideration to this matter, it has taken any evidence from industrial districts in regard to it?

Mr. Assheton

I do not think that that question arises.

3. Mr. E. Smith

asked the Minister of Labour whether and when it is intended to publish the proposed regulations received from the Unemployment Insurance Statutory Committee on the question of benefit during holiday periods and related questions; whether this House will have an opportunity of considering the regulations before he approves them; and whether he will give the names of the persons or bodies from whom he has received representations on the question of raising the income limit for unemployment insurance and a statement of the action which it is intended to take?

8. Mr. T. Williams

asked the Minister of Labour whether he is aware that large numbers of workpeople whose wages have been increased because of the increased cost of living are automatically disqualified as contributors to the Unemployment Insurance Scheme; that many of these persons have contributed to the scheme from its inception and wish to continue; and, in these circumstances, will he consider an amendment of the Act to meet their case?

Mr. Assheton

In consequence of the war the operation of the provisions of the Unemployment Insurance Act, 1939, relating to holidays has been suspended. Consequently no occasion arises, for the present, for making the Regulations referred to by the hon. Member for Stoke (Mr. E. Smith).

As regards raising the income limit for unemployment insurance, Appendix A of the Report of the Unemployment Insurance Statutory Committee on the remuneration limit for the insurance of non-manual workers, dated 7th February, 1936, contains a summary of views expressed by associations to that committee. My right hon. Friend has received a number of representations since that date and he is seeing the Trades Union Congress at their request on this subject on 5th February.

Mr. Williams

Will the hon. Gentleman represent to his right hon. Friend that there are tens of thousands of men at this moment receiving slightly increased wages, due to the increased cost of living, which just carries them over the border; and as these men have paid for 20 years and are anxious to continue their payments, will the Minister come down on the side of preserving the rights of these men, who in view of their exceeding the income limit will now have to go out of the scheme?

Mr. Assheton

The hon. Member will appreciate that their rights are preserved in any event for 18 months, but I will certainly bring that representation to the notice of the Minister of Labour.

Mr. Lawson

Will the hon. Gentleman draw the attention of the Minister to the very important fact that, had these regulations been put into operation and the Christmas holidays had counted, as was originally intended, it would have caused very great hardship among the workers?

9. Mr. A. Jenkins

asked the Minister of Labour whether the Unemployment Assistance Board are now granting increases in weekly allowances to unemployed persons in respect of the increase in the cost of living whose allowances have been previously limited by the wage-stop provision; and if any instruction has been issued to the area officers on the question?

12. Mr. Mainwaring

asked the Minister of Labour what complaints he has received from unemployed men against whom the stop-wage regulation operated, and who now fail to benefit from the recently improved scales and winter allowances; and what is he prepared to do to remedy the position?

Mr. Assheton

The increases in the scale rates prescribed in the Regulations recently approved by Parliament do not override the wage-stop provisions in the principal Regulations, but officers have been reminded in connection with the review of allowances under the new Regulations that regard must be paid to any special circumstances or needs of an exceptional character, and in a number of cases where such circumstances or needs exist, allowances in excess of wage-stop have been granted.

Mr. Jenkins

Can the Minister say whether or not it is now generally held in most of the districts in the areas that no increase can be granted where the wage-stop scale has been in operation; and is not he conscious of the fact that it is creating very great hardship upon many of these families?

Mr. Assheton

I think the answer that I have already given deals with that point.

Mr. Mainwaring

Can the hon. Gentleman say whether the retention of the wage-stop at its present level was a deliberate policy or an oversight?

Mr. Assheton

I explained the matter when I introduced the new Regulations.

Mr. James Griffiths

Is this wage-stop fixed at the figure in operation when the men were last employed; and, now that the wage is considerably higher because of the increased cost of living and wage increases, will the Minister revise the figure of the wage-stop?

Mr. Assheton

I can assure the hon. Member that that point is taken into account. The current rate of wages is considered rather than the last rate of wages a man was receiving.

Mr. Jenkins

Does the hon. Gentleman realise that when the wage-stop clause was made applicable to these cases, these families were already below the level of the allowances generally allowed by the Board, and that, now the increase in the cost of living has taken place, the position has become much more acute; and does he not realise that steps ought to be taken immediately, so as to help these men?