TO AID UNEMPLOYED

Hawke's Bay Herald-Tribune, Issue 6, 22 January 1937, Page 6

TO AID UNEMPLOYED

Press Association.)

How British Insurance Scheme Works ADVISER FOR DOMINION

(By Telegraph—

WELLINGTON, Jan. *2. Details of the operation of the unemployment insurance scheme in GrCat Britain were given yesterday by Mr. G. H. Ince, Chief Insurance Officer of the British Miffistry of Labour, who is m Wellington at the invitation of tho New Zealand Government to place at its disposal the experience gained in operating the British scheme. In England there had been operating for 25 years, Mr. Ince said, a eompulsory contributory scheme of unemployment insurance covering the great majority of the work-people of the country. About 14, 000,006 were in* bured under the general scheme and 750,000 under a special ngricultural scheme which carrled different rates of contributions and lower benefits. The rate of contribution for an adult male nnder the general scheme, was 9d a week, the employer paid 9d and the State 9d. There were differential rates for juveniles fronl 18 to 21 years, and people were insured from the time they left school, when the rate varied from 2d to 9d a week; An adult woman paid 8d a week PAYMENT TO UNEMPLOYED. A single enan who became unemployed was entitled to druw 17/- » week. A inarried man obtained 26/- a week, with an allowance of 3/- for every dependent child. Women 's rates and those for juveniles were lower. A man could obtam from 26 to 39 weeks' bonelit in a year, depending on his contribution record. "The outstandiiig feature of unemployment insurance," Mr. Ince continued, ' ' is that a man obtains the benefit as of right by virtue of the contributions he has paid. Accordingly, he is given a measure of security and the assuranee when he is in employment that if he loses his job he will be entitled as of right to a benefit of a defiiuce amount irrespective of and without inquiry into his means or resources. This enables him to keep his selfrespect, as the payments made to him are of right and not a charity. "The scheme, ■vshich is compnlsory, is working extremely well. In 1935 the fuhd showed an excess of incooie over expenditure of £11,500,000, und at the end of 1935 there. was a credit balance of £21,500,000. I have not the 1936 figures' available, but I believe there has been another substpntial increase and that in spite of the fact that in 1935 the children's benefit waa increased from 2/- to 3/- and the contributions xeduced from lOd to 9d." UNEMPLOYMENT ASSISTANOE. " Complementary to the Insurance scheme, we have an nnemployment assistance scheme. Its purpose is toTelieve unemployed workefs wno are either outside the seope of the * insurance or who have exhansted their bene-, fit rights under the scheme. The a»sistance scheme provides a «n.m with a , c.ash payment, provided he proves_ he is in need of it, and tho payment is made in aecordanee with his means. The money for this assistance comes out of the Consolidated Fund. "Unemployment insurance," Mr Ince said in conclusion, "has been of gteat vhlue in Great Britain, particularly during the depression. Oue great advantage is that we can build up a fund to pay out during the bad years, and this helps to fiatten out the steepness ot the trade cycle."