number of cases in which the Ministry was called upon to advise the Committee as to the unemployment position, but in a large number of these a detailed investigation as to the industrial prospects of the area, so far as they could be foreseen, as well as into the prevailing unemployment situation, was found necessary. While no fresh unemployment programme was initiated by the Ministry of Transport, that department continued to make grants towards the cost of schemes of road construction and improvement which had the incidental effect of relieving unemployment.

Unemployment (Relief Works) Act, 1920.

The Unemployment (Relief Works) Act, 1920, was extended for a further period to 31st December, 1927. Comparatively few applications for certificates under the above Act were received during the year. The number of certificates issued under Sections 1 and 2 of the Act were 14 and 7 respectively. In three cases certificates were refused owing to the fact that the volume of unemployment in the areas concerned did not justify the issue of a certificate.

General.

The numbers of men employed on State-assisted schemes for the relief of unemployment in Great Britain at 31st December, 1927, and at the corresponding date in 1926, according to returns received by the Department, were as below:

These figures do not take account of the employment provided indirectly, e.g., in the preparation and transport of materials, &c.

CHAPTER III.

UNEMPLOYMENT INSURANCE.

INTRODUCTORY.

The outstanding event of the year in connection with Unemployment Insurance was the passing of the Unemployment Insurance Act, 1927. In the Report on National Unemployment Insurance to July, 1923, the opinion was expressed that the time had almost come for taking stock of the situation in all its aspects and deciding upon that line of development which might appear to offer the best chance of reaching a solution of the permanent problem of a fluctuating demand for labour. In the Report for 1925 it was stated that the next step in the direction of review had been taken in the appointment by the Minister of a Committee under the chairmanship of the Right Hon. Lord Blanesburgh, G.B.E., to review the whole system of Unemployment Insurance. The personnel of the Committee was as follows:

The Lord Blanesburgh, G.B.E. (Chairman),

Miss Margaret Bondfield,

Sir James Curtis, K.B.E.,

Professor Carless Davis, C.B.E.,

Mr. J. Hamilton,

Sir Hugo Hirst, Bart.,

Mr. Frank Hodges,

Mr. A. Holmes,

Mr. Laurence Holt,

Sir James Lithgow, Bart.,

Sir William McLintock, K.B.E., C.V.O.,

Viscountess Milner,

Sir Glynn Hamilton West.

It will be seen that the Committee was fully representative of all the interests concerned. It included, besides employers and workers, two Chairmen of Local Employment Committees, a recognised authority on Poor Law, an accountant from the City and other members who might be presumed to be representative of the general public.

The Committee spent over a year on its task, and obtained in the course of numerous inquiries the carefully considered opinions of the Local Employment Committees, of the representative organisations of employers and the trade unions, and of the Poor Law Authorities. It was able to reach unanimous conclusions on all the matters remitted to it. Its report, dated 31st January, 1927, and published on 11th February, 1927, attracted wide interest and has materially helped to clarify the problems of unemployment and the measures required for its relief.

The Act of 1927, which received the Royal Assent on 22nd December, 1927, follows in the main the recommendations of the Blanesburgh Committee and its principal provisions may be summarised as follows:

Unemployment benefit is made payable as of right where the requisite conditions are satisfied, and the discretionary power of the Minister to place restrictions on the grant of benefit (see Report for 1925, p. 65) is abolished, extended benefit as such disappearing and the determination of all questions arising on claims to benefit becoming a matter for the Insurance Officer, Courts of Referees and Umpire;

Provision is made for the periodical review by a Court of Referees of claims on which benefit has been received for an aggregate of thirteen weeks within a prescribed period (roughly, six months);

A new class of insured persons is created, namely, those between the ages of 18 and 21;

The rates of benefit are modified;

Certain changes are made in the classes in respect of whom dependants benefit is payable;

Alterations are made to the statutory conditions for benefit; The trade dispute disqualification (see Report for 1923-4, p. 133) is varied;

The continuity rule (see Report for 1923-4, p. 133) is altered by extending from 6 weeks to 10 weeks the bridge between any two periods of continuous unemployment;

Power is given to pay out of the Unemployment Fund grants towards expenses incurred in respect of attendances of unemployed persons between 16 and 18 years of age at approved courses of instruction; and

Various minor amendments in the existing scheme are made.

The new Act came into force, except as otherwise expressly provided, on 19th April, 1928. Certain of its provisions, however, do not take effect until July, 1928, and the Act contains transitional provisions, the general effect of which is that certain of the new conditions which might otherwise bear hardly upon applicants for benefit are only to come into force gradually, their operation being spread over a period of about two years from April, 1928.

It would be unwise to attempt to forecast the future, but the hope may be expressed that, in the absence of unforeseen circumstances, the scheme, as amended by the Act of 1927 (apart from the transitional provisions), may prove to contain something like a permanent solution of that part of the problem of the fluctuating demand for industrial labour which relates to the provision of assistance to unemployed workers. Of the persons likely to need

assistance owing to unemployment the Unemployment Insurance Acts cover practically all, except workers in agriculture and private domestic service. The Blanesburgh Report says (para. 83), "In its true conception an unemployment insurance scheme should provide for the great bulk of genuine unemployment in a manner honourable to those whom it benefits"; again (para. 81), "We have no wish so to limit insurance benefits that persons genuinely unemployed shall be driven to apply for Poor Law relief.. A minimum number of contributions is necessary to ensure that benefits are paid only to insured persons and to prevent the Fund from degenerating into an able-bodied pension scheme. Within these limits, which are designedly broad, we think that all genuinely unemployed persons who are insured in the scheme should be able to claim provision from the Fund to which they have subscribed so long as the Fund is able to shoulder the whole burden"; finally (para. 76), If it is desired, as we believe it is, to include in an insurance scheme the great bulk of genuine unemployment and not to drive to the. Poor Law persons who are out of work through no fault on their own part, our proposed scheme would realise that object."

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CONTRIBUTIONS.

Rates of Contributions.

No changes in the rates of contributions set out on p. 35 of the Report for 1926 were made during the year. It was necessary, however, to make arrangements in anticipation of the changes in contributions in respect of persons insurably employed after reaching the age of 65. As a result of amendments of the Unemployment Insurance scheme included in the Widows', Orphans', and Old Age Contributory Pensions Act, 1925, the payment of contributions by an employed person ceases from 2nd January, 1928, at the age of 65. This amendment places the person of 65 or over in the position of an exempt person, which means that for him only the employer's part of the contribution is payable. As similar provisions apply in the case of the Health and Pensions scheme, the Ministry of Labour, the Ministry of Health and the Scottish Board of Health agreed that a joint scheme should be set up for the simultaneous payment of both Pensions and Unemployment Insurance contributions. It was further agreed that the administration of this arrangement should be undertaken by the Health Departments on behalf of the Ministry of Labour, and all the necessary measures were taken towards the end of 1927.

Amounts of Contributions.

The amounts of contributions to the Unemployment Fund from employers, employed persons and the State, since July, 1924, are shown in the table following:

(a) Corresponds with published accounts of Unemployment Fund.

Method of collecting Contributions.

No alteration has been made in the method of stamping unemployment books or in the general arrangements under which an employer may stamp unemployment books at extended intervals or in the week after payment of wages.

The number of employers having arrangements, in December, 1927, for stamping at intervals and the number of employed persons concerned are shown below:

The number of employers having arrangements, in December, 1927, for stamping in the week after payment of wages was 152. These arrangements cover approximately 155,000 employed persons.

The three special arrangements under Section 31 of the Unemployment Insurance Act, 1920, under which unemployment books and health and pensions cards may be stamped by Employment Exchanges at the cost of the employers concerned, continued