Oral Answers to Questions — National Finance. – in the House of Commons at on 7 February 1929.
Colonel Sir Walter De Frece
, Blackpool
asked the Chancellor of the exchequer the cost to the Exchequer if unemployment benefit were made a national charge?
Mr Winston Churchill
, Epping
The total contributions of employers and employed towards the unemployment insurance scheme now amount to approximately £31 millions a year, and if the scheme were entirely a State charge without alteration in any other respect, this sum would have to be found by the Exchequer, in addition to its actual contribution of £12 millions. My hon. Friend will, however, realise that so fundamental a change as the abolition of all contributions would tend to have considerable reactions on the whole structure of the scheme.
Mr Arthur Hayday
, Nottingham West
In addition to the £31,000,000 which now represents the contributions of employers and workpeople, is there not a figure representing the deficit; and what would be the total amount paid, say in the last year, in unemployment benefit?
Mr Winston Churchill
, Epping
The deficit which has been accruing in the last two years to the National Insurance Fund is a very small monthly proportion of the contributions by the State, the workers, and the employers.
Mr Arthur Hayday
, Nottingham West
Do these figures take into account the hundreds of thousands who are returned as unemployed but are refused the right to benefit, and can the right hon. Gentleman say what would be the total amount paid in unemployment benefit if all unemployed persons had been admitted to benefit during the past year?
Mr Winston Churchill
, Epping
Obviously, I cannot.
Mr William Thorne
, West Ham Plaistow
In a case where there is an overdraft, will the Fund be expected to pay this, seeing that the Bank rate is increased to-day?
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
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