Public Assistance, Liverpool.

Oral Answers to Questions — Unemployment. – in the House of Commons on 17th June 1935.

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Photo of Mr Joseph Cleary Mr Joseph Cleary , Liverpool Wavertree


asked the Chancellor of the Exchequer the figures showing the Government's share of the financial burden of the able-bodied unemployed in Liverpool and the proportion left to be borne by the Liverpool corporation?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I have been asked to reply. As the answer involves a number of figures, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

Photo of Mr Joseph Cleary Mr Joseph Cleary , Liverpool Wavertree

Can the right hon. Gentleman say whether the figures will substantiate the claim that the Government are bearing 97 per cent. of the cost?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Yes, Sir; I think that generally is so. The figure is between 94 and 95 per cent.

Following is the answer:

The following statement gives the desired information, the figures being estimates of the annual amounts of the different items:—

(1) Expenditure of the Council on relief to the able-bodied unemployed to be transferred to the Unemployment Assistance Board (or, until the second appointed day, met by the grant under the Unemployment Assistance (Temporary Provisions) (No. 2) Act, 1935)1,030,000
(2) Unemployment Assistance to persons already transferred to the Board1,530,000
(3) Contribution by the Council under Section 45 of the Unemployment Assistance Act, 1934260,000
(4) Amount of the block grant under the Local Government Act, 1929, appropriate to the £1,030,000 of expenditure to be transferred to the Board180,000
(5) Net future charge to the Council—difference between (3) and (4)80,000
(6) Future charge to the Exchequer—
(a) Unemployment Assistance1,530,000
(b) Transferred expenditure less Council's contribution770,000
(c) Block grant appropriate to transferred expenditure180,000
Total of Item (6)2,480,000
(7) £2,480,000=96.9 per cent. of2,560,000
£80,000 = 3.1 per cent. of2,560,000

The cost of relieving able-bodied persons who are outside the scope of the Unemployment Assistance Act, 1934, is not included in the above calculations. Actual figures are not available, but returns made by the Council in 1934 indicate that approximately £75,000 per annum was expended by the Council in respect of persons relieved on account of unemployment who would not be transferred to the Board. The proportion of the block grant appropriate to the £75,000 is £13,000, giving a net figure of £62,000. If this figure of £62,000 be added to the £80,000 shown above, the total future charge to the ratepayers would be £142,000, and the relative proportions of the expenditure to be borne by the Exchequer and by the Council would then be as follow:—

Per cent.