The Unemployment Fund's Prosperity
When the Unemployment Insurance Fund was put on a sound financial basis shortly after the financial crisis of 1931 it inherited a heavy debt whose repayment within ten years few would have expected. But in March, 1941, the last of it was paid from the excess of receipts over expenditure, and from that time on a credit balance has been rapidly accumulating. The net balance at the Lnd of 1941 amounted to £84,000,000, and by the end of this year, if the country is still at war, it is expected to reach the huge total of Lrno,000,000. This result, of course, is due to the absorption of the unemployed in war-time industry, while contributions from State, employers and employed pour in in increasing volume. The disposal of this vast sum rests with the Unemployment Insurance Statutory Committee, of which Sir William Beveridge is chairman. Its report on the financial position at the end of last year, just laid before Parliament, points out that various courses were open to the Committee. It might decide to reduce contributions, or increase
benefits, or leave the balance to grow bigger still against a rainy The employers have tended to favour the first course and the unions the second, but the Committee has wisely decided to ap the principles of insurance with strict regard to future possibi:i The end of the war will lead to industrial dislocation which v certainly produce severe unemployment unless scientific measu are taken to avoid it. Very big reserves ought to be kept mei is certain that such measures will be taken and the threat of employment is demonstrably removed. The Committee must minister the Fund on correct insurance principles. It is great merit of the reconstituted scheme that it rests on insuran and nothing else, and knows nothing of the " dole " in the derogate sense of the term. The decision to guard the enormous balan under present conditions is perfectly sound.
Previous page
