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7. Relief of the Destitute Able-Bodied Unemployed.-Taking the whole year into consideration the unemployment position in Scotland during the year 1926 was considerably worse than in the previous year. According to the monthly figures published in the Ministry of Labour Gazette, the average number of persons registered as unemployed at the Employment Exchanges in Scotland was 209,326, representing nearly 16 per cent. of the insured population. In the years 1924 and 1925 the corresponding figures were 156,117 (nearly 12 per cent.) and 194,378 (14.7 per cent.) respectively. At the beginning of the year there were indications of a distinct improvement in the industrial situation. Following the usual seasonal increase in unemployment in January, when the number of persons registered as unemployed was 198,550 (15 per cent.), there was a steady improvement in the position until the end of April, when the number of unemployed had fallen to 170,541 (nearly 10 per cent.). From the beginning of May onwards employment was seriously affected, in the first part of that month by the general strike and thereafter until December by the stoppage in the coalmining industry. At the end of May the number of registered unemployed had risen to 235,371 (nearly 18 per cent.), and from then until the end of November the number varied between 220,000 and 230,000. After the settlement of the dispute there was some improvement, and at the end of the year the unemployment figure had fallen to 202,670 (15.3 per cent.). It should be noted that the figures relating to the months of the year from May onwards are exclusive of persons in the coal-mining industry who ceased work on account of the dispute which commenced on 1st May.

A more or less complete stoppage of work in so important a key industry as the coal-mining industry, in which in Scotland some 147,000 workers are normally employed, was bound to have a serious effect either directly or indirectly on industry in general, and particularly on those industries in which the use of coal as a raw material is essential. In the pig-iron industry the percentage of unemployment over the whole of Great Britain and Northern Ireland rose in June to over 70, and over the last eight months of the year averaged 60-7 per cent. as compared with 16.4 per cent. in the first four months. In the steel industry the percentage of unemployment reached 581 in May, averaging 51-4 for the last eight months, compared with 20-8 for the first four months. An examination of the published figures relating to Scotland shews that in the shipbuilding and ship-repairing industry the average percentage of unemployment in Scotland over the whole year was 44-8, attaining a maximum of 53.9 in October. In the marine engineering industry the average over the year in Scotland was 25 per cent., with a maximum of 38.3 per cent. in November, and in the general engineering industry the average was 21 per cent., with a maximum of 24.5 per cent. in November. An analysis of the effect of the coal stoppage on industry published in the Ministry of Labour Gazette for Janu

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ary, 1927, indicates that the increase in unemployment during the period May to December was most marked in the coalmining areas, which roughly correspond with the industrial areas of Scotland.

The increase in unemployment seriously affected the expenditure of parish councils in the industrial and semi-industrial districts of Scotland. As has been stated, parish councils in the coal-mining areas were in the last eight months of the year mainly engaged in dealing with the problem of destitution among the dependants of persons concerned in the dispute in the coalmining industry. Apart from this special problem, which tended to obscure the other activities of parish councils, the year 1926 would have been noteworthy by reason of the great increase in the expenditure of parish councils on the relief of the destitute able-bodied unemployed.

Reference was made in the last Report to the steady and persistent increase in the expenditure of parish councils on relief to the unemployed in 1925. The increase in that expenditure has, with slight checks, continued throughout 1926, and at the end of the year the difficulties of parish councils in dealing with this question were likely to cause some embarrassment. Complete figures are not available in regard to the total expenditure on the relief of the unemployed for the year to 31st December, 1926, but the sum expended on aliments alone to the unemployed by about 100 parish councils in industrial areas was approximately £1,346,300, an average of £25,871 per week, compared with £725,373, an average of £13,949 per week, in the previous year. The expenditure in 1926 was, in fact, greater than the expenditure in any previous year since parish councils were empowered in 1921 to grant relief to destitute able-bodied applicants. During the first four months of the year, in spite of a general fall in the number of persons unemployed, the expenditure of parish councils on relief to the unemployed shewed no corresponding diminution and varied between £20,000 and £23,000 per week. In May, at the close of the general strike, the weekly expenditure had risen to nearly £28,000. Throughout the summer and autumn it remained fairly constant at about £27,000 until October, when it again tended to increase, and, in December, when a considerable number of miners who had been refused relief for themselves during the progress of the dispute and who, following the termination of the dispute, were not able to be reabsorbed in the industry, became entitled to relief as destitute able-bodied persons unable to obtain employment, the weekly expenditure attained the figure of £38,405.

In view of the serious financial position which faced many parish councils, circulars were issued to all parish councils in industrial and semi-industrial areas recommending the councils to take all possible steps to conserve their financial resources. With a view to attaining that object, parish councils were particularly requested to consider the scale of relief paid to the destitute able-bodied unemployed, and it was recommended that the scale

should not normally exceed the scale of benefits payable under the Unemployment Insurance Acts. It was felt that, having regard to a fall in the index figure of the cost of living, as ascertained by the Ministry of Labour, since the scale of September, 1921, was devised, the scale of benefits under the Unemployment Insurance Acts was, in the normal case, reasonably adequate for the relief of destitution caused through unemployment, and that the return to normal conditions of trade would be impeded by the payment of scales that were higher than was necessary. Parish councils were informed in a circular issued in July that sanction would not be given to any application for loans under the Emergency Acts or to temporary overdrafts required by councils affording relief to the dependants of miners unless the scale of relief was reduced within the limits recommended, and that policy was consistently followed throughout the latter part of the year. Moreover, in considering such applications for authority to borrow, sanction was not given until parish councils had reconsidered the scale of relief being paid to the ordinary poor, and had effected such reductions in the scale as could reasonably be made.

The following scale was recommended as the maximum scale that should be applied to the destitute able-bodied unemployed :— Householder and wife

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Children up to 16 years of age (each)
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All household income to be deducted.

This scale replaced the maximum scale recommended in Sep

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In practically every instance where a higher scale was being paid, parish councils agreed to accept this recommendation. The main effect of the reduction was that persons who were in receipt of unemployment benefit no longer received any supplementary grant from the parish council. For instance, a family consisting of a man, wife and four children, to whom unemployment benefit was payable at the rate of 31s. weekly, had in many of the larger parishes hitherto received an allowance of 5s. 6d. weekly from the parish council. Under the revised scale such a household ceased to be chargeable under the poor law. In spite of the reduction in or the cessation of the allowances paid to the able-bodied unemployed, which came into operation generally during the months of July, August and September, no appreciable reduction was observable in the total expenditure of parish

councils to such persons, and, in fact, the expenditure soon continued its upward trend.

The following table illustrates the increased burden which has been borne by certain of the more heavily hit parish councils in industrial areas during 1926 in respect of the relief of the unemployed :

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The following table shews the numbers of persons on the registers of the Employment Exchanges in Scotland, the numbers of destitute able-bodied unemployed persons (excluding dependants) in receipt of relief in some 100 industrial parishes, and the weekly cost of relief to such persons at the middle of December, 1925, compared with the numbers at the middle of November, 1926. The latter date is taken in preference to December, 1926, in view of the fact that the numbers dealt with by parish councils in December immediately after the termination of the dispute in the coal-mining industry were for the time being unduly inflated by applications from miners who had not been reabsorbed in the industry, and whose claims for unemployment benefit had not been granted.

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The following table shews the numbers of destitute ablebodied unemployed persons (excluding dependants) in receipt of

relief, and the weekly cost of relief to such persons in certain parishes at the same periods of the year.

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An examination of the figures in the foregoing paragraphs reveals the following facts in connection with the expenditure of parish councils on the relief of the able-bodied :

(a) Although in the first four months of the year there was a considerable reduction in the number of unemployed in Scotland, the improvement in the employment position was not reflected in the expenditure of parish councils, which, in general, tended to increase during that period.

(b) In spite of a general reduction in the scales of relief paid by parish councils to destitute able-bodied unemployed applicants, there was no appreciable reduction in their expenditure. The growth of the expenditure was temporarily checked as a result of the reduction in the scales, but in the latter part of the year the expenditure resumed its upward trend.

(c) The percentage increases in the numbers of unemployed persons relieved by parish councils and in the cost of the relief to such persons during the year were considerably higher than the percentage increase in the number of unemployed registered at the Employment Exchanges.

(d) The percentage increase in the number of unemployed persons relieved was generally smaller than the percentage increase in the cost of relief.

Enquiries made shew that parish councils themselves attribute these disproportionate increases to the numbers of persons who have been refused further extended benefit under the Unemployment Insurance Acts, and who, in many instances, become wholly chargeable to the poor rates. Representations have been made by many parish councils on these lines, and, while their contentions appear to be supported by the facts quoted above, it may be stated that the whole scheme of insurance against unemployment has been under review by a Committee appointed in 1925 under the chairmanship of Lord Blanesburgh, to which

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