The decision whether applicants for benefit satisfy the special conditions prescribed by the Act of March, 1921, rests with the Minister, but was given the power to refer questions relating to compliance with the requirements to the Local Employment Committees. This power has been freely exercised, and in practice the recommendations of the Committees in regard to cases submitted to them for consideration are usually accepted by the Minister.

The Act of March, 1921, increased the rates of benefit to 20s. a week for men and 16s. a week for women, with half-rates for boys and girls. Arrangements were also made for an increase in the rates of contributions as from the beginning of the next ensuing insurance year, viz. July 4, 1921, but these were again increased by a subsequent Act. Notwithstanding the special provision of benefit made by the Act of March, 1921, large numbers of persons who remained unemployed and had exhausted their rights to benefit in July 1921. It was, therefore, decided to introduce fresh legislation, making further provision for this class of case.

Temporary Act of July, 1921

The solvency of the Unemployment Fund had been impaired by the Act of March, 1921, and at the same time distress from unemployment was increasing. The Unemployment Insurance (No. 2) Act was, therefore, passed on July 1, 1921, which gave power to the Minister to extend the maximum period of benefit which might be drawn in each of the two special periods prescribed by the Act of March, 1921, by six weeks, making the maximum period of benefit twenty-two weeks, instead of sixteen. A great number of six-week extensions were granted, dating from February 22, 1922, which expired on April 5, 1922. At the same time the rates of benefit were temporarily reduced to 15s. a week for men and 12s. a week for women, with half-rates for boys and girls as long as the “deficiency period” lasts, i.e. (Sect. 16) until the Treasury certifies that the Unemployment Fund is solvent; and the waiting period of three days in the Act of 1920 was permanently raised to a week as under the original Act of 1911. The contributions payable from July 4, 1921, were increased under the Act of July, 1921, to the following amounts:

Employer’s
Share.		Employee’s
Share.		State
Contribution.
Men8d.7d.3¾d.
Women7d.6d.3¼d.
Boys4d.3½d.1⅞d.
Girls3½d.3d.1⅝d.

These rates of contributions were payable until July 1, 1923, or the expiration of the deficiency period, whichever is the later, after which the rates prescribed in the Act of 1920 were restored.

It has to be borne in mind that the provisions made by the Unemployment Insurance Acts of December, 1920, March, 1921, and July, 1921, are temporary only, and not part of the normal State scheme. The Act of March, 1921, authorizes the Treasury to advance moneys to the Unemployment Fund up to ten million pounds; this was increased to twenty million pounds by the Act of July, 1921. It has been necessary for the Treasury to make advances to enable the Fund to pay the benefits: the amount owing by the Fund to the Treasury on December 31, 1921, was approximately eight million pounds.

Temporary Provision for Dependents’ Act of November, 1921

As part of the temporary emergency programme of the Government to alleviate the abnormal unemployment existing in the autumn of 1921, the Unemployed Workers’ Dependents (Temporary Provision) Act, 1921, was passed on November 9, which made provision for the payment of allowances to the wives and dependent children of unemployed workers who were in receipt of benefit under the Unemployment Insurance Acts. This provision, as made by this Act, was for a period of six months only—to end on May 7, 1922. The Dependents Act provided that persons who were liable to be insured under the Unemployment Insurance Acts and their employers should, for a period of six months from November 7, 1921 (which period might be extended in the event of any deficiency occurring in the Fund) pay additional contributions for the purpose of creating a Fund separate and distinct from the Unemployment Fund, out of which allowances for dependents would be paid. To the contributions of employer and employed, the State made an addition.

Employer’s
Share.		 Employee’s
Share.		 State
Contribution.
Men 2d. 2d. 3d.
Women } 1d. 1d. 2d.
Boys
Girls