UNEMPLOYMENT INSURANCE IN THE WAR
AND AFTER
Tae outbreak of war in August 1914 found the scheme of
Unemployment Insurance; embodied in Part IT of the National
Insurance Act of 1911, just settling down into regular operation.
This scheme was the first serious attempt at compulsory
insurance against unemployment in any country in the world.
It had no precedent ; it had been introduced in face of many
doubts as to whether unemployment could ever be treated
successfully as an insurable risk; it was avowedly experi-
mental, with a low scale of benefits and a scope limited
to manual workers in a few specified trades—building and
construction of works, engineering, shipbuilding, construction
of vehicles, and saw-milling.
For each week of employment in these ‘insured trades’
a contribution of 24d. had to be paid by the workmen and an
equal amount by the employer ; these contributions were paid
by the employer’s purchasing a 5d. insurance stamp, affixing
it to an unemployment book carried by the workman, and
deducting the workman’s contribution from his wages. The
State added one-third of the joint contributions of the employers
and workmen, that is, 12d. a week or one-quarter of the total.
All contributions were paid into an Unemployment Fund
managed by the Board of Trade. The benefit provided was
a payment of 7s. a week for fifteen weeks in a year, limited
turther by the provisos that no one should get more than one
week’s benefit in respect of every five contributions paid by
him, and that no benefit should be paid for the first six days
of any period of unemployment. To obtain benefit the work-
man had to show that he was unemployed, able to work and
not able to obtain employment ; these conditions were applied
in practice by requiring him to claim benefit at a Labour
Exchange, to sign a register there daily during working hours,