The Waterbury Democrat., 1931-11-12
DAILY NEWS LETTER
By HERBERT MOORE

United Press Stan Correspondent
 London.-More doleful than ever and $575,00O,000 in debt, Great Britain's unemployment insurance fund is meeting its severest test this winter, sustaining 2,750,0 jobless and their 5,500,000 depend ents.
 Launched in 1911, the fund has been extended and altered in 25 successive acts >to meet needs. Now almost universally known as the dole because of the. in- creasingly large share borne by the government itself, the fund has reached the end of it's borrowing from the exchequer, which ob- tained the money from the Post Office Savings Banks deposits. Henceforth the. inevitable deficits will be paid by grants from the exchequer out of current revenue. The. cost of sustaining the. un- employed this year is estimated at $G75,000, ,000, of which the govern ment must pay approximately two-thirds. The employers, work CTS and exchequer are each con- rtlbuting 20 cents weekly for each insured worker now working. In addition, the government is pay ing the entire cost of transitional benefit and. also is underwriting the deficits between contributions and benefits,
 ia' Drastic Changes
 Four drastic changes have been made in the scheme to balance the budget. These changes, consisting of 10 per cent reduction in the weekly benefits, a 25 per cent in- crease in weekly contributions, limitation of benefit to 2G weeks in benefit year and the removal of anomalies aroused widespread disapproyal and provoked disor- derly demonstrations.
 Labor party leaders argued that the dole reductions have reduced one-third of the unemployed to the status of pauperism. If food prices continue to rise as a result of the suspension of the gold standard. they. assert, the reduction will amount to 25 per cent in purchas- ing power, and imperil the stand- ard of living of the Jobless.
 The new rates of benefit range from $3.6c for adult men and $3.30 for women, to $1.38 and $1.14 for UOyb dnu Ell dSsCu lUy h%SpCC- lively. The rate for adult depen- pendents AS cents, the latter not affected by the economy cuts.
 The ministry of labor adrninis- ment exchanges and 748 branch employment offices.
 Any worker, who is involuntarily n n rlIn m nAnd hU having paid his insurance for 30 weeks during the past two years, is entitled to receive the regular insura nee benefit, based on the contributory scheme.
 In addition, there is the Transi- tional Benefit for those who have exhausted their insurance scheme benefit rights. This expense Is borne by the government and will cost more than $110.000,000 this year.
 Under the new regulations, all persons who have drawn benefit for 26 weeks, are thrown on to Transitional Benefit and must now prove their requirements by submitting to q needs test" con- ductcd by the public assistance committees.
 Under this new arrangement 1t is expected that the number draw ing Transitional Beneit this win ter will be approximately 1,000,- 900, or twice as many as before the new arrangement was effectu- ated.-
 There is still another form of relief. wh oh is called public as- sistance relief, CT poor law assi'- tance. It is administered by the local authorities empowered to raise local taxation to provide for their distressed unemployed, ewho cannot qualify for the insurance benefit or transitional benefit.