Insured workers against periods when they were out of work.
The scheme was open, at the start, to people (mainly men) who worked in trades like shipbuilding and engineering, where there was a great deal of seasonal unemployment.
Workers, employers and the Government each paid 2d a week.
Workers could, when unemployed, be paid 7s 6d a week for up to 15 weeks in any one year.
PROBLEMS
There is an argument that the policy was in fact encouraging poverty, as workers had a pay cut.
People who were already poor when this scheme was introduced were not helped by it.
The average working family could not survive on 7s 6d per week.
Also, unemployment pay ran out after 15 weeks.
Many industries were not covered at all, and this greatly contributed to the growth of poverty.
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