XN000022-1976-02-24 — Page 2

TUESDAY, FEBRUARY 24, 1976

DROP IN PUBLIC ASSISTANCE APPLICATIONS

INDICATION OF ECONOMIC RECOVERY *****

THE NUMBER OF PEOPLE APPLYING FOR PUBLIC ASSISTANCE IN JANUARY 1976 WAS 1,569, WHICH COMPARES MOST FAVOURABLY WITH THE 3,313 WHO APPLIED IN THE SAME MONTH LAST YEAR.

COMMENTING ON THIS DROP, THE DEPUTY DIRECTOR OF SOCIAL WELFARE, MR. FREDERICK CLARK, SAID IT GAVE AN INDICATION THAT THE ECONOMY WAS PICKING UP AGAIN.

HE RECALLED THAT THE RECESSION IN 1974 RESULTED IN MONTHLY APPLICATIONS FOR PUBLIC ASSISTANCE RISING TO HIGHER LEVELS THAN WOULD NORMALLY BE EXPECTED. THIS WAS DUE TO THE FAMILIES OF UN- EMPLOYED BREADWINNERS AND THOSE FAMILIES WITH EARNINGS BELOW PUBLIC ASSISTANCE LEVELS LOOKING TO THE SCHEME FOR HELP. MR. CLARK SAID. +IN EFFECT. PUBLIC ASSISTANCE WAS PROVIDING SOME SUPPORT TO MEET UNEMPLOYMENT AND UNDER-EMPLOYMENT ALTHOUGH ITS MAIN PURPOSE IS TO GIVE A GUARANTEED INCOME TO PEOPLE WHO THROUGH AGE, ILLNESS, DISABILITY, OR THE NEED TO LOOK AFTER DEPENDENTS CANNOT UNDERTAKE WORK.+

HOWEVER, THE NUMBER OF CASES RECEIVING ASSISTANCE IN JANUARY THIS YEAR SHOWED AN ACTUAL DROP FROM THE PREVIOUS MONTH FOR THE FIRST TIME SINCE THE PUBLIC ASSISTANCE SCHEME CAME INTO OPERATION. FROM 55,620 CASES IN DECEMBER LAST YEAR IT DROPPED TO 55,464 IN JANUARY - A DECREASE OF 156 CASES.

MR. CLARK WAS ENCOURAGED BY THE NUMBERS OF THE UNEMPLOYED WHO WERE LEAVING THE CASE-LOAD. IN JANUARY, OVER 2,000 PUBLIC ASSISTANCE CASES WERE CLOSED AND THERE WAS LITTLE DOUBT THAT A LARGE PROPORTION OF THESE WERE AS A RESULT OF PEOPLE FINDING WORK OR RECEIVING INCREASED EARNINGS.

IN JANUARY 1975, 361 UNEMPLOYED BREADWINNERS (10.8 PER CENT OF THE APPLICATIONS RECEIVED IN THAT MONTH) TURNED TO PUBLIC ASSISTANCE TO SUPPORT THEIR FAMILIES, WHEREAS IN JANUARY THIS YEAR THE CORRESPONDING FIGURE WAS ONLY 73 (4.65 PER CENT OF THE APPLICATIONS).

+THE LOSS OF UNEMPLOYED AND LOW-EARNING CASES FROM THE CASELOAD IS A HEALTHY SIGN,+ MR. CLARK SAID, +IN THAT IT NOT ONLY MEANS THAT THOSE WHO ARE ANXIOUS TO WORK ARE FINDING EMPLOYMENT BUT ALSO BECAUSE IT ENABLES THE PUBLIC ASSISTANCE SCHEME TO CONCENTRATE ON LOOKING AFTER THE KIND OF PEOPLE IT HAS BEEN DESIGNED TO HELP. THAT IS THOSE WHO ARE IN THE MAIN ELDERLY AND SICK, OR WIDOWS WITH YOUNG CHILDREN.+

HE ADDED THAT SINCE THE PUBLIC ASSISTANCE SCHEME WAS EXPANDED IN 1972, THE CASELOAD HAD STEADILY INCREASED ASIDE FROM THE SURGE DURING THE RECESSION AND HE EXPECTED IT TO CONTINUE TO DO SO, PERHAPS MORE MODERATELY, UNTIL A POINT WAS REACHED WHERE ALL WHO WERE POTENTIALLY WITHIN THE SCOPE OF THE SCHEME HAD APPLIED FOR AND WERE DRAWING PUBLIC ASSISTANCE.

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