In December 1920, the Government decided financially to assist local authorities to enable them to put in hand works of public utility in order to relieve unemployment, and appointed the Unemployment Grants Committee, under Lord St. Davids as Chairman, to receive applications for grants, examine schemes and allocate funds. The Scheme of 1920 The Committee was instructed to observe, amongst others, these general principles: 1. Works were to be approved only in cases where the Ministry of Labour certified that serious unemployment, not otherwise provided for, existed in the area administered by the local authority undertaking the work. 2. The works were to be such as would be approved by the appropriate Government Department as suitable works of public utility. 3. The grant was not in any case to exceed 30 per cent. of the wages bill of additional men taken on for the work. 4. Preference in employment was to be given to unemployed ex-Service men. The powers of the Committee were subsequently extended as follows: (i) The grants could be increased from 30 per cent. to 60 per cent. of the wages bill. (ii) The Committee was authorized to assist, in addition to local authorities, (_a_) “public bodies”—being any board, commission, rating authority or trustees, or other body or persons who manage or undertake works in pursuance of statutory powers, not being a body trading for profit, and (_b_) through the local authority—boards of guardians, distress committees and voluntary agencies. A sum of £2,000,000 was placed at the Committee’s disposal for the financial year 1921-22, and a further sum of £630,000 for 1922-23. All this money has been allocated, though not spent (see Table p. 189), and has provided, or is providing, direct employment for approximately 110,000 men for varying periods. Nearly as many more are indirectly employed in the preparation of materials for use on the approved works in factories, workshops, quarries, etc. Almost 3,000 applications from local authorities have been considered in detail, of which over 2,000 have been granted. The total capital cost of the works so financially assisted is estimated at approximately £9,000,000. The Extended Scheme of 1921 In September 1921, the Government directed the Unemployment Grants Committee to undertake the administration of a further scheme for the relief of unemployment through local authorities. The new scheme provided for giving to local authorities, who put in hand works of public utility for the relief of unemployment, financial assistance on the following basis: (_a_) _In the case of revenue-producing works_: Grants equivalent to 50 per cent. of the interest for five years on loans raised for a period of not less than 10 years in order to meet expenditure oil approved schemes.