▁un emp loyment ▁of ▁the ▁ 1 9 3 0 s , ▁contributions ▁to ▁the ▁ins urance ▁scheme ▁d ried ▁up , ▁resulting ▁in ▁a ▁fund ing ▁crisis . ▁ ▁In ▁August ▁ 1 9 3 1 , ▁the ▁ 1 9 1 1 ▁scheme ▁was ▁replaced ▁by ▁a ▁fully ▁government - fund ed ▁un emp loyment ▁benefit ▁system . ▁This ▁system , ▁for ▁the ▁first ▁time , ▁paid ▁out ▁according ▁to ▁need ▁rather ▁than ▁the ▁level ▁of ▁contributions . ▁This ▁un emp loyment ▁benefit ▁was ▁subject ▁to ▁a ▁strict ▁means ▁test , ▁and ▁anyone ▁applying ▁for ▁un emp loyment ▁pay ▁had ▁to ▁have ▁an ▁ins pection ▁by ▁a ▁government ▁official ▁to ▁make ▁sure ▁that ▁they ▁had ▁no ▁hidden ▁ear nings ▁or ▁sav ings , ▁und is closed ▁source ( s ) ▁of ▁income ▁or ▁other ▁means ▁of ▁support . ▁For ▁many ▁poor ▁people , ▁this ▁was ▁a ▁hum ili ating ▁experience ▁and ▁was ▁much ▁res ented . ▁ ▁S low ▁recovery ▁Following ▁Britain ' s ▁withdraw al ▁from ▁the ▁gold ▁standard ▁and ▁the ▁de valu ation ▁of ▁the ▁p ound , ▁interest ▁rates ▁were ▁reduced ▁from ▁ 6 % ▁to ▁ 2 %. ▁As ▁a ▁result , ▁British ▁exports ▁became ▁more ▁compet itive ▁on ▁world ▁mark ets ▁than ▁those ▁of ▁countries ▁that ▁remained ▁on ▁the ▁gold ▁standard . ▁This ▁led ▁to ▁a ▁mod est ▁economic ▁recovery , ▁and ▁a ▁fall ▁in ▁un emp loyment ▁from ▁ 1 9 3 3 ▁on wards . ▁Although ▁exports ▁were ▁still ▁a ▁fraction ▁of ▁their ▁pre