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The Central Unemployed Body for London was set up under the Unemployed Workmen Act of 1905 (5 Edw. VII c.18) to replace the semi-official organisation known as the London Unemployed Fund established in October 1904 to alleviate some of the distress caused by unemployment. The Act provided for the establishment of a Distress Committee of the Council of every metropolitan borough, by order of the Local Government Board. The Act also provided for the foundation of a Central Body for the administrative county of London, consisting partly of members of and selected by the Distress Committees of the London County Council and partly of coopted members. At least one member of each committee and of the Central Body was to be a woman. The Act also provided for the setting up of Distress Committees in boroughs and urban districts outside London, but the Central Body with its federated structure was unique.
The Central Body derived its funds partly from voluntary subscriptions (mainly provided by the "Queens Unemployment Fund") and partly from rates; expenditure from the latter source being strictly circumscribed. The function of the Distress Committees was to inquire into the conditions of labour in their districts and to receive and sift applications for assistance. The Central Body was empowered to supervise and co-ordinate the work of the Distress Committees, to establish, take over or assist employment exchanges and to help applicants recommended by the Distress Committees by aiding their emigration or migration or by providing or contributing towards the provision of temporary work.
By 1909 the Central Body had 25 employment exchanges distributed throughout London, but these were transferred in 1910 to the Board of Trade under the Labour Exchanges Act 1909 (9 Edw.VII c.7). Work was provided in and around London mainly in parks and open spaces and emigrants were granted loans. Several temporary working colonies were established but the only permanent colony was at Hollesley Bay, Suffolk, which was established by the London Unemployed Fund with the help of Joseph Fells in February 1905 and was taken over by the Central Body. With the outbreak of the 1914 war the Central Body became largely redundant and after the war, owing to lack of funds and support from the government, its work was much reduced. The Unemployed Workmen Organization (London) (Revocation) Order of 1930, made by the Minister of Health, abolished both the Distress Committees and the Central Body and the property, debts and liabilities of the latter were transferred to the London County Council. The Hollesley Bay Colony was administered by the Council in much the same way as by the Central Body until its purchase by the Ministry of Labour in 1937.