Britain Transformed - The Welfare State Flashcards
Welfare Provision
Welfare is aid given in the forms of money or necessities to those in need, usually the old, th young, the sick and the poor
From 1908, the Liberal Government inaugurated a huge expansion of state provided welfare
These new support mechanisms we’re open to all who qualified
However, these reforms were far from universal
The situation in 1918 cannot be described as true welfare state and can, at best be called a ‘social service state’
The adoption of Keynesian economic and collectivism meant that the Second World War caused a comprehensive and sustained shift in welfare provision
However, even as the welfare state was being forged, there were concerns about the effect that this provision would have on moral fibre and independence
By 1979, with a large and expensive system, these concerns had developed into criticisms
Social Welfare Provision 1918-1939
There were many different aspects of welfare provision in this time period, however they centred around three main areas:
- Housing
- Unemployment
- Pensions
Housing Back Ground
Local and national governments had made efforts to improve housing since the mid-Victorian Era
There were concerns that slums promoted crime and disease
A lot of slum clearance has taken place before 1918
Improvements in Living Standards 1918-1919
A major improvement in urban living standards was achieved by the introduction of mains water and sewage to homes
- as late as 1899 only 1.4% of housed in Manchester had flushing toilets, compared to 98% in 1914
The government has promised returning soldiers a ‘home for heroes’ and the 1919 House and Town Planning Act aimed to empower local authorities to use central government funds to meet housing needs
Housing During the Recession
It was estimated that over 600,000 houses were needed for the housing programme, however only 213,000 were built before the recession hit
The housing shortage grew worse as a result, with an estimated shortfall of 822,000 houses in 1923
A consequence of this was that young married couples had to liven with their parents
Conservative and Labour Housing Acts
Conservative and Labour Housing Acts in 1923 and 1924 sought to use subsidies to encourage the construction of housing
These Acts, together with a further Labour Act in 1930, promoted house building
Between 1919 and 1940, 4 million homes were built
Public funds were used to relocate people living in overcrowded areas and most of the public sector houses were in larger cities, such as Manchester and Liverpool
Some projects, however, were not well thought out
A lack of jobs at the huge Becontree Estate nearly led to a disaster until the Ford factory was built nearby in 1931
The Issue of Unemployment
The most pressing problem for inter-war governments was unemployment
Unemployment never fell between 1 million (10%) and peaked at over 3 million in the early 1930s
Governments wanted to support the unemployment but also wanted to balance the books
A self-funding National Insurance Scheme was seen as the ideal solution and was implemented in 1911
However, the 3.5 million returning troops were not eligible
A difficult situation was developing
- it would take time to redesign the scheme but this would leave men who had fought in the First World War relying on the Poor Law
The only alternative would be to hand out dole money
This would be paid out of general taxation and people feared this would encourage reliance on the state
Solutions to Unemployment
The short term solution was to issue dole money but under a different name
- ‘the out of work donation’ (1918-1920)
This was issued to returning troops and the unemployed until they found work
Although it was meant to be temporary, it set two important precedents:
- the government has a duty to support the unemployed
- it provided more money for dependants
At the same time, a new Unemployment Insurance Act was developed to offer a longer-term solution
The idea was that increasing the number of workers covered by insurance would make the scheme self-funding
The Issues With Solutions to Unemployment
Unfortunately, the new Unemployment Insurance Act was passed in 1920, just as the affects of the post-war slump were talking hold
By 1921, the government was forced to make extended payments (in reality dole payments disguised as insurance)
The government did this as they feared a revolution
Over 2.4 million workers had taken part in strikes in 1919
However, attempts were made to limit the expense of this new system
- a ‘seeking work test’ was implemented in March 1921
By March 1930, 3 million claims had been rejected
The Unemployment Act and Final Solution
The Unemployment Act separated the treatment of ‘insurable’ from long term unemployment
Part I of the Act provided 26 weeks of benefit payments to the 14.5 million unemployed workers who paid into this scheme
Part II created an Unemployment Assistant Board to help those with no insurance benefits
By 1937, the UAB had helped 1 million people
The government had not been able to solve unemployment largely because they couldn’t stimulate economic growth
It was only with re-armament that unemployment was finally tackled
Pensions
State Pensions had been introduced by the 1908 Pensions Act
Although they were popular with the eligible over 70s, there were criticism that meant they were means tested and did not support the widows and children of the deceased
Minister for Health, Neville Chamberlain, addressed these concerns in 1925 with the Widows’, Orphans’ and Old Age Contributory Pensions Act
This provided an pension of 10 shillings per weeks for those aged 65-70 and provided for widows and children
It was funded by a compulsory contribution rather than taxation
This was initially unpopular with the Labour Party while it felt it penalised the poor
Self-employed workers were allowed to join the scheme in 1937
The lack of tinkering with pension provision compared to unemployment could suggest that Chamberlain did a good job with his act
However, it is more likely that this reflects the pressure placed on interwar governments by unemployment
Impact of WW2
Post WW2 saw the creation of the welfare state by Attlee’s government
We must look at how WW2 impacted society:
- Universalism
- Total War
- Experience of Other Classes
- State Involvement
- Labour Experience
- The Beveridge Report
Universalism
Total War
Experience of Other Classes
State Involvement
Labour Experience
The Beveridge Report
Labour Government WelfarePolicies
Apart from the method of funding welfare provision, Labour clearly implemented Beveridge’s key ideas of social insurance:
- The Family Allowances Act 1945 provided mothers with a non means tested payment of 5 shillings per week for each child aside from the first - this, however, was less than Beveridge recommended
- The National Insurance Act 1946 created a compulsory contribution system to help pay for o pensions and benefits for unemployment, sickness, funeral expenses and maternity
- The Industrial Accidents Acts 1948 gave additional cover for work place injuries
- The National Assistance Act 1948 established the National Assistance Board to provide help to the most vulnerable poor
Challenges to Welfare
Although there was consensus on welfare provision, criticism grew on the right wing over the cost and impact of benefits
One the left wing, there was resentment that not enough was being done to help the poorest
The cost of unemployment benefits rose from 0.6% of GNP to 8.8% in 1970
Some efforts to improve financing were made but level of spending rose both under Labour and Conservative governments