How Far Was There a Consensus Over the Provision of Welfare, 1951-1979?

Question 1

Winston Churchill (1951-55)

Attitude

Answer 1

Consenus PM, accepted need for welfare state, house building, nationalisation
Similar to Labour- ‘Butskellism’ (The Economist, 1954)

Question 2

Winston Churchill (1951-55)

Statistics

Answer 2

Unemployment fell to 300,000 by 1954
Aim to match comittment to housing- built 300,000 each year in 1951- 54 (Housing Minister Harold MacMillan)

Question 3

Anthony Eden (1955-57)

Attitude

Answer 3

One nation Tory
Believed it was the duty of gov to look after poorest to promote social harmony

Question 4

Anthony Eden (1955-57)

Statistics

Answer 4

Used gov money to reduce unemployment
July 1955 unemployment just 215,000

Question 5

Harold MacMillan (1957-63)

Attitude

Answer 5

Moderate Conservative + ‘one nation Tory’
Advocate for Keynesian economic theory + maintained mixed economy

Question 6

Harold MacMillan (1957-63)

Standard of Living

Answer 6

Comittment to build over 300,000 houses a year, rising living standards + low unemployment until 1959

Question 7

Harold MacMillan (1957-63)

Challenges

Answer 7

Chancellor Peter Thorneycroft resigned in 1959 + other key members of treasury in protest of high spending + welfare budget

Question 8

Harold MacMillan (1957-63)

Welfare State

Answer 8

Saw welfare state as a ‘moral duty’ to maintain- spending increased from 3 to 4% of GDP
1962- Hospital Plan, 90 new hospitals, refurbished 490
1964- 1.7 million homes built, 40% social housing

Question 9

Harold MacMillan (1957-63)

Unemployment + Spending

Answer 9

Unemployment rose to 878,000 and deficit budget grew- increased defence spending- £1.7 bn
Refused to devalue pound or cut welfare spending, borrowed £714 million from IMF

Question 10

Harold Wilson (1964-70)

Issues

Answer 10

By 1964, deficit budget of £800 million, rising inflation

Question 11

Harold Wilson (1964-70)

Attitude

Answer 11

Refused to abandon social reform or welfare state- committment to ensuring full employment, improving pensions, and building 500,000 homes a year

Question 12

Harold Wilson (1964-70)

Economic Response

Answer 12

1966, social welfare costs 5% of GNP
1967- Wilson devalued pound sterling from $2.80 to $2.40

Question 13

Edward Heath (1970-74)

Attitude

Answer 13

Selsdon Park meeting in 1970- plan for ‘new style of government’ + end to economic consensus

Question 14

Edward Heath (1970-74)

Cuts

Answer 14

Cut spending on council house funding, free school milk, and increased prescription charges.
Total £300 million cuts in first budget

Question 15

Edward Heath (1970-74)

Increased Spending

Answer 15

Family Income Support Act (1971)- child benefit for low-earning families
National Insurance Act (1975)- extended pension rights to extra 100,000 people, disability benefit, increased child allowances + rent subsidies

Question 16

Harold Wilson (1974-76) + James Callaghan (1976-79)

Attitudes

Answer 16

Chancellor Denis Healey argued policy of creating employment pushed prices up
But committment to welfare state

Question 17

Harold Wilson (1974-76) + James Callaghan (1976-79)

Welfare Measures

Answer 17

25% increase in pension rates, freeze on council house rents
Invalid Care Allowance Act (1975)
Universal Child Benefit Act (1975)
Paid for by high taxation

Question 18

Harold Wilson (1974-76) + James Callaghan (1976-79)

Economic Issues

Answer 18

1975- inflation reached 30%, value of pound falling
Forced to accept $4bn loan from IMF + to agree to £3bn in spending cuts (made from welfare budget)- branded as traitors by left wing of party