The extent of and nature of social welfare provision, 1918-1939

Question 1

What was the 1834 Poor Law?

Answer 1

Ensured that the poorest were housed, clothed and fed in workhouses.

Question 2

What did the Liberal Government introduce in 1911?

Answer 2

Unemployment insurance

Question 3

What was accepted in the early 1900s?

Answer 3

It became more widely accepted that the state had a much bigger part in poor relief.

Question 4

When was the Unemployment Insurance Act introduced?

Answer 4

1920

Question 5

What did the Unemployment Insurance Act do?

Answer 5

• National insurance was extended from the 4 million workers covered in 1919 to 11.4 million in 1921.
• Benefits were increased to 75p for unemployed men and 60p for unemployed women.

Question 6

What did the Unemployment Insurance Act create?

Answer 6

The Act created a state funded dole, which was available to the unemployed without a means test.

Question 7

What were the reasons for a state funded dole?

Answer 7

• The need to support the unprecedented high levels of unemployment.
• Fears that extreme and widespread poverty might lead to revolution as it had done in Russia in 1917.
• The popular desire to support soldiers who had fought and risked their lives for Britain in the First World War.

Question 8

What happened to the state’s involvement as unemployment reduced?

Answer 8

As unemployment receded during the 1920s, there was no reduction in the state’s commitment to welfare provision.

Question 9

What did Phillip Snowden propose for the welfare budget?

Answer 9

A 10% cut in unemployment benefit.

Question 10

What was the impact of the controversy surrounding the Welfare budget?

Answer 10

• Arthur Henderson, the foreign secretary, led a cabinet revolt against the proposals which brought the government down.
• As a result, Labour leader Ramsay MacDonald was forced to form a National Government with the conservative government.

Question 11

What was the impact of the Great Depression on Britain’s economy?

Answer 11

• Britain’s exports declined by 50%, they were worth ⅓ of the country’s GNP
• Unemployment increased from 1 million in 1929, to 2.5 million in 1930
• Tax revenue declined but the number of people applying for support increased
• 1931 the economy shrank by 5%

Question 12

When was the National Economy Act?

Answer 12

1931

Question 13

What did the National Economy Act 1931 do?

Answer 13

• A means test for unemployment benefits to limit the overall benefits bill.
• Benefits could only be claimed for 6 months at a time. After this people needed to re-apply.
• Introduction of ‘transitional payments’ that were designed to support unemployed people after the first 6 months.

Question 14

What was the impact of the National Economy Act 1931 on working families?

Answer 14

• Low income families relied on all incomes to survive.
• In some families children of working age left the family home to ensure their families had enough money to feed everyone.
• Protests marches from the poorest parts of the country to London.

Question 15

When was The Unemployment Act?

Answer 15

1934

Question 16

What did the Unemployment Act 1934 do?

Answer 16

It built on the changes introduced in 1931 by continuing the distinction between short-term and long-term unemployment.

Question 17

What did the Unemployment Act 1934 introduce?

Answer 17

• Reversed the 10% cut in benefit for the short-term unemployed.
• After 6 months the long term unemployed could apply to the Unemployment Assistance Board.
• Long-term benefit payments were made a lower rate than those between 1931-1934.

Question 18

What was the result of the Unemployment Act 1934?

Answer 18

• Large public protests: 300,000 people demonstrated in South Wales.
• 1935, government suspended the cuts (reveals impact of popular protest).
• By the end of the 1930s all major political parties recognised the importance of the government in providing benefits.