The growth of unemployment and the government response.

Question 1

What was National Insurance Benefit?

Answer 1

The only financial help for the unemployed after WW1. It was set up to cover workers in a few industries, such as shipbuilding, where work was not steady. Workers and their employers paid into an Unemployment Fund. If work dried up, the fund paid benefit for up to 15 weeks.

Question 2

When was National Insurance Benefit set up?

Answer 2

In 1911.

Question 3

When was the Out-of-Work Donation Scheme set up?

Answer 3

In November 1918.

Question 4

What was the Out-of-Work Donation Scheme?

Answer 4

A scheme that paid a small amount of benefit. It was set up to help returning soldiers and war workers who could not find employment.

Question 5

How many people were unemployed in 1929?

Answer 5

1.5 million.

Question 6

How many people were unemployed in 1930?

Answer 6

2.4 million.

Question 7

Which industries hired workers during the Depression?

Answer 7

Some newer industries, such as car and electrical goods manufacturing did hire more workers – but were mainly based in the south and west of the country.

Question 8

In what 4 ways did the unemployed protest against unemployment?

Answer 8

1. They collected petitions asking for work.
2. They wrote to the government asking for work.
3. They wrote to the newspapers highlighting the problems.
4. They marched to London to protest to the government about conditions.

Question 9

Who set up Hunger Marches?

Answer 9

The National Unemployed Workers’ Movement, which was set up in 1921. They tried hard to make the point that the unemployed were not lazy, but wanted work more than benefits.

Question 10

In what 5 industries was unemployment highest in during the 1930s?

Answer 10

1. Coal.
2. Cotton.
3. Shipbuilding.
4. Iron.
5. Steel.

Question 11

Where was unemployment highest during the 1930s?

Answer 11

In the north and east of England and in Scotland and Wales.

Question 12

What percentage of miners were unemployed by 1932?

Answer 12

24.5%.

Question 13

What percentage of shipbuilders were unemployed by 1932?

Answer 13

62%.

Question 14

What happened when pits and shipyards closed?

Answer 14

The villages that served them became almost entirely unemployed.

Question 15

What percentage of factories built from 1932 to 1937 were in London or nearby?

Answer 15

80%.

Question 16

What year did Labour come into power?

Answer 16

1929.

Question 17

Who was prime minister when Labour came into power?

Answer 17

Ramsay MacDonald.

Question 18

What spending cuts did Labour make after they came into power in 1929?

Answer 18

1. The wages of government workers were cut by 10-15%.

2. The means test was introduced.

Question 19

What was the means test?

Answer 19

A test that allowed officials to visit benefit claimers’ houses, to examine their living conditions and to demand to know all savings and money earned by other family members.

Question 20

When was the means test introduced?

Answer 20

1931.

Question 21

What was the Special Areas Act?

Answer 21

£2 million aid was set aside for Scotland, Tyneside, Cumberland and South Wales.

Question 22

When was the Special Areas Act introduced?

Answer 22

1934.

Question 23

What was the Unemployment Insurance Act?

Answer 23

An act designed to help people when they were unemployed. Part One of the act was passed in 1934. It set up the administration and payment of unemployment benefit. This was the cause of serious protests in 1935 as officials would go into people’s homes and make them sell anything they did not need before they qualified for the benefit. This could mean ornaments, toys and even wedding ring. Part Two of the act caused even more anger as it cut in the payments. The situation became so serious that the government had to change its policy, restore the benefits back to their higher rate and bring in the changes gradually