Theme 2 - Welfare: Provisions Flashcards

1
Q

What did the unemployment insurance act of 1920 do?

A
  • Extended social welfare and NI from 4 million in 1919 to 11.4 million in 1921
  • Benefits up to 75p for unemployed men, 60p for unemployed women (STILL LOW)
  • Created state funded doll available to unemployed without means test
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2
Q

How was the extension of state spending in the early 1920’s justified?

A
  • High unemployment rates
  • Fears of revolution
  • Desire to help WW1 veterans
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3
Q

What happened to the welfare budget in the early 1930’s and what was the impact of this?

A
  • Size of budget became controversial due to state of British economy
  • Chancellor Phillip Snowden proposed a 10% cut in unemployment benefits
  • Arthur Henderson, foreign secretary, led a cabinet revolt against proposals brining the gov down and causing Ramsey to form a National government with the conservatives
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4
Q

What did the National economy act of 1931 state? Impact?

A
  • Introduced means test for unemployment benefits in order to limit number of benefits handed out
  • Very negative impact due to;
  • short time workers being disqualified - many deprived areas such as south Wales had many workers working reduced hours. It made more sense to be unemployed than work reduced hours as you’d get benefits
  • Benefits only claimed up to 6 months
  • Transitional payments supported people after first 6 months but had to apply at Labour exchange to get them
  • Assessed all household income meaning only the poorest of the poor got any benefits. (STILLL LOWWWWW)
  • Many working children left home so parents could get benefits
  • Hugely increased poverty levels
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5
Q

What did the unemployment act of 1934 do?

A
  • Built on previous laws maintaining distinction between short and long term unemployment
  • Reversed 10% cut in benefits for short term unemployed (benefits for first 6 months)
  • After 6 months benefits claimed from the Unemployment assistance board
  • Cut in payments made to long term unemployed. Led to large public protests so in Jan 1935 the cuts were suspended
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6
Q

What was the evacuation and what we’re it’s effects?

A
  • 1939 1.5million children were moved out of the cities and into the countryside in order to protect them from bombings
  • Initially Evacuation authorities did not cater for needs of evacuees and assumed that families or private charities would but they didn’t meaning many were sent without space clothes, bedding or food
  • This later changed and children were provided with essentials
  • Highlighted inequalities in society
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7
Q

1) What was clothes rationing?

2) Effects of rationing?

A

1)
-Rationed from June 1941 with yearly allowance of 66 coupons (women’s dress cost about 11 coupons)
-Washing was hard as coal was rationed so little hot water
2)
-There was a thriving black market however many felt it equalised society. People accepted it and made the best with what they had
-Diets improved thanks to nutritional substitutes
-People didn’t like continued rationing after war however

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8
Q

What was the Beveridge report?

A
  • Wanted to state welfare to conquer 5 giants; Squalor, ignorance, want, idleness and disease
  • Written in 1942 as plan to reform Britain after war
  • Advocated a new relationship of co-op between state and individual
  • Argued for flat rate of contributions from all wage earners to pay for benefits and a flat rate of benefits received
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9
Q

Reactions to Beveridge report?

A
  • Vision was popular in all aspects of society and press
  • Used as propaganda during war to fight for better Britain
  • Recommendations were not implemented immeditaly
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10
Q

What was the 1945 family allowance act?

A
  • Gave child benefits
  • 5 shillings a week for each child (except eldest)
  • Lead to improvement of status of mother as the money went directly to them and therefore they had economic independence from husband
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11
Q

What was the 1946 National insurance act?

A
  • 25p weekly charge on the wages of all workers
  • Made unemployment and sickness benefits availible to all workers
  • Paid state pension to men over 65 and women over 60 (£1.30 for singles and £2.10 for couples)
  • Everyone regardless of wealth would be covered
  • abolished means test
  • Amount people paid into the scheme was the same so poor paid larger % than rich
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12
Q

What was the 1946 industrial injuries act?

A
  • Allowed workers to gain compensation for injuries in the workplace
  • 2425 died in 1940 with the most dangerous job being mining accounting for 1/4 of total deaths
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13
Q

What was the national assistance act?

A
  • Offered assistance to those not in work and not covered by the NIA (homeless, disabled and unmarried)
  • got rid of public assistance committees and replaced with National Assistance Board
  • Pushed power to local authorities
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14
Q

What was welfare consensus?

A
  • From 1939 broad agreements between parties over the role of the state and the provision of welfare
  • Harold Macmillian (1957-63) wanted to ensure there was no return to the poverty and deprivation of the 1930’s. Knew welfare cuts would be unpopular so didn’t do any
  • Believed that upper middle class had responsibilities to care for poor
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15
Q

What impact did welfare consensus have?

A
  • Britain still spent less on welfare throughout 50’s and 60’s than France and West Germany however cost of social welfare as % of GDP rose from 3% to 4% with pension taking up further 3%
  • Welfare spending did not end poverty as in 1965 720k kids still lived in poverty
  • Persistence of poverty lead to debate regarding effectiveness of welfare state
  • 1970 conservatives began to reconsider their commitment to high levels of welfare spending
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16
Q

What happened when Harold Wilson came into power and what were the consequences of this?

A
  • Promised to increase welfare spending but discovered that Britain had £800 million budget deficit hidden by previous gov
  • Deficit due to over spending on military and welfare system and too many imported goods coming in
  • Wilsons advisers recommended he cut welfare benefits in order to rescue economy but he refused meaning there were multiple times of economic crisis during his reign
  • Tax had to increase as spending did
  • social Welfare costs had risen to 5% of GDP in 1966
17
Q

What was the 1970 National insurance Act?

A
  • In 1970 Edward Heath led Conservative party to victory and created act in attempt to extended welfare further
  • gave pension rights to 100k people who had not been covered in 1948 act
  • Introduced allowance for people who needed care at home
  • Established invalidity benefit
  • increased child allowance which was given to mothers
  • Made rent subsidies available for low-income families
18
Q

What did right wing challengers not like about the increased spending in the welfare state?

A
  • All of below are points made by conservative Sir Keith Joseph
  • Economic inefficiency: gov would spend money less efficiently than private business. Business were run to make money so would spend money in most efficient ways, more money gov spent less efficient it would be
  • Inflation: Welfare spending required high levels of gov borrowing therefore increasing amount of money in economy without increasing number of goods
  • Dependency: Argued welfare state created a dependency culture. Encouraged people to live of state rather than get jobs. Promoted economic decline and poverty as people didn’t want to work and earn decent wages
19
Q

What happened to welfare after heaths defeat in 1974?

A
  • Thatcher became new leader of Conservative party

- Ended welfare consensus as she no longer believed in keeping high welfare spending

20
Q

What were some of Wilsons policies between 1974-79? How was he going to fund policies?

A
  • 25% rise in pension rates and freeze of council house rents in 1974 budget
  • Invalid care allowance of 1975
  • Universal child benefits 1975 for all children including the eldest
  • Sought to pay for policies by taxing high income earners
21
Q

What were the IMF cut and what were there impacts?

A
  • IMF insisted the gov cut spending in return for a loan of $4 billion
  • Gov made cuts of £2.5 billion with housing and education being cut but pensions remaining largely unaffected
22
Q

Opponents of welfare in the 1970’s?

A
  • Press became critical of excessive spending
  • Affluent working-class and middle-class people began to see welfare as a problem not a solution
  • People growing up during 60’s and 70’s were less inclined to indorse ways of thinking that had developed during depression and WW2
  • People opposed high taxes
23
Q

What was the state of welfare in 1918?

A
  • Poor laws and liberal reforms ruled
  • Some unemployed men were entitled to benefits introduced by the 1911 unemployment insurance act. Men received 7 shillings a week for up to 15 weeks in a year. (Low even compared to their standards). Women also covered. Only covered 10% of working male pop. Money collected from Labour exchanges
  • State role in welfare increased massively from 1918 onwards