social welfare
creation of social welfare 1918-39
1918:
Gov assistance based on new poor law 1834 and pre-war liberal reforms
Workhouses (last one wasn’t closed until 1930)
—> 1911 unemployment act: introduced benefit scheme (employee taxed 3p and employer taxed 1p a week to put into a fund to tap into if unemployed), only covered heavy industry workers and was limited (7 shillings a week for 15 weeks, avg wage was 20 shillings a week)
Workers post war era signed up to ‘labour exchanges’ to claim unemployment but only 10% of workers enrolled into scheme due to eligibility problems
—> 1908 old age pensions act: 70+ get 5 shillings a week but there were eligibility problems with the scheme
Laissez faire policies were under pressure from charities like Barnados and Fabian society
1920 unemployment insurance act:
Increases number of suitable applicants from 4 million to 11 million
Weekly contribution from gov increased to 15 shillings for men and 12 for women
Not means tested (no questions asked about savings or family wealth)
Result of the social breakdown after ww1 (losing breadwinners), rising socialism (union power forced the introduction of unemployment benefits and better conditions for workers) and heavy industry production down by 33%
1931 national economy act:
Means tested (invasive, difficult conditions to meet)
Detested by the most deprived parts of the country like S. wales and tyneside
Disqualified part time workers from accessing benefits
Created a poverty trap which meant working would leave people worse off (working = making money = taken off benefits)
Regression from 1920, designed to find any reason to deny someone benefits
Claimable for 6 months and then had to be reapplied to
Children who were working age had to leave home otherwise parents would be illegible
1934 unemployment act:
Reversed 10% cut in benefits for short term employment
Means testing for long term employed
Payments lower than before, led to protests: 300,000 demonstrators in S. wales, gov introduced standstill regulations to suspend cut
By 1939, the depression was starting to end. Unemployment began to drop from 3 million in 1933 to 1.4 million in 1939
creation of welfare 1939-79
WW2:
Catalyst for nationwide intervention
Ministry of food and health created
Rationing improved health — restrictions on butter, meat, jam, eggs; emphasis on ‘dig for victory’ and ‘dr carrot’ campaign for vegetable consumption; short supply of alcohol and tobacco
First 3 days of evacuation, 1.5 million relocated to rural areas. Host families called for subsidies to care for evacuees (given 10 shillings a week for 1st child and 8 for the rest)
Beveridge report 1942 suggested universal benefits, it was supported by the public
Churchill spoke out against welfare spending, which was one of the defining factors in 1945 election
Family allowance act 1945:
1st child benefits
5 shillings a week for each child (excluding the eldest)
Payable to mother as well, improved women’s status because they were usually dependant on husband
National insurance act 1946:
25p weekly charge on worker’s wages
Made unemployment and sickness benefits available to women
Paid state pension to men over 65 and women over 60
1.30 a week for single person, 2.10 for married
Universality — abolished means testing and everyone was both covered and had to contribute
Poor and rich paid the same, meant that poor people had to pay larger % of their income than the rich
Industrial injuries act 1946:
Workers had the right to compensation for workplace injuries
Paid for by national insurance
1940s: 2,425 killed each year at work and ¼ of total deaths/injuries were mining related
National assistance act 1948:
Offered welfare for people who didn’t work (not covered by national insurance), e.g homeless, disabled, mothers and pensioners
Delegated responsibility of welfare to local authority, e.g finding accommodation or encouraging volunteers
Economic problems:
US debt (only fully paid in 2006), owed over $4 bil by 1945 with payments of $70 million a day
Stop go economics and full employment caused subsidies over $3 bil in total, 1945-79
Population living longer due to NHS, 64—>74 for women and 59—>69 for men, more people needing support strains the economy
Heath’s quiet revolution:
Pensions to 100,000 people who weren’t covered by 1948 act
Increased child allowances to mothers
Rent subsidies for low income families
Attendance allowance for people who needed long-term care
Welfare opposition
Keith joseph and Margaret thatcher plotted to end ‘comforts of benefit culture’
They said welfare state meant for navigating post-war Britain but now has led to less spending in failing industries
Believed gov shouldn’t take money from individuals or businesses to spend on others
Welfare was primary cause of inflation, believed people were given too much money which pushed
Lead to ‘idleness’ and dependency on welfare, said to cause social decline and that people claimed benefits to live in relative poverty with some level of satisfaction, crime and addiction rising as a result
Maggie becomes conservative leader in 1975.