Labour’s Welfare Reforms

Success and Failures of ReformsDid they meet the needs of the British people?

How did the Labour Gov’t tackle

WANT

1945-51 Period

Free of serious unemployment problems

However the government’s determination to keep Britain strong meant welfare was not the only call upon resources

Harry McShane and fellow members of the National Unemployed Workers' Movement

1945-51 Period

The Government kept a tight control on consumer spending and maintained rationing

Coal(1946), electricity(1947), gas (1949), railways (1948), the bank of England and the railways were nationalised

Family Allowance Act, 1945 Passed by the coalition gov’t in 1945. Came into operation in 1946 Was given to 2-3 million families with MORE

than 1 child RJ Cootes stated “ it was assumed the family

income would be sufficient to stand the cost of one child without hardship”

Cost the gov’t £59m in 1947 Payments came from taxation Helped large families financially Did not benefit one child families

Family Allowance Act, 1945

5 shillings (25p) a week for each child after the first

Helped employers keep wages down Helped prevent fall in birth rate Wife received benefit rather than

husband

Criticisms

Small allowance (Beveridge had proposed 8s) Only marginal impact on families Did not help parents with only one

child Motives of MPs had little to do with

welfare

Social Security

National Insurance (Industrial Injuries) Act, July 1946 was inherited from the coalition government provided benefits for all workers affected in the course of their work.

Accidents no longer a private matter

Social Security

4d was paid by workers, employers and state

Tribunals were set up so that workers could get a fair hearing

Payments for people permanently out of a job were more expensive than for unemployed

This Act provided the worker (who was injured at work) with :-

45shillings(£2.25) for himself 16 shillings(80p) for his wife 7 shillings and sixpence(37.5p) for his first

child This payment lasted for 6 months, if injury

continued then the worker was entitled to a pension

Social Security National Insurance Act,

August, 1946 based on 1944 white paper

Insurance for all purposes from ‘cradle to the grave

Covered sickness & unemployment benefit

Each week stamps were stuck on a card

Daily Mirror 5/07/1948 “The great day has arrived. You wanted the state to assume greater responsibility for individual citizens. You wanted Social Security. From today you have it”

Each man paid 4 shillings and eleven pence weekly

Benefits :- 26 shillings for a single adult and 42 for a

couple Sickness: only claim after 165

contributions Unemployment could be given for a

period of between 186 and 492 days

Scheme was fully operational by 1948

Scheme would only work if unemployment stayed below 8.5%

1948/9 unemployment was 1.2% scheme made a surplus of £95m

Social Security

National Assistance Act, 1948 was designed to help those not covered by other benefits schemes.

Means tested, in theory Act was to be used little, but rises in cost of living compared to benefit meant numbers increased

Janet and Arthur Irvine in their shop at 186 Kenmure Street in Pollokshields c 1945.

Criticisms

Government calculated benefit levels in 1946 to be fixed for the next 5 years

However by 1948 when scheme came into operation prices of goods had increased significantly thus reducing purchasing power of the benefits

Only 19% of average industrial wage

Criticisms

Many more people than anticipated e.g. elderly had to apply for Nat assistance, 66% by late 1950s

Although many were reluctant to apply for this due to means test and stigma attached

Marked improvement but still long way from solving poverty and deprivation

Homework Activity

Describe the benefits and weaknesses of the Family Allowance Act? (4)

Outline and explain the main features of the reforms introduced to tackle “Want” through Social Security? (4)

Explain how the National Insurance Act 1946 helped both the people of Britain as well as the Government? (4)