Labour

1
Labours Welfare Reforms

• Success and Failures of Reforms
• Did they meet the needs of the British people?

2
How did the Labour Govt tackle WANT
3
1945-51 Period

• Free of serious unemployment problems
• However the governments 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
4
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

5

• Family Allowance Act, 1945
• Passed by the coalition govt 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 govt 59m in 1947
• Payments came from taxation
• Helped large families financially
• Did not benefit one child families

6
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

7
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

8
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

9
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

10

• 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

11
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

12

• 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

13

• 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

14
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.
15
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

16
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

17
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)