How successfully did the Labour
Government of 1945-51 deal with the
social problems identified in the
Beveridge Report of 1942?
Success?
Failure?
Or a bit of both…
WANT
(poverty or need)
This could not be tackled in one easy step:
National Insurance Act (1946)
This is a contributory system of insurance (i.e. you, your employer and the
government contribute or ‘chip in’ towards it) to cover you against illness,
unemployment, maternity leave, widow’s pension, retirement pension and a death
grant to cover funeral costs. In other words, for all eventualities “from the cradle to
the grave”. This is basically an expansion of the Liberals National Insurance Act of
1911.
Good points: Provided cover for those who needed it most.
Weak points: People could only benefit from it after 156 contributions.
People were only covered from illness for a year and a half.
It was very costly to run due to the large number of officials needed to
operate it.
Weekly contributions took up about 5% of average earnings! Would
they have been better off keeping their money?
People joining the insurance scheme for the first time were not entitled
to full pension benefits for ten years.
The level of payment did not rise with the cost of living so did not
provide enough money for many. Even by “appointed day” on 5 July
1948 the levels set in 1946 were too low!
National Assistance Act (1948)
Provided benefits for those not covered by the National Insurance Act. National
Assistance Boards were set up to help citizens whose resources were insufficient to
meet their needs.
Good points: A “safety net” for those who missed out on National Insurance cover
because they were unemployed or hadn’t made enough contributions
yet.
One off payments could be given for essentials (bedding, clothing, etc)
as well as weekly payments
Weak points: Benefit levels were set too low.
Because people had to pay 156 contributions towards National
Insurance before receiving it the National Assistance was over
subscribed.
It was “means tested” so unpopular especially with the old even though
it was not as harsh a test as earlier means tests. This put some off
applying.
Family Allowances Act (1945)
Although started by the wartime government, this was passed to attack household
poverty to ensure wages could be spent on other areas while children were securely
looked after. A small amount was paid to all mothers of two or more children.
Good points: Wasn’t means tested.
The money was not paid to the fathers but to the mothers, who it was
felt were more likely to spend the money on what the children and
household needed
Industrial Injuries Act (1946)
This was a big improvement on previous legislation, under which it had been difficult
and expensive for a workman to prove that an injury or disability had been caused by
his job.
Good points: The act made insurance against industrial injury compulsory for all
employees.
Under the terms of the act, industrial injury benefits were to be paid at a
higher rate than for ordinary sickness.
Compensation was paid by the government, not individual employers,
and all workers were covered.
DISEASE
(lack of health care)
National Health Service Act 1946
For the first time every British citizen could receive free medical assistance.
Good points: medical, dental and optical services free of charge. Treatment by GPs
and in hospitals was free also.
These benefits were free at point of use, no patient being asked to pay
for any treatment.
Weak points: Many of the hospitals were old and out of date.
National Insurance only covered 9% of the running costs so it had to be
paid for through general taxation – the public are never happy at tax
increases.
By 1950 the idea of free treatment for all was undermined when
charges were introduced for spectacles and dental treatment.
Doctors could still run private surgeries. Money could still buy better
health which went against the ethos of the NHS.
SQUALOR
(poor housing)
Most of Britain still had slum areas and overcrowding was a serious problem made
worse by bomb damage during the war. To deal with the problem of squalor the
government concentrated on the building of homes for the working class after the
war. The government aimed at building 200,000 houses a year and many of these
were prefabricated houses which were assembled quickly onsite.
Housing Acts 1946/1949
Good points: Local authorities given financial assistance and access to building
materials (which were in low supply at the end of the War) to build 1.25
million new permanent homes
Weak points: No where near enough new homes were built and many people
remained in “prefab” homes, army barracks and even train carriages by
the end of 1951. Although Labour’s building programme compares
poorly to previous governments, people are not too critical of them over
this considering the level of house destruction during the War along
with the lack of building materials, increase in marriage and “baby
boom” after the War.
New Towns Act (1946)
Good points: 14 new towns were built across Britain, including Glenrothes and East
Kilbride in Scotland providing clean safe homes away from the old
overcrowded and war damaged cities.
Weak points: The towns were soulless and often left working class families cut off
from their previous areas due to a lack of transport.
Access to the countryside Act (1949)
Opened up public footpaths in rural areas.
Good point: Got city people into the fresh air away from their disease ridden city
slums.
IGNORANCE
(lack of education)
Education Act (Butler Act, 1944)
This was actually passed by the 1944 war time Coalition government and was
proposed by the Conservatives. But it was the Labour government that implemented
its measures.
Good points: Secondary education became compulsory until the age of 15.
Provided meals, milk and medical services at every school.
Weak points: The building of new schools concentrated on the primary sector to cope
with the baby boom; the secondary sector was largely neglected.
An examination at age 11 years (called the '11+') placed children in
certain types of school, according to their ability. Those who passed
this exam went to senior secondary schools and were expected to 'stay
on' after 15 years and possibly go to university and get jobs in
management. Children who failed the exam were not expected to stay
at school after 15 years and they were expected to get the unskilled
types of employment. This did nothing to create more equal
opportunities for working class children.
Employment and Training Act (1948)
Linked closely to Idleness.
Good points: To create a skilled work force
Funding for school leavers to train for a new skilled job
IDLENESS
(being unemployed)
After the war, there seemed to be work for everyone as Britain rebuilt itself. The
Labour Government succeeded in its commitment to maintain high levels of
employment after the war. By 1946, unemployment was reduced to 2.5 % (even
Beveridge had not though it possible to get it below 3%) and this was in spite of huge
post-war problems such as shortages of raw materials and massive war debts.
Employment and Training Act (1948)
Linked closely to Idleness.
Good points: To create a skilled work force
Funding for the unemployed and “demobbed” soldiers to train for a new
skilled job.
One way in which the government kept almost full employment was through
“nationalisation” - this means that the government took control of certain industries
such as iron, coal and steel manufacture. Careful with this one though!
Nationalisation can be done for many reasons at different times so is not technically
part of a normal Welfare State so you need to make it relevant. Emphasise that the
Labour government Nationalised on purpose to help create employment at this time.
Nationalisation
Good points:The government could use tax money to keep a “nationalised” business
going even if it was a failure so that they could keep people employed
and paying their tax and National Insurance contribution.
Weak points: Much of this success was built on the Marshall Plan. A giant loan of
£1263 million given by the Americans to stop Communism spreading
into Britain.
Nationalisation on this scale was very costly especially as many were
poorly operated. However, the economic arguments about
Nationalisation are not so important here. The key point is that it made
jobs when needed.
This is a good link to the BBC. It looks at who is responsible for the Welfare State and how successful it was:
http://www.bbc.co.uk/scotland/learning/bitesize/higher/history/labour/five_rev_print.shtml
Check out this guy as a good revision tool. But be careful… He does a great job describing what Labour did but
isn’t very critical in analysing the success or not of their action. There is a good link to the Liberal reforms and
other relevant parts of our course as well:
http://www.youtube.com/user/HistoryHelper