Turning point

1
Turning point

• Campbell- Bannerman resigned due to ill health
• Asquith was his replacement
• Lloyd George and Churchill were in the cabinet
• They were committed to social reform

2
Pressure for reforms

• Royal Commission on the Aged 1895
• Most people thought it was a good idea
• New Zealand and Germany had introduced pensions
  for the elderly
• Losing seats to the Labour Party by 1908

Keir Hardie
3
Problems

• Problems with cost
• Asquith would only commit to a Pensions Bill when
  the budget was in surplus
• Decided on a non-contributory scheme financed
  from taxation

4
Problems

• Cost of pensions from 65 would be 17 million,
  Asquith decided on a less generous age of 70

5
Opposition

• Friendly society opposition as this would
  threaten their interests (better off working
  class and idea of self help)
• TUs and public opinion favoured pensions
  therefore friendly societies had to back down

6
The old Age Pensions Act,1908

• Came about through public pressure eg NCOL, WL
  Lever, loss of two by elections to Labour
• The Bill passed through with little opposition

7
The old Age Pensions Act,1908

• Entitled people over 70 with an annual income of
  between 21 and 31 pounds to between 1
  shilling(5p) and 5 shillings (25p)
• Gov. admitted that they were not a complete
  solution to poverty in old age, still short of
  Rowntrees calculations to remain above the
  poverty line

8
The old Age Pensions Act,1908

• Also exemptions
• Had to be British and resident for 20 years
• Had avoided imprisonment in previous 10 years
• Had not habitually avoided work

Drunken Women Fighting, London, c.1900
9
The old Age Pensions Act,1908

• Gov. miscalculated how many people would come
  forward
• Estimated 500,00 but 650,000 applied
• No birth certificate, difficult to prove age

10
The old Age Pensions Act,1908

• By 1914 the number of people coming forward
  increased to nearly 1 million
• The Act brought attention to the level of poverty
  amongst the old, these were people who had worked
  all their lives
• too proud to wear the badge of pauperism

11
The Budget of 1909

• 16 million needed to pay for pensions and ships
• Better off targeted with tax increases- super tax
  for those earning over 3,000
• Higher taxes on beer, tobacco etc
• Land tax

12
Opposition to budget

• Conservatives did not like proposals but were
  outnumbered in the HOC
• However they had a majority in the HOL
• HOL rejected budget
• An election was called over the Peoples budget
• Liberals with labour help won and the budget was
  passed
• 1911 parliament Act