Labours Welfare Reforms

1
Labours Welfare Reforms

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

2
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
3
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

4
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

5
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

6
Social Security

• National Insurance Act, August, 1946 based on
  1944 white paper
• Insurance for all purposes from cradle to the
  grave
• 26 shillings for a single adult and 42 for a
  couple
• Sickness only claim after 165 contributions

7
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.
8
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

9
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

10
Activity

• What were the priorities of the new labour
  government?
• Outline and explain the main features of the
  legislation introduced to tackle want through
  Social Security
• Why did the new Social Security system, which
  aimed to provide enough assistance to meet
  peoples needs, in practice fail to address the
  problems of poverty and deprivation adequately?