How far was welfare provision challenged between 1964 and 1979?

Learning objective – to be able to explain the decline in consensus on welfare provision between 1964 and 1979. I can describe the decline in consensus on welfare provision between 1964 and 1979. Grade D I can explain the decline in consensus on welfare provision between 1964 and 1979. Grade B I can explain and assess the decline in consensus on welfare provision between 1964 and 1979. Grade A

Why did Harold Wilson resist demands to change welfare provision? Harold Wilson was elected in 1964 in a campaign which committed the Labour Government to increase welfare spending. This would prove to be more challenging than anticipated because the Conservatives had hidden a £800 million budget deficit partly caused by its welfare commitments. Despite advice to cut welfare spending, Wilson refused and stuck to his commitments raising taxes to pay for this. This had the consequence of helping to trigger a series of economic crises as the welfare state expanded.

How did the National Insurance Act of 1970 extend welfare provision? Despite many in the Conservative Party thinking that current welfare spending was unsustainable, Edward Heath continued the commitment to maintaining the welfare state. The centrepiece of Heath’s welfare strategy was the National Insurance Act which provided a generous package of welfare benefits which included extending pension rights, extended care relief and increasing child benefit.

How did the New Right challenge the consensus on welfare provision? The emergence of the New Right in the 1970s began to challenge welfare provision as they felt it trapped people in a culture of dependency and diverted resources away from economic growth. The New Right’s maintained a three-pronged attack on welfare provision – Efficiency – Because welfare provision was not about making profit resources were wasted. It was wrong to raise taxes to pay for welfare provision as this money was not put to good use and limited taxpayer freedoms. Inflation – Welfare spending led to increased government borrowing. This would lead to too much money chasing too few goods which leads to rising prices. Dependency – Welfare spending leads to people being less able to do things themselves.

Why did the 1974 Elections help end consensus on welfare provision? Heath’s defeats in 1974 left him vulnerable and in February 1975 he was replaced as Leader of the Conservatives by Margaret Thatcher. Thatcher was sympathetic to the New Right thinking and did not support the level of welfare spending in place. As Leader of the Opposition, Thatcher attacked Wilson’s approach of raising taxes for the high-earners to pay for welfare provision.

What was the impact of the IMF loan on welfare provision? The IMF loan of 1976 demanded severe cuts in welfare provision. In total, the government made £2.5 billion in cuts to welfare spending – education and housing were hit the hardest in these cuts.

How were social attitudes changing towards welfare provision? The 1970s saw a generational shift in attitudes towards welfare provision – Many from the younger generation did not subscribe to the collectivist approach favouring policies for the individual as opposed to the community as a whole. Many felt those who benefited from welfare provision were ‘scroungers’. Large groups in the working class were ‘aspirational’ wanted to enjoy consumerism and a higher standard of living. Higher taxation was a barrier to this aspiration.

Task Below is a sample exam question with two judgements. Complete both judgements with evidence you have learned this lesson about welfare provision. Which one do you agree with the most? How far do you agree that the consensus on welfare provision had broken down by 1979? Criticism of extensive welfare was significant by 1979 …….. Despite criticisms from some quarters, such as the New Right, the consensus as to the need of welfare provision remained by 1979 ……..