How effective were the Labour reforms in creating a welfare state?

Background Throughout World War II, the country was run by a government formed from a coalition of Labour, Conservative and Liberal politicians. During the war, the government became much more involved in people's lives. As part of the war effort, the government organised the rationing of foodstuffs, clothing and fuel and gave extra milk and meals to expectant mothers and children. Most people welcomed this government intervention and wanted it to go further. The government was seen to be taking an active interest in providing for the welfare of the people.

William Beveridge Beveridge produced a report on the social welfare of Britain and, among other things, he stated that there were ‘Five Giants’ that had to be tackled relating to social welfare Want (Social Security) Disease Squalor (Poor housing) Ignorance (Education) Idleness (Employment)

Labour In 1945, contrary to expectations, Labour won a landslide victory at the General Election and with an overall majority in Parliament there was nothing to stop the new government from carrying out its manifesto programme. Quite simply, the British public believed that a Labour government would be more likely to pursue a vigorous programme of social reform. Labour's reforms were based on the Beveridge Report so it could not claim that it had created the ideas itself and it began tackling the five giants identified by Beveridge.

Effectiveness of the reforms In this essay, you are expected to discuss what Labour did to tackle these ‘five giants’ and make an evaluation about how successful they were in creating the welfare state.

WANT

National Insurance act National Insurance act passed in 1946 – Extension of 1911 Liberal Insurance act. The act created a compulsory contributory scheme for every worker. In return for weekly contributions from employees, employers and the state, workers were entitled to : Sickness and unemployment benefits Old age pensions Maternity grants Death grants

Analysis of Insurance Act Positive Compulsory – so meant every worker was covered regardless of what happened. Financial security for workers in times of sickness or unemployment. Provided everyone with a pension. Negative Contributions took up about 5% of people’s average earnings. Had to pay 156 contributions to be eligible for sick pay Pensions and benefits were still not enough to live on

National Assistance act Introduced in 1948 – this was designed to help those who were not in work or who had not paid enough contributions to qualify for full benefit. If people required extra help, they could apply for extra assistance. After sitting a means test they would receive a certain amount of money. This was designed as a safety net to ensure that nobody, working or not, fell into poverty.

Analysis of National Assistance act Positive Paired with National Insurance, this really did provide a safety net for people through which nobody should fall into serious poverty. Negative Means test – Many still felt there was stigma attached to this and did not apply because of the means test. Benefits still too low which left families still living below the subsistence level.

Positives of Social Security Comprehensive system – NI + NA made sure everyone was covered – Safety Net. Women + others not covered before are now covered. Reduces poverty in Britain.

Negatives of Social Security Benefits and pensions still aren’t enough to live on. Took up 5% of people’s salary. Inflation reduces effectiveness of benefits. Means test keeps stigma of ‘paupers’ – many don’t apply. 156 contributions needed before sick pay.

Want - Evaluation Labour can be criticised because of small things, such as needing 156 contributions to be eligible for benefits and benefits not being enough to live on. However, they created a very firm social security structure, which the National Assistance act aided greatly as it meant that benefits were available to all who needed them, regardless of circumstances. The biggest accomplishment of this system was that it was comprehensive.

Disease

National Health Service (NHS) Healthcare had to be paid for before the NHS (half the male workforce was entitled to some assistance but wives and families did not qualify). Families had to rely on help from friends, families and charity in times of sickness. The NHS offered free healthcare from general medical care, to dental care and glasses. Considered the greatest achievement of the Labour Government because of its continued existence and that it affects everyone’s lives. The NHS was based on 3 aims – Universal access – available to everyone Comprehensive – meeting all demands and treating all problems Free – service was to be free at the point of use (paid for through taxation and NI payments) Simply, it was system that would provide free healthcare to all citizens of the UK.

NHS The National Health Service faced a backlog of untreated problems, with doctors, dentists and opticians being inundated with patients queuing up for treatment that they had previously been unable to afford. Prescriptions rose from 7 million per month before the NHS to 13.5 million per month in September 1948.

Analysis of NHS Positive Gave everyone free healthcare regardless of class or wealth. Backlog of problems highlighted showed that there was clearly a need for such a system. Historians Sked and Cook describe the NHS ‘almost revolutionary social innovation since it improved the quality of life of most of the British people’

Analysis of NHS Negative Massive expense – By 1950 the NHS was costing £358 million per year. Because of this, Labour had to back track on the principle of a free service by introducing charges for spectacles and dental treatment, as well as prescription charges in 1952. Webster argues that the NHS failed to improve the general medical service available to the bulk of the population. Middle classes benefited to some extent but the lower classes continued to receive inferior service, especially after the introduction of prescription charges in 1952.

NHS - Evaluation It must be noted that the NHS did cost the Government massively and the introduction of prescription charges and dental charges went against the fundamental ideas of the NHS. However, to focus only on this and not on the impact it had on people’s lives is to ignore all the benefits the NHS provided. The NHS now meant that people could receive much needed medical care. This is shown by the increase in prescriptions and the huge backlog of problems highlighted by the NHS.

Ignorance (Education)

Education Education varied across the country – primary education had been established for some time, but many could not afford to send their children to secondary school. The aims of the Labour education reforms was to ensure there was equality of opportunity and that the working class could progress without the hindrance of fees.

Education Act 1944 The 1944 Education Act done a number a things: School was compulsory until 15 years of age. Free secondary education was provided for all Schools provided meals, milk and medical services. The ‘11+ exam’ was introduced to place children in certain types of school – junior and senior secondary schools (seen as the best)

Analysis of Education Act 1944 Positive Pupils would now stay until 15, ensuring they received some form of education. Meals were also provided, improving the health of children.

Analysis of Education Act 1944 Negative 11+ test went against the principle of equality that was at the heart of the Labour education reforms – those in senior secondary were seen to receive a better education. Middle classes benefited, but not many working class. MC could not go to school for free and would often be given places in senior schools. Even if they did get positions in high schools, many working class people were still pressured to work to bring a wage in for their family in their late teens.

SQUALOR (HOUSING)

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 decent homes for the working class after the war.

Housing the Homeless – Pre Fabs The first priority was to house the homeless. Aimed to build 200,000 houses per year. The government continued with the war-time policy of putting up ‘pre-fabricated’ homes. Prefabs were ready made factory built houses that would be put up quickly 157,000 prefabs were built – they were used for much longer than was originally planned.

New Towns Act, 1946 This act tried to solve the problem of overcrowding in cities by planning new communities. 14 new towns including Glenrothes and East Kilbride in Scotland were planned and built by 1951. These new towns were carefully planned out industrial areas would be built away from housing areas. Communities would have schools, shops and leisure facilities.

Town and Country Planning Act, 1947 Local authorities could buy land for building low cost homes – council houses. Local authorities received a 75% subsidy for building council houses. By 1951 700,000 houses had been built but there was still a shortage of 750,000 homes. Poor housing and homelessness were still serious problems.

Analysis of housing reforms Positive Prefabs provided temporary housing. 700,000 council houses built – decent quality for working class families. 12 New Towns designed and built – helped overcrowding. A great deal was achieved despite shortages of workers/materials.

Analysis of housing reforms Negative Many prefabs were used much longer than planned. Government did not create a separate Ministry of Housing – this would have made the planning and implementation of new houses and towns more efficient. 750,000 homes still needed – short of target. Homelessness and poor housing continued. Some say Bevan favoured quality over quantity – should have focused on building more houses.

Evaluation In housing, the Labour Government's record is far from praiseworthy, not comparing well with either pre-war levels or with the record of the Conservatives in the 1950s. Poor housing and homelessness were still serious problems at the end of the Labour administration in 1951. However, given the severe social and economic problems facing the government in 1945 after the end of WWII, paired with the short time scale they gave themselves, perhaps the government deserves a little more praise.

IDLENESS (Unemployment)

Full Employment The post war Labour government aimed for a policy of full employment – everyone who wanted a job could get one. Labour introduced a number of measures to achieve this.

Nationalisation When an industry becomes nationalised, it means the Government takes control of it. In theory, this means the Government takes over these industries and runs them for the benefit of the country instead of private owners. This meant that Labour could control and manage the economy better and maintain full employment.

Analysis Full employment was (nearly) met, however there is debate over whether or not this was down to Labour or to the circumstances surrounding the economy after the war. Nationalisation meant that the Government could subsidise industries that needed help and ensure that people remained in work. However, many claim the industries under the Govt’s control were actually inefficient and cost the taxpayer more money.

Negative However, there was a boom in private investment after the war and also a huge need to rebuild. Some argue that this soaked up all the workers, providing employment and Labour took credit for it. Women also tended to be out of work due to attitudes of the time – cannot claim to be a welfare state due to this.

Evaluation Labour were extremely successful in tackling unemployment. Along with the NHS, this is probably most successful performance by Labour. It is made more impressive due to the shortage of resources after the war (wider context). However, some say that any Government would have tackled unemployment as the need to rebuild meant that people were employed across Britain.