1 The Labour Government, Founding the Welfare State

2 1930s Government reforms: what are these?

3 Why was a welfare state needed? Explain each of the following: 1.Liberal Reforms ineffective 2.Long term decline of industry 3.Depression of 1930s 4.WWII

4 What is a welfare state? Explain : Opposite to ‘laissez-faire’ 1906 Liberal idea was for ‘level playing field’ at the start of life + a ‘safety net’ if things went very badly wrong. Welfare state = Government support from ‘cradle to the grave’

5 Who created the Welfare State? “The post 1945 welfare state was less a Socialist achievement than the ending of a process owing much to the Liberals and Conservatives.” Is this an acceptable interpretation of the facts?

6 Key Questions: How new were the Labour reforms of 1945? How successful were the Labour reforms of 1945?

7 Why did WWII help create a Welfare State? National Government under Churchill Winning = total war government ‘managed’ & ‘planned’ whole economy. Keynes – job in Treasury

8 Why did WWII help health? Needed healthy workers and soldiers: Ministry of Food = rationing. = healthy diets Emergency Milk & Meals scheme, 1941, for expectant mothers and children. free immunisation programme began. Unemployment Assistance Board = help elderly. Free Hospitals for war wounded Evacuation Glasgow Health Service begun

9 Why did WWII end Laissez-faire? People more used to planned economy Wanted to re-build war damage Planned also to re-build damaged society of 1930s = Beveridge report

10 The future? Coming on top of the 1914 war, the Second World War stretched the UK to its limits. Despite, or perhaps because of this, there grew up a determination which was national and cross-party in its unity. The British people were not going back to the hardships of the Thirties. They were going forward to something better.

11 Cont’d The Labour Party: “After the war, the national war effort must be turned to the building of a new Britain. While planning the war, the Government must plan for peace and a new society.”

12 Who was William Beveridge? Liberal party member A lawyer Director of Labour Exchanges. Influenced by Fabians. An authority on employment insurance master of University College, Oxford

13 What was the Beveridge Report? Beveridge asked to report on National Insurance But much wider… = “Five Giants” = problems for government to deal with As a Liberal he expected people to look after themselves 1 st, so this was a ‘safety net’ in case of problems

14 What were the Five Giants? Want (poverty) Disease Ignorance (illiteracy, innumeracy, etc.) Squalor (bad living conditions) Idleness (unemployment)

15 What were the Five Giants? X5 + translation

16 What did Beveridge propose? 1. One National Insurance scheme for all. 2. Payment by all into a national insurance fund through weekly contributions from wages. 3.Unemployment benefits for as long as needed. 4.Old age pensions, maternity pay, funerals, injury compensation 5.No means testing. All payments in and out at the same rate for everyone. 6.family allowances. 7.National Health Service

17 What did Beveridge propose? 1. One Payment by all through... 3.Unemployment benefits for more benefits 5.No... 6.family... 7.For sick =

18 Why was this unpopular with some? Explain the following points of view: 1.Liberal Laissez Faire adherents attacked this “…spendthrift, destroying every vestige of self-reliance and self-help.” 2.Businessmen. 3.Churchill = cost too much

19 Why was this unpopular with some? Explain the following points of view: 1.Liberal Laissez Faire adherents attacked because... 2.Businessmen because... 3.Churchill = because...

20 Most people were positive… Labour party public reaction= “ …for a week or two the war news tended to take a back seat.” Politicians and Trade Unionists wondered if they “…could afford to face the post-war period without [the Beveridge report].” Churchill’s Conservatives lost 1945 election

21 How new were these reforms? Answer : Not new: Liberal reforms, Growth in government ministries Piecemeal social reforms in the 1920s and 1930s –eg housing Wartime government e.g. the 1944 Education Act. Secondary education for all from 12 to 15. Eg. Family Allowances Act - 5sh / wk

22 How successful were the Labour reforms? #1 Insurance = WANT a National Insurance scheme which gave Old Age Pensions for men over 65, women over 60, unemployment benefit and sickness pay. Cost 5% of pay, took 10 yrs to be eligible Pensions not enough to live on Industrial Injuries Act –covered all workers, centrally funded National Assistance Board- paid for those without NI support- centrally funded & worked Q: explain why centrally (government funded) support was better than getting local councils or businesses to fund it?

23 How successful were the Labour reforms? #2 NHS = DISEASE Plan= Universal, free care “at point of need” Added 50% of working population to health cover Difficult to persuade Doctors to join: 90% against Bevan Minister Succeeded – 90% of Doctonrs joined when started July Cost huge: 1948 planned £134 million, by 1950 £356 million Introduced prescription charges & glasses costs 1951

24 How successful were the Labour reforms? #2 NHS = DISEASE Plan= Universal, free care = Added ___ of working population to health cover Difficult to persuade Doctors to join: Bevan Minister Succeeded – Cost huge: 1948 planned £___ million, by 1950 £ Introduced

25 How successful were the Labour reforms? #3 Housing = SQUALOR Many war homeless, eg 7/12000 Clydebank homes Aimed 200,000 houses a year, built 55,400 Huge shortages of supplies post war so - built prefabs. Government did set high standards for new council houses. Rent 1/3 of private landlords New Towns Act = replace slums with Glenrothes & Cumbernauld. 14 towns set up by Town and Country Planning Act.

26 How successful were the Labour reforms? #3 Housing = SQUALOR Many war homeless, eg 7/12000 _____homes Aimed 200,000 houses a year, built.... Huge shortages of... so - built.... Government did set.... Rent ____of private landlords New Towns Act =

27 How successful were the Labour reforms? #4 Child Welfare =IGNORANCE RA Butler (Cons) 1944 Education Act now in force. Original aims = ‘equality of opportunity” Grammar & Technical schools established. 11+ Entrance exam- mainly passed by middle class kids Intake to universities increased Children’s Act aided children in special care. Led to the appointment of Childrens’ Officers.

28 How successful were the Labour reforms? #4 Child Welfare =IGNORANCE RA Butler (Cons) __________Act now in force. Original aims = ‘... _______________schools established. 11+ Entrance exam- mainly passed by... Intake to universities Children’s Act aided.... Led to the appointment of Childrens’ Officers.

29 How successful were the Labour reforms? #5 Employment =IDLENESS Aimed for full employment Nationalised businesses Profits then would go to workers rather than bosses 8% unemployment expected, but went down sharply ? Labour, or just need to re-build after war

30 How successful were the Labour reforms? #5 Employment =IDLENESS Aimed for... Nationalised.... Profits then... ___% unemployment expected, but went.... ? Labour, or...

31 Were the reforms successful? NO Correlli Barnett = too expensive, needed to put industry first, not ‘nationally efficient’ Most help to sick & old & poor– so no economic benefit

32 Were the reforms successful? NO Socialist Utopia was not created. Poverty had been reduced but not eliminated. Nat. Health Service ‘…applied a bandage instead of …radical surgery…’. M/class better at working the system than the w/class. Government spending on Grammar schools rose - m/class benefited.

33 Were the reforms successful? NO Bevan made too many compromises with the BMA: private health care survived. The war gave birth to the Welfare State. It created a national consensus pro reform. Labour should have concentrated upon improving the industrial base before welfare. “Labour’s achievement was more one of modernising, improving and greatly extending an existing structure than of building an entirely new edifice.”

34 Were the reforms successful? YES Huge achievements in difficult times

35 Were the reforms successful? YES Completed Liberal Reforms The Five Giants were now under attack. The state now provided a safety net. Rowntree discovered poverty in York had fallen from 36% in 1902 to 2% in Did this despite industrial decline & despite wartime loss of national wealth and markets.

36 Were the reforms successful? YES Beveridge Report = suggestions only Labour actually created the laws. Conservatives would probably not have done the same. But left alone what Labour had created.