1. The Labour Reforms ( )

2. The Welfare State
A complete system of state help and benefits started in 1945 by the Labour government to do away with all the causes of poverty identified by the Beveridge Report.
A universal, comprehensive and adequate answer to Britain’s poverty.

4. How was it paid for?
National Insurance contributions from workers’ wages.
Nationalisation of essential industries.
Rationing continued on food, fuel and clothing.
A loan from the USA.
‘Marshall Aid’ from the USA. £2.4 billion given to Britain to provide a barrier around Communism from Russia.

5. 1946 National Insurance Act
People in work, except married women, paid 4s 11d a week in National Insurance contributions.
For the average worker, this amounted to just 5% of their income.

6. 1946 National Insurance Act
Rates of benefit:
Single person – 26s
Married couple – 42s
Remember, this one benefit would be adequate in preventing that person from living in poverty.

7. Nationalisation
Certain key industries were taken over by the government (i.e. not a company).
The Bank of England, telephone, civil aviation, along with industries such as coal, electricity, railways, gas, iron and steel were all nationalised.
It kept unemployment very low (saving money) but some industries (such as coal mining) were run badly and cost the government money. Nationalisation did not create jobs, but it made many more secure in the jobs they had in the nationalised industries.

8. 1946 Industrial Injuries Act
Payments for those temporarily hurt.
Long-term payments for anyone permanently unable to work.
This group also got a higher rate of benefit than someone just out of a job.

9. 1948 National Assistance Act
This was set up to help those who could not afford to make insurance contribution because they were not working, received low wages or were handicapped.
People had to undergo a ‘needs test’. This was better than the old ‘means test’ because it did not look at the earnings of your family.
Provided one-off or weekly benefits for things like bedding and clothing.

10. National Health Service Act 1948
Aneurin Bevan was Minister of Health and Housing and put into practice the National Health Service proposed by Beveridge.
Medical treatment and health care were to be paid for from national insurance.
It would be the right of all people to receive free treatment.

11. Opposition from Doctors
Two thirds of doctors did not want to join the NHS. They were worried that:
They would simply become government workers rather than having their own private practice – they would be ordered around.
They would lose money because patients would not pay them directly any more and they would just receive a fixed salary from the government.

13. Opposition from Doctors
Bevan delayed the NHS for two years whilst discussions took place.
Hospital doctors knew they needed money for new hospitals and equipment so they agreed.
The country was divided into Regional Boards (there were 5 in Scotland).
GPs were to be paid 15s for every patient on their list but also allowed to have private patients.
The NHS started in 1948 and 90% of doctors joined it.

14. Not enough money!
The NHS was needed more than expected. National Insurance only provided about 9% of the costs of the NHS (many more people than expected).
The government had to bring in charges for prescriptions, dental care and spectacles.
Bevan was so annoyed at this that he resigned from the government.

15. Source B is from a speech by the Health Minister in 1946.
This Bill will give us a free universal health service that will be paid for in full by National Insurance contributions. We do not intend to limit the amount of help given. There will be a service of local GPs, specialists, hospitals, eye treatment, dental treatment and hearing facilities.
How useful is Source B as evidence of the introduction of the National Health Service by the Labour Government?

16. C-O-P-C-R C = CONTEXT (background info)
O = ORIGIN (who wrote it and when)
P = PURPOSE (why was source written, who was it aimed at)
C = CONTENT (what does the source tell us)
R = RECALL (what does the source not tell us)

17. Context
The source refers to the National Health Service, which was introduced by the Labour Government in 1948.

18. Origin
It is a primary source, taken from a speech by the Health Minister, Aneurin Bevan, at the time of the Labour Government in It is a primary source, so it is useful because it tells us exactly what was said at the time, however, it does not have the benefit of hindsight.

19. Purpose
The speech was delivered to outline Labour’s plans for the National Health Service. It was aimed at the general public.

20. Content
The source reveals that the NHS would be universal (available for everyone) and would be completely free of charge. It also says that every health need would be met and that there would be no limit as to how much or how little treatment was needed.

21. Recall
The source does not however explain how there was fierce opposition from doctors. It also does not say that double the number of patients than expected and National Insurance contributions only covered 9% of the cost. The source does not explain that charges had to be brought in for dental treatment, opticians and prescriptions, and that Aneurin Bevan resigned in protest.

22. Finally…
The source is useful as evidence of the introduction of the National Health Service by the Labour Government to a certain extent.

23. Activity
Make a list of all the things in your house that you take for granted.

24. Electricity
Lighting
Central Heating
Clean running water
Toilet / Bath
Cooker
Dishwasher
Washing machine
Own bedroom
Carpets
Audio / Visual
Ventilation

26. Housing Problems
As the state of evacuees had shown, many people were living in terrible housing conditions, such as the slums of Glasgow.
Many homes had also been bombed during the war.
There were many homeless people.
It was estimated that Scotland alone needed 469,000 new homes.

27. Housing Reforms
Aneurin Bevan (Minister of Health) was given the responsibility for housing. Can you think why?
Firstly, Bevan restricted private house building so that building supplies and labour could be used for council housing.

28. Prefabricated Housing
‘Prefab’ houses were built off-site in sections that could be easily shipped and slotted together.
157,000 prefabricated houses were built in Britain.
Although they were only to be a temporary solution, many were inhabited for years and even decades, some even today!

31. 1946 New Towns Act
Twelve new towns would provide good quality housing in a good environment for people who had lived in the overcrowded cities.
Their local communities would have schools, shops and leisure facilities for children and adults.
Industry would be kept away from the houses.

32. New Towns in Scotland East Kilbride (1947) Glenrothes (1948)
Cumbernauld (1955)
Livingston (1962)
Irvine (1966)

33. 1947 Town & Country Planning Act
This act gave local authorities powers to buy land for building low cost houses, and to preserve historic buildings.
Local authorities could obtain a 75% subsidy for building council houses.
Planning permission from council now needed to develop land.
It also defined a green belt land that had to be kept rural.

34. 1949 Housing Act
Local authorities were allowed to buy homes for improvement or conversion.
75% of the costs were available from the government.
Private home-owners could get 50% home improvement grants.

35. How Successful?
By 1951, 700,000 new homes had been built, a great achievement considering the country was still recovering from the war.
There was still a huge shortage though.
5 million servicemen and women had returned home. Many married couples were forced to live with their parents.
Quantity over quality was the priority.

36. Activity
Your local council has 200 homes, but there are 3000 families who want them.
The Housing Committee decides which families are most in need.
Prepare a statement with your partner explaining why you should get a house.
The Committee will hear your statement and decide if you should get a house.