2. Creating a welfare state 1918-79
❖ Providing social welfare
❖Public health
❖ Education and widening opportunities
Providing social welfare
The extent, and nature of, social welfare provision, 1918-39
WELFARE PROVISION IN 1918
In 1918, government provision for the poor was based on the Victorian Poor Laws.
Victorian Poor Laws→ system of relief for the poor, made a clear distinction between
‘deserving’ (got food, clothing etc)and ‘undeserving’ (punished). Abolished as part of the 1948
National Assistance Act.
Workhouses→ originally designed for impoverished families, but then became homes for the
sick and hospitals.
The poor had to prove that they were morally upstanding, this was a humiliating process.
Workhouses were abolished in 1929.
Unemployment
This was a huge problem. Peaked over 3 million in the early 1930s.
● 1911 National Insurance Act, 7 shillings a week for up to 15 weeks in a year. Women
workers were also covered. Scheme covered only 10% of Britain’s working male
population. The war undermined the scheme because returning troops were not
eligible, either because they didn’t work in one of the specified industries.
● Instead, Out-of-work donation 1918-20 was issued to returning troops till they found
work. Even though this was temporary, it set out an important precedents: government
accepted a duty to the unemployed
The growth of welfare provision 1918-39
A new Act was developed for a longer-term solution. Unemployment Insurance Act 1920:
● National insurance was extended from 4 million workers to 11.4 million
● Benefits were increased to 75p for unemployed men and 60p for women. Still low
Rather than this scheme creating a self-funding scheme, it quickly drained the funds. This Act
created a state funded ‘dole’ (unemployment benefit paid for by the taxpayer) which was
available without a means test. (this extension was justified by the need to support the
unemployed and desire to support soldiers who fought).
,→ As unemployment reduced during 1920s, there was no reduction in the state’s commitment
to welfare provision.
WELFARE IN THE 1930s
Major changes in welfare for the unemployed were made through the 1929 Local Government
Act and 1934 Unemployment Act.
→ Set up the Public Assistance Committees (PACs). Replaced Poor Laws
→ In response to the financial crisis of 1931, PACs were given the power to means-test
claimants. By the end of 1931, 400,000 people were rejected because of the test
The National Economy Act 1931
Introduced a means test for unemployed benefits to limit the overall benefits bill. The means
test disqualified ‘short-time workers’. This created a poverty trap that if someone goes to work,
benefits stop.
● Benefits can only be claimed for 6 months, after they need to reapply
● Introduced transitional payments. (low-income families relied on the incomes of all the
adults in the family, now unemployed parents with working children would lose their
benefits if their children lived with them). So means test became the most unpopular
piece of legislation passed by the National Government.
The Unemployment Act 1934
Seperated the treatment of ‘insurable’ from long-term unemployment.
● Provided 26 weeks of benefit payments to those who paid into the scheme
● Created a National Unemployment Assistance Board (UAB) to help those with no
entitlement to insurance benefits
● Means testing of the long-term unemployed continued
→ The cut in long-term benefits led to large public protests.
By 1939, the worst of the depression passed and unemployment dropped, falling from 3 million
to under 1.4 million
→ In the 1930s, all of Britain’s political parties accepted that the state had a significant
role to play in unemployment benefits
Pensions
1925 Widows, Orphans and Old Age Contributory Pensions Act→ provided a pension of 10
shillings a week for those aged 65 to 70 and provided for widows, orphans and children.
Funded by compulsory contribution rather than taxation.
Housing
There was a concern that slums promoted crime and disease. Government promised soldiers ‘a
home fit for heroes’.
Labour Housing Act 1930—> promoted housebuilding. 4 million homes were built in total
between 1919-40
, The impact of the Second World War, the Labour Government and consensus
1939-64
Evacuation and rationing
During WW1, the government took control of people’s lives and children were evacuated to safe
areas in the countryside. This had the impact of bringing together sectors of society. Made
people feel more equal as they were all suffering hardship.
Evacuation
The evacuation authorities didn’t cater for the needs of the evacuees. He assumed the families
or private charities would provide. So the children were sent to the countryside without spare
clothes, bedding or food etc. Later evacuations were different. Government learnt from their
mistakes and ensured the children had the essentials.
Rationing
Government introduced rationing in the early 1940s. First items to be rationed were bacon,
butter and sugar as the people consumed this in big quantities. Items like meat, tea etc followed
the next year.
Impact of rationing
→ Nutritionists agree that Britain’s diet improved as a result of rationing because unhealthy
foods were more unavailable.
→ There was a black market and many items were available for a price which certain sections
of the populations could afford
→ Rationing equalised society
Clothes
Clothes were rationing with coupons and yearly allowances.
→ Washing was problematic as soap, coal and fuel etc were rationing
The impact of ‘total war’ on social welfare provision
WW2 led to a wide consensus that welfare provision was needed. There were many reasons
for this important shift in attitudes among politicians and the public:
● A ‘total war’ affected both the rich and the poor, with universal rationing and
communal bomb shelters. Gave a boost to universalists (concerned with everyone
rather than 1).
● War formed a coalition government. The Labour ministers led to co-operation
The Beveridge Report (December 1942)
❖ Providing social welfare
❖Public health
❖ Education and widening opportunities
Providing social welfare
The extent, and nature of, social welfare provision, 1918-39
WELFARE PROVISION IN 1918
In 1918, government provision for the poor was based on the Victorian Poor Laws.
Victorian Poor Laws→ system of relief for the poor, made a clear distinction between
‘deserving’ (got food, clothing etc)and ‘undeserving’ (punished). Abolished as part of the 1948
National Assistance Act.
Workhouses→ originally designed for impoverished families, but then became homes for the
sick and hospitals.
The poor had to prove that they were morally upstanding, this was a humiliating process.
Workhouses were abolished in 1929.
Unemployment
This was a huge problem. Peaked over 3 million in the early 1930s.
● 1911 National Insurance Act, 7 shillings a week for up to 15 weeks in a year. Women
workers were also covered. Scheme covered only 10% of Britain’s working male
population. The war undermined the scheme because returning troops were not
eligible, either because they didn’t work in one of the specified industries.
● Instead, Out-of-work donation 1918-20 was issued to returning troops till they found
work. Even though this was temporary, it set out an important precedents: government
accepted a duty to the unemployed
The growth of welfare provision 1918-39
A new Act was developed for a longer-term solution. Unemployment Insurance Act 1920:
● National insurance was extended from 4 million workers to 11.4 million
● Benefits were increased to 75p for unemployed men and 60p for women. Still low
Rather than this scheme creating a self-funding scheme, it quickly drained the funds. This Act
created a state funded ‘dole’ (unemployment benefit paid for by the taxpayer) which was
available without a means test. (this extension was justified by the need to support the
unemployed and desire to support soldiers who fought).
,→ As unemployment reduced during 1920s, there was no reduction in the state’s commitment
to welfare provision.
WELFARE IN THE 1930s
Major changes in welfare for the unemployed were made through the 1929 Local Government
Act and 1934 Unemployment Act.
→ Set up the Public Assistance Committees (PACs). Replaced Poor Laws
→ In response to the financial crisis of 1931, PACs were given the power to means-test
claimants. By the end of 1931, 400,000 people were rejected because of the test
The National Economy Act 1931
Introduced a means test for unemployed benefits to limit the overall benefits bill. The means
test disqualified ‘short-time workers’. This created a poverty trap that if someone goes to work,
benefits stop.
● Benefits can only be claimed for 6 months, after they need to reapply
● Introduced transitional payments. (low-income families relied on the incomes of all the
adults in the family, now unemployed parents with working children would lose their
benefits if their children lived with them). So means test became the most unpopular
piece of legislation passed by the National Government.
The Unemployment Act 1934
Seperated the treatment of ‘insurable’ from long-term unemployment.
● Provided 26 weeks of benefit payments to those who paid into the scheme
● Created a National Unemployment Assistance Board (UAB) to help those with no
entitlement to insurance benefits
● Means testing of the long-term unemployed continued
→ The cut in long-term benefits led to large public protests.
By 1939, the worst of the depression passed and unemployment dropped, falling from 3 million
to under 1.4 million
→ In the 1930s, all of Britain’s political parties accepted that the state had a significant
role to play in unemployment benefits
Pensions
1925 Widows, Orphans and Old Age Contributory Pensions Act→ provided a pension of 10
shillings a week for those aged 65 to 70 and provided for widows, orphans and children.
Funded by compulsory contribution rather than taxation.
Housing
There was a concern that slums promoted crime and disease. Government promised soldiers ‘a
home fit for heroes’.
Labour Housing Act 1930—> promoted housebuilding. 4 million homes were built in total
between 1919-40
, The impact of the Second World War, the Labour Government and consensus
1939-64
Evacuation and rationing
During WW1, the government took control of people’s lives and children were evacuated to safe
areas in the countryside. This had the impact of bringing together sectors of society. Made
people feel more equal as they were all suffering hardship.
Evacuation
The evacuation authorities didn’t cater for the needs of the evacuees. He assumed the families
or private charities would provide. So the children were sent to the countryside without spare
clothes, bedding or food etc. Later evacuations were different. Government learnt from their
mistakes and ensured the children had the essentials.
Rationing
Government introduced rationing in the early 1940s. First items to be rationed were bacon,
butter and sugar as the people consumed this in big quantities. Items like meat, tea etc followed
the next year.
Impact of rationing
→ Nutritionists agree that Britain’s diet improved as a result of rationing because unhealthy
foods were more unavailable.
→ There was a black market and many items were available for a price which certain sections
of the populations could afford
→ Rationing equalised society
Clothes
Clothes were rationing with coupons and yearly allowances.
→ Washing was problematic as soap, coal and fuel etc were rationing
The impact of ‘total war’ on social welfare provision
WW2 led to a wide consensus that welfare provision was needed. There were many reasons
for this important shift in attitudes among politicians and the public:
● A ‘total war’ affected both the rich and the poor, with universal rationing and
communal bomb shelters. Gave a boost to universalists (concerned with everyone
rather than 1).
● War formed a coalition government. The Labour ministers led to co-operation
The Beveridge Report (December 1942)
