Creation of the Welfare State - Labour 1945-51

Wordle

Labour Government (1945-51) The Creation of the Welfare State

What You Will Need to Know for the essays The reasons for the introduction of the social reforms.

The problems faced in introducing the reforms.

The details of the reforms The political and historical significances of the reforms.

History of the Labour Party

The Labour Party was originally a political pressure group that wanted the Government to pass reforms which would benefit everybody – not just the upper class It was first led by Kerr Hardie In the General Election of 1902, Labour gained 5 seats In 3 years this increased to 29 seats

What does this tell us about the Labour Party?

Early Leaders of the Labour Party

Three terms as Labour Leader, 1908 – 10, 1914 – 17, 1931 - 32

Ramsay Macdonald Arthur Henderson

Keir Hardie

First ever Labour Prime Minister, 1924

Founded the Independent Labour Party (ILP) - 1893

Election Success Support for Labour continued to grow throughout the 20th Century – this was seen in the election results Labour’s first major election success came in 1924 when Ramsay MacDonald became their first Prime Minister.

The Liberal Party had effectively died at this point, leaving Labour as the main opposition to the Conservatives

During World War II Labour was part of the wartime coalition – but as a junior partner.

Tackling Poverty

Attitudes Towards Poverty Before WW2 attitudes towards poverty, by many in the government, were not too sympathetic.

So despite the Liberal Reforms, not much had changed

But WW2 did much to change the attitudes towards poverty and social class.

The Coalition Government During the war, the needs of many in the country became greater as conditions got worse – rationing, health care etc.

During these times people were much more likely to accept much greater government intervention or help than they had done before.

They therefore accepted the government’s policy of “war socialism” A more socialist society was one of Labour’s main aims – ie. More support for the working class.

Attitudes Towards Poverty Rationing had been forced upon all classes within society – hardships and sacrifices had been endured everyone. After the war there was a common consensus that society should be fairer.

Attitudes Towards Poverty The arrival of evacuated children opened the eyes of many to the terrible health and poverty issues in many of the towns and cities

For many middle-class people, WWII was the first time they had seen poverty at first hand. In this way, evacuation was one factor which led people to demand a Welfare State after the war.

‘The children went round the house urinating on the walls. Although we had two toilets they never used them. Although we told the children and their mother off about this filthy habit they took no notice and our house stank to high heaven.’ from an interview in 1988 with the mother of a host family

The Coalition Government Provision of school meals and milk was extended.

State nurseries were established.

Immunisation was made free (1941).

Old age pensions were improved.

1944 – education act raised school leaving age (to 15).

1945 - Family Allowance act – child benefit.

The Coalition Government While several key Labour ministers were members of the wartime government it must also be said that both Conservatives and Liberals members also contributed significantly to the welfare state before 1945

The Beveridge Report But, it was the outcomes of the Beveridge Report (1942) that did influence Labour’s Social Welfare reforms after 1945.

The Beveridge Report Sir William Beveridge.

Wanted to extend the existing system of welfare measures and make it: “Comprehensive, Compulsory and Universal�.

The findings of his report into the poverty and health were so shocking that they became an unlikely best seller.

The Beveridge Report Beveridge identified what he called the “Five Giant� problems in British Society

Giant

Meaning

Want

Deprivation

Idleness

Unemployment

Disease

Ill health

Ignorance

Lack of Education

Squalor

Bad housing

Reactions to Beveridge Report

The Chancellor of the Exchequer, Sir Kingsley Wood, believed the Report to be:

"ambitious and involving an impracticable financial commitment"

Reactions to Beveridge Report

"a momentous document which should and must exercise an immediate influence on the direction of social change in Britain".

Reactions to Beveridge Report

“A big and fine thing”

The British Institute for public Opinion reported that 95% of the public had heard of the report and that there was “great interest in it” – clearly showing the desire of members if the public from all walks of life to change social welfare.

Tackling the Giants

General Election of 1945 During the war, Churchill had led the country alongside a coalition made up of Conservatives, Liberal and Labour ministers As soon as the war had ended, Britain held an election For the first time, soldiers were able to cast their vote from overseas

All the political commentators at the time believed that Churchill would win the election with ease

Churchill himself was so confident that he went on a tour of the armed forces whilst the British Public were casting their votes

Labour gained a clear majority of the votes by promising that Labour would help Britain ‘win the peace’

What did Labour mean by ‘winning the peace’?

Victory in War must be followed by a Prosperous Peace The gallant men and women in the Fighting Services, in the Merchant Navy, Home Guard and Civil Defence, in the factories and in the bombed areas - they deserve and must be assured a happier future than faced so many of them after the last war. Labour regards their welfare as a sacred trust.

1945 Labour Party Election Manifesto

The people made tremendous efforts to win the last war also. But when they had won it they lacked a lively interest in the social and economic problems of peace, and accepted the election promises of the leaders of the anti-Labour parties at their face value. So the "hard-faced men who had done well out of the war" were able to get the kind of peace that suited themselves.

The people lost that peace. And when we say "peace" we mean not only the Treaty, but the social and economic policy which followed the fighting.

Clement Atlee – Labour leader from 1935 to 1955. When Labour won the General Election in 1945 he became Prime Minister, a post that he held until 1951

How do you go about tackling a Giant?

The Beveridge Report In his report, Beveridge advised that the Government should tackle only one of the giants – want Not only did he suggest which giant to tackle but he provided advice on how to tackle the giant

But… It had been 3 years had passed since the Beveridge Report had been published This had allowed the findings of the report to influence and change Government thinking By the time the General Election in 1945 came around, Labour had decided that it was going to disregard Beveridge’s advice and do one better They were going to tackle all ‘Five Giants’

For the first time in Britain, Social Welfare would attempt to resolve the causes and well as the consequences of the giants Labour truly wished to create a society that cared for the population from ‘the cradle to the grave’

Tackling Want

Poverty or Deprivation

James Griffiths Minister for National Insurance

Family Allowance Act (1945)

Although it actually came into operation from August 6, 1946

The act allowed the government to give benefits of 5s per week for every child in your family (other than the eldest).

Family allowance could be collected while your child was of school age, or up to the age of 18 if they were in an apprenticeship or in full time education

The National Insurance Act (1946) Why did the Labour Party introduce a National Insurance Act?

What did the National Insurance Act (1911) do?

How did it fail?

Under the Liberal Government, National Insurance Contributions were not compulsory

Labour’s National Insurance Act This act covered all of the points listed below Workers Injuries.

Old Age. Unemployment.

How many of these points were original to the Labour Government of 1945?

National Insurance The idea behind all national insurance schemes is “part-payment�.

For example, contributions were made by you (the employee), your employer, and the Government.

Under this scheme, unlike those of the liberals, payments were compulsory.

Any downsides?

The Industrial Injuries Act (July 1946) This Act established compulsory national insurance (based upon Beveridge’s recommendations).

It provided care and financial support for those off work due to sickness or injury.

However, benefits could only be claimed after 156 contributions. In the case of unemployment, benefit could only be claimed for a period of between 180 and 492 days

Old Age Pensions Remember – the Liberals tried to tackle this problem in 1908!

Labour only built upon the Liberal Government's original reforms.

They reduced the age and increased the benefits that pensioners could claim

Pensions were paid at a rate of 26d (old pence) per week for single people and 42d per week for a married couple.

Can collect at 60 Can collect at 65

However, the old age pensions scheme was still criticised by some at the time for not going far enough (e.g. not enough money given) to help the old stay above the poverty line.

In fact, the government introduced the National Assistance Act (1948) to provide payments to those still in poverty or those not covered in the previous act.

In 1949, it was estimated that more than 50% of payments under this scheme were made to the elderly, this had risen to 68% in the late 1950s

The National Assistance Act (1948) This was a “catch all” act that was designed to offer further support to those who were not covered under the previous acts.

It provided the government with a “safety net”.

Things such as maternity, funeral costs and death grants could be included.

Other Criticisms The Government calculated and decided upon benefit levels in 1946. These were fixed for 5 years after which they were to be reassessed.

However, after the war prices quickly rose as rationing ended and it is estimated that by 1948 welfare benefits were only 19% average industrial wage – so well below subsistence level.

Costs of Tackling the Giant Want

The report estimates the cost of this social security scheme would amount to ÂŁ697m in 1945, compared to ÂŁ432m for the existing system.

Want Conclusion Compared to the social security provisions in the past, the system put in place in the 1940s was a marked improvement.

But looking back it is equally clear that there was still a long way to go before the problems of poverty were adequately addressed.

Tackling Disease

It has been argued that the most significant achievement of Labour Government was National Health Service Act (1946).

How do we benefit from the NHS?

Aneurin Bevan – Minister for Health “…a universal health service available to the whole population and without limitation.”

The NHS Act Although passed in 1946 – was not due to come into operation until July 1948.

Initially there was not much support for the act from the Conservatives and the medical profession.

In a survey of British Medical Association members‌ 4,734 voted for the NHS 40,814 voted against the NHS

Why do you think this was?

In order to win over the Tories and the medical profession, Bevan had to compromise Doctors were allowed to retain some private beds and keep their private patients

Doctors’ salaries also changed – they would now be paid according to how many patients they saw

By July 1948, 90% of the BMA supported the NHS Bill

How did the public respond to the NHS Act?

People rushed to get their free treatments and many spent days in Hospitals simply going between departments to get all of their problems fixed.

This really highlighted the incredible backlog of untreated problems that the NHS faced

Costs of Tackling the Giant Disease

The number of prescriptions rose from 7 million per month before the NHS to 13.5million per month by Sept 1948.

In the first year 5 million pairs of glass were given out and 8 million dental patients treated.

This huge expense came as a shock to the government!

National Insurance contributions only paid for 9% of NHS funding by 1949.

By 1950, the NHS was costing ÂŁ358million per year and the Labour party were forced to backtrack on the principle of a free service.

They introduced charges for spectacles and dental treatments – these were much less than would have been paid before the NHS. As a result of the introduction of charges, Bevan resigned from the Labour Party

Disease Conclusion The huge costs of the NHS had taken the government by surprise and they were forced to postpone plans for several new hospitals.

New charges also had to be introduced to cover some of the costs.

However, the NHS was a remarkable reform.

Historian RC Birch commented that it was “the single greatest achievement in the story of the welfare state.�

Tackling Ignorance

Labour inherited the Education Act (1944) from the wartime coalition government and were charged with carrying it out.

1944 Education Act School leaving age raised to 15 by 1947 and to 16 whenever practical to do so (1973) School system was to have 3 stages:   

Nursery Schools (attendance voluntary).

Primary Schools (5 – 11 year olds - compulsory).

Secondary School (11 and over).

Divided into Grammar (senior secondary in Scotland), Secondary Modern (junior secondary) and Technical schools

School meals and milk to be compulsory (introduced by Liberals – 1906 - but not made compulsory then).

School medical service developed.

20% of existing schools had been damaged or destroyed during the war.

It was up to the Labour Party to rebuild them

Baby Boom!

During the years 1942 – 1947 there was a “baby boom”.

Soon these children would be of school age and put a massive strain on education resources and especially school buildings.

By 1950, 1176 new schools had been built or were under construction. 928 of these were primary schools.

Did Labour create a fairer education system?

11 Plus

Access to Grammar schools was restricted.

But, not by wealth as it had been in the past when only those who could afford to pay got the best education.

Instead, children sat the 11+ intelligence test to determine which of the 3 tiers of the school system they went to after Primary School.

This exam was still sat in Northern Ireland until 2008

In theory, this was a way to ensure fair access to the top educational opportunities based upon intelligence and not social class.

What it turned into was a socially divisive system.

Grammar schools attracted top funding and the best teachers and used these to best prepare their pupils for exams that would lead them to universities.

By contrast, secondary moderns were inferior and offered children less opportunities. Grammar school places and university degree programmes were still dominated by upper classes. Many left secondary moderns with no paper qualifications.

Why did Labour not Provide Better Schools for the Working Class?

Some historians put it down to the educational background of the Labour leaders

Both Clement Atlee (Prime Minister) and Hugh Dalton (Chancellor of Exchequer) were privately educated – historians believe that this meant that they had little understanding of the state education system

Both Ernest Bevin (Foreign Secretary) and George Tomlinson (Education Minister, after 1947) had little formal education themselves. Tomlinson left school at the age of 12!

Ignorance Conclusion The building of schools and the implementation of the 1944 Education Act must be acknowledged.

But, compared to the equality of opportunity and provision being carried out in other areas of social reform, it must be said that Labour did little to improve the educational welfare of the working class.

Tackling Squalor

Poor Housing

Once again, it fell to Bevan to tackle this giant During the 1930s, many people lived in substandard housing Most of which was overcrowded

However, as a result of the German Blitz, many in Britain required new accommodation

A house in Aberdeen destroyed by the Blitz (1943)

This was possibly the most pressing issue which Labour faced when it came to power Especially when Britain’s troops were returning home!

Bevan gave responsibility to local authorities to build 200,000 houses a year.

Four out of every five were to be council houses – rented to poor families at a subsidised rate.

Bevan insisted on houses being good quality and having basic amenities.

Labour still criticised for not doing enough.

Issues which Labour faced:

Shortage of construction workers and building materials hampered efforts.

Pre-fabricated houses were ordered 157,000 ‘pre-fabs’ were built using cheap imported timber.

Although meant to be temporary – many remained in use for decades.

Attempts to Solve the Problem Town and Country Planning Act (1947) set a target of building 300,000 new houses a year. It also defined green belt land that had to be kept rural.

New Towns Act 1946 Created modern, well planned towns.

Provision made for 14 ‘new towns’ including East Kilbride, Glenrothes and Cumbernauld in Scotland.

Some new towns gained reputation as being soul-less concrete jungles lacking community spirit.

Squalor Conclusion By 1949 about 600,000 new houses had been built in England and Wales. However, the 1951 census showed that there were still 750,000 fewer houses than households in Britain.

Given the very poor state of the country’s economy after the war many historians are not too harsh when judging Labour’s housing polices.

Voters in the 1951 General Elections, however, were not so lenient and voted Labour out of power.

Tackling Idleness

Labour Government did not want a return to the mass unemployment of the ‘30s 1946: the Government took control of the Bank of England and nationalised Coal, Iron, Steel, Transport and Gas & Electricity.

By nationalising many industries the government wanted to improve efficiency, secure jobs & provide better pay.

Beveridge predicted unemployment to be at 3% after the war - by 1946 it was 2.5%.

Britain had nearly reached 100% employment

Full employment was…

“The greatest revolution brought about by the Labour Government”

Hugh Dalton – Chancellor of Exchequer

However, 1947 economy nosedived The pound lost value

Unemployment began to rise There was severe fuel shortages and food rationing Dalton, chancellor of Exchequer, was accused of mismanaging the economy and forced to resign.

Attlee faced questions over his leadership.

Despite problems unemployment kept at relatively low rate - never went over 1/2 a million.

By 1951 unemployment fallen to 253,000 and economy was back on track.

Marshall Aid played a huge role in Britain’s economy

This was an American economic plan, carried out in 1948, which was to help European countries oppose Communism by giving them money to invest in the economy to bolster jobs and revitalise industry

Labour after the Reforms During their term in power, the Labour Party suffered some setbacks: the resignation of Dalton The suicide of Ellen Wilkinson, the education minister before Tomlinson Growing division with the party proved damaging.

General Election 1950 saw Labour getting a 5 seat majority - another election was called and this time Tories won outright.

Conclusion and Significance (Of The Labour Welfare Reforms)

Conclusion and Significance Built upon the foundations established by the Liberals in 1906 and those of the wartime coalition government.

Influenced by the practical recommendations of the Beveridge Report (1942), as well as the party’s own socialist ideas.

The reforms attempted to tackle “Five Giants” of British society to create a “cradle to the grave” welfare system.

Conclusion and Significance While the reforms were not wholly successful in eradicating the “Five Giants� they played an important role in reducing poverty.

If the Tories had been elected in 1945, would they had made similar reforms?

When Rowntree visited York in 1950 he found that 2% of the population were defined as living in poverty compared to 36% in 1936.

First real attempt to find a solution to the effects as well as the causes of Poverty.