Creating a Welfare State Flashcards
when were state pensions introduced and who for?
• 1908
• over 70s
what was the unemployment insurance act and when was it introduced?
• 1920
• created the dole for unemployed workers
How was the dole funded for under the Unemployment Insurance act?
• meant to be self-funded by the workers
• however this was made difficult by the 1920-21 recession as more people were unemployed, less funding
• therefore the government had to make extra payments
Why was the means test introduced and when was it introduced?
• 1931
• introduced as a money saving measure for the government - a way of investigating and testing if poor people were eligible for benefits
Why did the people hate the means test?
• the test was carried out by local Public Assistance Committees - some were fairer than others
• the test was degrading and an invasion of privacy
• by 1931 400 000 people had their benefits reduced or were refused them
Why did the government find it difficult to ‘solve’ the issue of unemployment 1918-1939?
• spending cuts and tax rises didn’t stimulate the economy to create jobs
• too many were unemployed due to the Depression - too expensive to support them all
When was the Housing and Town Planning Act introduced and what did it do?
• 1919
• aimed to give power to local councils to use government money to meet housing needs
What did the Tory and Labour Housing Acts do and when were they introduced?
• 1923
• encouraged private and state owned building using subsidies
what did the (Labour) Housing Act do and when was it introduced?
• 1930
• promoted house building and used government money to rehouse people living in overcrowded areas
• most public housing was built in Manchester, Birmingham, Sheffield and Liverpool
How was the government’s house building scheme successful?
• 4m houses built between 1919-1940
• 20 ‘cottage estates’ built on the outskirts of London between 1924-39, connected to London by rail - work was accessible
• increased housing led to increased consumerism of furniture, boosting the economy and standard of living
How was the government’s house building scheme unsuccessful?
•600 000 houses needed to be built but only 213 000 were built before the Geddes Axe 1922 cut funding
• by 1923 a shortfall of 822 000 houses
• newly married couples had to continue living with their parents
• hardly any jobs at new estates
What was the Widows’, Orphans’ and Contributory Old Age Pension Act and when was it introduced?
• 1925
• provides pension scheme for low paid workers and sets retirement age at 65, still requires a means test
• funded for by insurance
Why were Labour against the 1925 Widows’, Orphans’ and Contributory Old Age Pension Act?
Because it hurt the poor as more money was being spent on pensions rather than unemployment benefits
Why was pension reform more successful than unemployment solutions?
It was set by Chamberlain and not changed around as much, unlike unemployment reforms as there was only so much that the government could do.
Why were governments continually having to review and change welfare provision from 1918-1939?
Due to the change in the demands of the people after the war:
• during the depression unemployment peaked at 3 million: therefore welfare had to change to provide them more benefits and support
• pensions had to change in order to prevent those relying on them from becoming poor
• housing demands increased after WW1, (homes for heroes) therefore subsidies had to be provided for private and state owned building to meet those demands
Why were pension reforms successful?
• they were set and unchanging and funded by compulsory contribution (insurance) ; didn’t rely on taxpayers - if they did the government might have lost their support on Liberal Reforms
• provided good support to those eligible in a tough economy
how did the insurance system work?
friendly societies collecting subscriptions in order to pay medical costs
what were friendly societies?
mutual associations for the purposes of insurance, pensions, savings or cooperative banking who delivered voluntary welfare provision to Britain
Why were friendly societies not completely reliable?
• some were so small that they couldn’t afford to pay for the members’ hospital treatment
• some went bankrupt and couldn’t provide their members with any insurance whatsoever
what did the National Insurance act 1911 do and how was this an issue?
• only insured workers, therefore widows, wives and children had to rely on sympathetic support form local communities, family or GPs that wouldn’t charge them for healthcare
Why did GPs have varying incomes in different parts of the country?
• GPs charged for consultations and treatments; therefore they thrived in more well off areas
• however in poorer areas the people would only use GPs as a last resort and sometimes couldn’t pay for treatment
• therefore GPs would struggle to get by and would have to hire debt collectors to stay afloat
Why was hospital provision inadequate?
• relied on charitable funds - often would have to declare itself bankrupt
• hospitals were voluntary and were only staffed by visiting consultants or GPs
What was the impact of WW2 on healthcare?
• led to the creation of nationally funded organisations to deal with healthcare e.g National Blood Transfusion Service 1846 and Emergency Medical Service 1939 for civilian and military casualties
• the number of specialist treatments grew e.g plastic surgery, mending of broken bones
• led to the creation of the NHS - successful state response to dealing with war casualties inspired Beveridge report
Why did the health of the average Briton improve during WW2?
• rationing and increased government propganda about staying healthy
Why were pension reforms also unsuccessful?
• pensions were means tested and were for over 70s despite the life expectancy at the time being 48
• not enough, many on pensions were in poverty
