New Labour's economic policy

Question 1

What were the aims of the New Deal?

Answer 1

• Reshape the Welfare State
• Provide jobs or training out of work or youngsters (250,000 young people)
• Build a £3 m “welfare to work” programme
• Build a ‘one nation’ society
• Main aim was young people and single parents

Question 2

Description of the Winter Fuel Allowance 1997

Answer 2

A Winter fuel allowance for senior citizens

Question 3

What are the strengths of the Winter Fuel Allowance 1997

Answer 3

• Granted £100 per person regardless of person’s income

Question 4

Weaknesses of the Winter Fuel Allowance 1997

Answer 4

• It was a wasteful use of public money which could’ve been directed to areas else where

Question 5

Description of National Minimum Wage Act 1998

Answer 5

Established £4.85 as minimum hourly wage for adult workers.

Question 6

What are the strengths of the National Minimum Wage Act 1998?

Answer 6

• Raised wages of 1.5 m workers
• Provisions were made for figure to be altered with rise of living
• When it comes out it immediately raised the wages of 1.5 m workers

Question 7

What are the weaknesses of the National Minimum Wage Act 1998?

Answer 7

• Conservatives initially opposed it as a threat to jobs

Question 8

Description of the Jobseeker’s Allowance 1998

Answer 8

• Replaced the existing unemployment benefit and income support with a single Jobseeker’s Allowance.
• Aimed to increase employment

Question 9

What are the strength’s of the Jobseeker’s Allowance 1998?

Answer 9

• 2.5 m claims
• Meant to streamline system
• People had to show they were actively looking to work
• Increase employment

Question 10

What are the weaknesses of the Jobseeker’s Allowance 1998?

Answer 10

• Claimants should be encouraged to work they deserve to be treated with understanding not as an effect of dependency culture.

Question 11

Description of the Working Family Tax Credit 1998

Answer 11

• Aimed to help single parents and reduce child poverty
• Entitled to child allowance which increased wages

Question 12

What are the strengths of the Working Family Tax Credit 1998?

Answer 12

• Didn’t exclude from receiving other benefits
• Supported those with Children

Question 13

What are the weaknesses of the Working Family Tax Credit 1998?

Answer 13

• Still a dependency culture

Question 14

Description of Child Tax Credit 1998

Answer 14

• Aimed to help single parents and reducing child poverty

Question 15

What are the strengths of Child Tax Credit 1998?

Answer 15

• Didn’t exclude from other benefits
• Right to receive child tax

Question 16

What are the weakness of Child Tax Credit 1998?

Answer 16

• Dependency Culture

Question 17

How was Labour’s New Deal different to Thatcherism?

Answer 17

• Full employment wasn’t Thatchers main aim as she didn’t really care whereas the New Deal is more about the people and employment - there is a sense of care for the people

Question 18

Who was the Chancellor of the Exchequer?

Answer 18

Gordon Brown

Question 19

What was the relationship like between Blair and Brown?

Answer 19

• Tension and misunderstanding of each other

Question 20

Detail of economic situation for women

Answer 20

• Women were given pension credits when unable to work because of caring responsibilities
• Childcare provisions extended

Question 21

What were the strengths of the economic situation for women?

Answer 21

• By 2007 all 3+4 year olds were entitled to 12.5 hours a week of free education

Question 22

Detail of economic situation for children

Answer 22

• Establishment of Sure Start centres

Question 23

What were the strengths of the economic situation for children?

Answer 23

• Aimed to help families with children by providing guidance + info to ensure preschool children were ready for school

Question 24

Detail of the economic situation for The Health Service

Answer 24

• Lots of money poured into NHS - more money for nurses and doctors
• Special delivery unit set up in 2001

Question 25

What were the strengths of the economic situation for The National Health Service?

Answer 25

- Waiting lists came down and there was more accountability for patients

Question 26

What were the weaknesses of the economic situation for the National Health Service ?

Answer 26

- Blair was disappointed with the slow rate of change and later thought he should've been more radical earlier - Cost, expensive, leaving a debt

Question 27

Detail of the economic situation of workers

Answer 27

- Traditionally the party of the workers, but union had been in decline - % of workforce that had been part of a union had fell from 29% to 26% - New Labour emphasised pro-business attitudes instead - extended privitisation

Question 28

What were the weaknesses of the economic situation for workers?

Answer 28

- All employees weren't entitled to request up to 3 months of unpaid parental leave for a child under age of 8

Question 29

Detail of the economic situation of crime

Answer 29

- Did a lot to reduce social exclusion in order to stop crime from happening, but also lengthening prison sentences

Question 30

What were the strengths of the economic situation for crime?

Answer 30

- Prove Labour could be as tough on crime as Conservatives

Question 31

What were the weaknesses of the economic situation for crime?

Answer 31

- By 2005 46% of ASBOs went to under 17 year olds

Question 32

Detail of the economic situation for poverty

Answer 32

- Domestic policy did have an impact on inequality and poverty - 1999 Blair pledged to end child poverty in 20 years and through policies like tax credit he had brought it down by a quarter by 2005 - Growing fears of youth crime.

Question 33

What were the strengths of the economic situation for poverty?

Answer 33

- All acts introduced and sure start centers continued to the ending of poverty (aimed to reduce)

Question 34

What were the weaknesses of the economic situation for poverty?

Answer 34

- Critics would argue that enough wasn't done - The gap between rich and poor grew wider

Question 35

Detail of the economic situation for education

Answer 35

- New Labour aimed to for 50% of young people to go to university - Raised amount spent on education to 5.6% of GDP - 1000 new schools opened - By 2007, number of qualified teachers in state schools rose to 35,000 - Academics funded by private sponsorships - Class sized reduced

Question 36

What were the strengths of the economic situation for education?

Answer 36

- Provided special funding to raise standards in under achieving schools in deprived areas

Question 37

What were the weaknesses of the economic situation for education?

Answer 37

- Cost, leaving a lot of debt for next government - Number of NEETs increased to almost 20% by 2007

Question 38

What were the priorities stated on New Labour's Pledge Card?

Answer 38

-Cutting NHS waiting lists - Cutting class sized to 30 - - Getting under 25s off benefits + into work - no rise in income tax - Fast track punishment for persistent young offenders

Question 39

What were the successes of Blair's economic policy?

Answer 39

- Labour inherited a booming economy - Became a party of government who was trusted with the economy - Blair was able to reduce employment below Major's government and keeping inflation low - Bank of England was giving independence - Continued economic growth - 'New Deal' policies reduced inequality and helped those disadvantages in society, especially minimum wage - A growing economy - no more 'relative decline' - Labour now seen as party of economic competence - Three election victories - Massive investment in education and healthcare leading to some positive change - Labour Party remained united and appealed to a wider selection of voters - Devolution (to an extent) - Peace in NI - Blair formed and perused new consensus, Third way. Demonstrates public support of this. - Moved away from 'workers' - Blair had forged new consensus, which helps to explain why the Conservatives found it difficult to attack him.