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Britain Knowledge Sheets
Britain Knowledge Sheets
1931 General Election: The post-war consensus can be characterised as a belief in: ‘13 Golden Years’ ‘13 Wasted years’
rearmament to fulfil any military requests from the league. Dissatisfaction with rationing
Industrial Injuries Act: Provided cover accidents in the workplace begins the period of consensus Conservatives were seen as united where as Labour were seen
- 1936 Abdication crisis: Baldwin advises King Edward VIII to Nationalisation: Coal, Steel, iron and the railways were all brought under State control as divided on many issues, for instance nuclear weapons and
abdicate so he can marry Wallace Simpson, a divorcee, Housing: By 1951, 1 million good quality council homes were constructed the Korean War
Baldwin is praised for his handling of the crisis. Abolished means testing. 1947 Industrial Charter showed the Conservatives were willing
to adapt and adopt consensus policies.
Chamberlin - Attempts to find ‘peace in our time’ hugely popular with the
Churchill, Eden & Macmillan
British people. Housing: Made good on their commitment to construct 300,000 homes by 1953 (327,000 were built; 354,000 by 1954)/ Mortgages were made Fund and improve the NHS ‘Stop-go’ economic policies led to inflation
- 1938: flew three times to meet Hitler more readily available /Housing subsidy increased from £25 to £35. Keynesian style economics Under Macmillan, the Chancellor, Treasury Minister and
- Once war begins he is forced out of Parliament by a vote of Iron and steel were largely denationalised in 1953 Welfare expenditure continued Financial Secretary all resign because they fear the
no confidence.
Wartime rationing ended in 1954 to grow, in real terms. (19.3% government is spending too much.
Health: 1959 Mental Health Act: modernised treatment to be humane/ 1962: plans were unveiled for 90 new hospitals to be constructed over of GDP in 1964, up from Reversed nationalisation of steel and iron (with the
the following decade. 16.1% of GDP in 1951) support of the people)
Education: pledged that 6000 new schools would be built/ 1963 Robins Report stressed a need for more universities, so 7 more were ‘Butskellism’ described the
Churchill - Had long been a critic of appeasement and an opponent of constructed/ 10 Technical Colleges (for further education) were established. almost identical economic
Hitler policies of the two parties
- Set up a war cabinet of just 5 men to make quick decisions
- Creates new ministries, e.g. Ministry for Aircraft Production
- Emergency Powers Act (May 1940): gave wide-ranging
powers to the British Government
- An essential wartime leader, Churchill maintained public
moral with inspirational speeches. Investment in social and scientific progress Ambitious plans to invest in Policies of full employment are under strain
Department of Economic Affairs: put together the ‘Nation Plan’ to grown= the economy in 1965, but the plan had few ideas on how to technology show a desire for Economic problems: Wilson forced to devalue the
increase productivity, also the Treasury resented competing with the DEA and would not work with them. consensus pound in 1967, loosing him great credibility ($2.80
Harold Wilson
Ministry of Technology: Stifled by lack of funds, encouraged British markets to compete in world trade; supported ambitious projects such as $2.40)
Concorde (1968) and nuclear energy 900,000 unemployed by 1964
New universities and polytechnics built 3.6 million days lost to strike action
Open University created Recession and inflation caused by ‘stop-go’ policies
The failure of extremism
Liberal Reforms: 1965 Race Relations Act, 1967 Abortion Act, Gay sex made legal, 1969 death penalty is abolished, 1970 Equal Pay Act
Late 1960s Britain had a budget surplus
Liberal reforms were also a break from the continuity of
past governments.
Dropping of the ‘National Plan’ in 1967
British Union of Fascists:
- Oswald Mosley forms the BUF in 1932 with the aim of emulating
Mussolini style leadership Cut taxes and spending moved toward a more free market approach to the economy Britain finally joins the EEC Cut to government funding given to councils, led to
- 1971 Industrial Relations Act: decreased power of the Trade Unions (unpopular with the TUC) councils increasing rents on social housing.
BUF was racist and anti-Semitic 1973: Britain joins the EEC Stopped giving free milk to children. Education
- Party founded by Mosley himself and some wealthy aristocrats 1971 Budget: Cuts in income tax and government spending Secretary, Margaret Thatcher was branded ‘Thatcher
Edward Heath
- 50,000 members in the 1930s Unemployment had risen to 1 million by 1972 and Heath conducted a U-turn in government policy and returned to increasing government the Milk Snatcher’ – these were serious cuts to the
- October, 1936: ‘Battle of Cable Street’: BUF march through East controls in prices and incomes and interference in industrial relations. welfare state.
£2.5 billion pumped into the economy for pensions, benefits and tax reductions. Three day week
London (home to many Jews and Irish immigrants) turned into a 1973 Oil Crisis badly affected the British Economy A return to the nationalisation of some industries.
violent clash. Miner’s Strike, 1974: forced Heath to implement a 3 day work week and eventually gives in to the strikers demands.
- WW2 made BUF even more unpopular; Mosley was imprisoned for
three years until 1943 and the BUF was banned.
The Communist Party of Great Britain Economic problems: Increase in Liberal support – 20% vote Liberal in 1974,
1. 1973 Oil Crisis – after oil prices rose by 70% in 1973, inflation increased to 20%. they also have some influence in government.
- Far left, more successful than Mosley
Wilson & Callaghan
2. Britain was dubbed ‘the sick man of Europe’ Labour supports the EEC
- CPGB gained one MP in 1924 and in 1935 3. 1975 Chancellor Heady abandoned commitment to full employment (a key consensus policy) and embraced monetarism IMF crisis changes Britain’s economic policy (move from
- However, only gained a maximum of 0.4% of the popular vote; British 4. Pound devalued, reaching a record low against the dollar in June 1976 full employment to control of inflation)
electorate rejected communism 5. 1976 IMF loan: Britain was forced to take out £4 billion loan from the IMF to cope with the economic crisis. In return for the loan, Britain made Unemployment rose to 1.8 million in 1978
- huge cuts in government expenditure and the budget deficit effects: pound appreciated and the economy improved). Election of Margaret Thatcher – post-war consensus
Strength of Labour prevented Communism from taking off Trade Union problems: ends
- CPGB used ‘entryism’ – tried to infiltrate the Labour Party and steer 6. Winter of Discontent: after a wage freeze (condition of the IMF loan) public service workers went on strike. Staff walked out of children hospitals
their ideas to the left (Labour banned CPGB members from joining and corpses went unburied.
Labour to prevent this). 7. British tabloids exaggerated the crisis leading to public opinion turning against Labour and the Trade Unions.
- They gain some support until Russia helps to defeat Nazi Germany.
1B Changes in the economic landscape
1920s 1930s 1950s & 1960s
‘The Hungry Thirties’ ‘Butskellism’:
Economic legacy of WW1 - -
Refers to the thirties being a period of high unemployment and great The 1951-64 conservative governments accepted Labour’s approach the economy by managing it along Keynesian lines.
- Loss of trade: 20% of British ships were sunk during WW1 and therefore unable to
depression. A term invented by Left-Wing historians to discredit the - Both parties accepted the commitment to full employment and a mixed economy
trade following the war. Britain’s rivals the US and Japan took over many British -
Conservative government who dominated this period. Such the closeness, The Economist branded the approach ‘Butskellism’ to describe this consensual approach; this came
markets. Britain was also unable to trade with many nations she was at war with, as
from the names of Tory Chancellor Butler and Labour Leader Gaitskell.
many became more self-sufficient and continued this practice once the war had ended. A common modern view is that the impact of the depression was uneven across
- Debt: The war cost Britain £3.25 billion with debts of £8 billion by 1920. Wartime debts
Britain - The Illusion of affluence:
rose to 160% of income by 1924. -
1. Areas hit hardest were those that centred on the staple industries, such as The 1950s was seen as a period of affluence; consumer spending rose 45%
- Value of the pound: Britain was forced to abandon the Gold Standard in 1914, in order coal in the North and in South Wales, as well as shipbuilding in Scotland – - This was based on the increased ability for people to borrow money to spend.
to print enough money to cover the costs of war. This resulted in a rise in inflation.
in Jarrow every man was made redundant as all the staple industries But, this had consequences –
- Inflation: rose to 25% by 1918
closed. 1. Growth in inflation (around 4%)
- Technological development: medicine, transport and radio, at-large. Many of France 2. Unemployment rose to 2.5 million (25% of the workforce), but it was higher 2. Increase in imports – led to an imbalance of payments
and Germany’s factories were destroyed causing them to construct new more modern
in the North of Britain.
ones. Britain fell behind in industry and in 1918 Germany was producing twice as much 3. The depression also lowered productivity for the whole country and so Stop-go economics
steel as Britain.
demand for products fell. - The conservative governments of 1951-64 encouraged growth in consumer spending by relaxing laws on borrowing and
- 900,000 men killed: many made up the British workforce. 4. However, areas such as London and the South East remained prosperous credit.
and consumer industries boomed. - However, when the problems of inflation arose, controls to slow the economy down, such as tax rises and lowering wages,
Britain’s economic pattern in the 1920s:
- were put in place.
1919-20: saw a short post war boom; an increased demand for goods. Devaluation of the pound (1931)
- - This inconsistent approach was called ‘stop-go’ and demonstrated that controlling unemployment and inflation was
1920-21: a severe recession as unemployment rose to 12%. Heavy industry was hit - Depression led to a fall in exports by 50% impossible.
hardest as prices rose by 25% and wages failed to keep up with these increases. - Unemployment rose to 2.5 million by 1933
Causes of the recession - - The government cut spending and maintained high interest rates to Corporatism?
1. Loss of trade
preserve the value of the pound. - Britain was lagging behind its rivals in terms of economic growth
2. Underinvestment in traditional industry - The policy divided the Labour government, who resigned and the National - Macmillan’s 1957-63 government decided to follow a corporatism policy – a managed economy that united labour,
3. Declining industrial relations Government was formed. management and government through corporations to plan and achieve economic growth.
How did the recession end - - The National Government removed the pound from the Gold Standard and He established two departments named NEDDY and NICKY:
4. Spending cuts devalued the pound ($4.80 $3.40) NEDDY: The National Development Council and Office – Aimed to produce reports for the future of the economy. It
5. Although unemployment continued to average at around 10%
recommended pay freezes and tax hikes (not popular)
Impact of the pound being removed from the Gold Standard NICKY: The National Incomes Commission – Advisory board for unions and management. Trade Unions refused to cooperate
Failed economic policies - Allowed for quicker recovery from the depression than other countries with it at all.
- This approach was met with criticism from among the Tory party and the media. It was met with a quick U-turn.
The key features of the recovery are – - However, these ideas were continued under Wilson with the Department of Economic Affairs.
Interest Government set high interest rates to curb inflation and raise
1. Unemployment fell from 17% to 8.5% between 1932 and 1937
rates and the value of the pound. However, this curbed economic
Value of the growth and made it more expensive for businesses to borrow 2. Interest rates were cut from 6% to 2% leading to greater borrowing – ‘Dash for growth’
Pound and invest as people were more likely to save then spend. ‘Cheap Money’ - Launched in 1963, after Tories abandon corporatism
Britain returned to the Gold Standard in 1925, which restored 3. Government borrowing was cut by 1.5% - It was a demand management strategy based on the idea that injecting high levels of demand into the economy for a
the pound to its pre-war value($4.86). However, this was 4. Boom in mortgages and house building – triggered by greater borrowing sustained period would stimulate investment, raise productivity and thus enable the expansion to becoming self-sustaining.
disastrous for traditional industry. The high exchange rates 5. Industrial production rose by 46% - The policy was a failure: a higher demand just led to more imported goods and a massive balance of payments deficit.
made British exports more expensive and less competitive.
Stagflation
- By 1964, the key economic problem was stagflation (which was supposed to be impossible under Keynesian policy)
Tax,
spending
To reduce inflation and repay debts as quickly as possible,
taxes were raised each year. (£18 per capita in 1919 £24
1940s The key causes of stagflation were –
1. Increased consumer spending which led to more imports
and per capita in 1922). 2. Increased borrowing from the IMF
balancing WW2 and Economic Policy 3. Rising unemployment
the budget Lloyd George appointed a Commission of National Expenditure to - Churchill expanded the governments role in the wartime economy, e.g.
find out where savings could be made - created several ministries which had a specific role in economic Wilson and devaluation of the pound
1. 1922 Geddes Axe: Led to £24 million in cuts in spending on
management - Wilson attempted to improve economic planning but attempts failed because of stagflation
education, pensions, unemployment benefit, housing and -
health. Government also controlled prices through controlling production levels - DEA never really got off the ground (reasons in 1A)
- National Government transformed Britain into a managed economy – - Avoided devaluation but in 1967 it was devalued from $2.80 to $2.40
2. Defence: Cut from £190 million to £111 million
3. Spending Cuts contributed to growing unemployment; rationing and conscription and registration for employment was made - Wilson tried to reassure the British people but suffered a huge loss in credibility.
never fell below 1 million during the war years. compulsory in 1941.
- During the war years, half the government spending was on military
Protectionism - Introduced duties and tariffs on foreign goods in order to - After the war military spending continued to be a government priority. By
protect British industry which struggled during WW1. They 1951 over 10% of GDP – 30% of expenditure – was on military. 1970s
helped in the short term, but created a lack of incentive to
modernise and compete with foreign traders. Economic aid during the 1940s How did Heath attempt to tackle the economy?
- Industries avoided introducing the changes to become - By December 1940, Britain's cash reserves were spent - Outlined ideas in Selsdon Man
competitive, so failed. - Churchill secured the Lend-Lease Agreement. This allowed the USA to -
- Wanted to reduce State intervention
Other nations imposed retaliatory tariffs which hampered -
supply Britain and debts would be repaid after the War. 1971 budget: cut state spending and tax
international trade. - This led to supplies being brought to Britain on ‘Liberty ships’ - Tried to control the union (1971 Industrial Relations Act)
- Britain was also a recipient of £6 billion of Marshall Aid from 1948
Led to huge unemployment in such areas (by 1933) –
1. 60% in Shipbuilding Why did Heath fail?
2. 49% in Iron and Steel Impact of Austerity - Oil Crisis (1973) – prices rose by 70%
- 1945: Britain had £4 billion worth of debt to the USA and with an additional - Rising inflation – rose by 20% after the crisis
loan in 1945, it would cost Britain just £70 million a day to finance the debt. - Rising unemployment – reached 1 million by 1972
- There was a £700 million deficit - Heath took a U-turn in government policy (refer to 1A)
- £2.5 billion was pumped into the economy. Although, it brought down unemployment to 550,000 it did signal that the Selsdon
Attlee government embarked upon a series of austerity measures – man had been abandoned.
1. Cuts in government spending
Rise of the Trade Unions:
2. Controlling private spending IMF Loan
- War had caused a huge growth in Trade Union membership.
3. Rationing of goods - Due to the Oil Crisis and inflation, Britain was nearly bankrupt.
- Increased from 4.3 million to 8.3 million between 1915 and 1918 -
- Unpopular: with the British public, particularly Trade Unions who were UK negotiated a £3 billion loan from the IMF
- 1926 General Strike: led to 323 strikes and 162 million working days being lost.
instructed to take a wage freeze or expect legal pay restraints. - This led to the abandonment of Keynesian economics as the UK had to conform to many rules in exchange for the loan. It
- Employers fired workers over unions lack of flexibility on wages.
marked a move away from full employment and paved the way for Thatcher in 1979.
- Unemployment never fell below 1 million during the two World Wars.
- Atlee was also forced to devalue the pound in 1949
1C Changes in Industrial Relations
1918-1939 1964-1979
Notable Strikes:
Great Depression and Industrial Relations
- Unemployment rose to 3 million by 1932. Much of this was long-term, by 1932 16.4% of the unemployed had been so for over a year. Year & Event What happened Government response
- Mass unemployment led to a fall in Trade Union membership by almost 50% - from 8 million in 1922 to 4.5 million in 1932.
- Government tended to support the employer in trade disputes. Although, the government tried to supply support for the unemployed, they did not have the resources to do this.
- By 1939, traditional heavy industry was in terminal decline and working conditions remained poverty stricken.
1972 NUM strike NUM demanded a 43% pay Declares State of
rise Emergency
Government offers 8% Eventually offered a 27%
1939-1964 200,000 miners went on pay rise
strike
Employment 1974 NUM strike 1973 Oil Crisis led to higher Government called a 3 day
Second World War led to more employment opportunities, like - wage demands work week.
1. Move towards full employment as Britain engaged in a ‘total war’ NUM demanded a 35% pay - Limited available electricity
2. More women in the work force rise to three days each week.
3. Better working conditions: improved healthcare, longer working hours but better wages. - 50mph driving limit
4. Control of Employment Act: Semi-skilled workers could take on skilled jobs - Some schools closed
5. Essential Work Order: Forced people to do particular jobs, 8.5 million issued by the
- Television ended at 10:30pm
government – made it difficult for workers to be fired.
each night.
There was growth in the ‘white-collar’ industries because – 1974 – Calls election with
6. People, on average, had higher incomes which created a greater demand for more ‘luxury’ campaign slogan ‘who
goods and services like meals out, which created more goods. governs Britain’ – he loses.
7. Government increased spending on healthcare and education, creating more public sector
jobs.
8. White-collar jobs were more difficult to mechanise and so weren’t lost to technological
advances. The Wilson & Callaghan Government (1974-79)
9. The collapse of traditional industry Attitudes towards unions –
10. Better education
1. Labour repealed the Industrial Relations Act and replaced it with a vague ‘Social Contract’ - a
Changes in Industrial Relations voluntary prices and wage control agreement.
2. Callaghan was determined to stick to a 5% limit to pay increases in 1978.
WW2 There were some strikes over wages and working hours
Bevin, a trade unionist, became Minister for Labour in 1940 Deteriorating relationships –
Bevin Boys – men conscripted to work in coal mines between 1943 and 1948.
1944 the government declared its long term commitment to high - 1978: A strike at Ford lead to a 17% raise for workers (embarrassment for the government)
employment - January 3rd, 1978: Oil tanker and Lorry Drivers strike; tanker drivers quickly receive a pay rise.
War led to trade union inclusion in government decision making
Lorry drivers are left to picket for another 6 weeks – people begin to panic buy
Atlee Working with unions; established as part of consensus. January 22nd Strikes lead to the ‘Winter of Discontent’ –
Govern- Key industries were nationalised
ment Trade unionists included on the nationalised board of the Bank of England
- 1.5 million public sector workers go on strike (they were protesting wage increases a condition of
Conservative Industrial Charter (1947) shows consensus views on the IMF loan)
cooperation with the unions and protecting labour rights. - Almost all schools shut and other public building (e.g. libraries)
- Hospital staff strike (only treat emergencies)
1950s Full employment and high trade union membership - Rubbish went uncollected
Deteriorating relationship between the Conservatives and the TUC - In Liverpool, grave diggers strike and by the end of January, 225 corpse were awaiting burial
Double the number of strikes compared with the previous decade
Growing divide between the workers and the middle class - Nearly 30 million working days had been lost to strike action by the end of 1979. 84% of the
public thought Trade Unions had become too powerful.
2A Welfare Support
Pre-1918 The Interwar Years
Overview Unemployment Pensions
- Poor Laws: welfare aid given in form of money or necessities to 1908 Pensions Act
Problems with the National insurance scheme
those in need - Undermined by the War as over 3.5 million returning troops were not eligible for the benefits, this was - State pensions were introduced
- Those in need were typically the old, the young, the sick and the - Hugely popular with eligible – over 70s
because they had not worked in one of the 6 industries or had not made sufficient contributions. The wartime
poor. First three were seen as ‘deserving’ and therefore warranted coalition recognised that reform was needed. - Criticism that they did not support the widows and children of the deceased.
assistance from the Church and the State.
- Until the end of the 19th century, healthy people of working age 1925: Widows’, Orphans and Old Age Contributory Pensions Act
‘Out of Work Donation’ (1918-20)
who fell into destitution were often seen as morally at fault – the - Shor-term solution was to offer benefits in the name of an ‘out of work donation’. It was offered to returning - Brought in by Neville Chamberlain – Minister for Health (would later serve as Prime Minister)
‘undeserving’ poor. They were housed in workhouse, where troops and the civilian population until they found work. - Addressed criticisms of the 1908 Pensions Act
conditions were terrible to discourage people from poverty. - Paid for through taxes and borrowing – there were no individual donations. - Provided a pension of 10 shillings per week for those aged 65-70 and provided for widows, their children and
- The process of showing that you ‘deserved’ welfare was a - orphans.
Established 2 precedents: government took responsibility for helping the unemployed and providing money
humiliating experience. for family dependents. - Funded by compulsory contribution rather than through taxation.
- Initially unpopular with Labour – they thought it penalised the poor; though economic conditions and an aging
The Liberals and State assistance 1920: Unemployment Insurance Act population generally led to its acceptance.
- No distinction between ‘deserving’ and ‘undeserving’ - - Self-employed workers of both sexes were allowed to join the scheme in 1937.
Developed to offer a longer-term solution; 2/3 of workers were eligible to claim insurance
1911: National Insurance Act – - The act was created just when the post-war slump was setting in. Rather than creating a self-funding
1. Employers, employees and the government would contribute to system, the eligible claimant quickly drained the funds.
the scheme - By 1921, the government had to make ‘extended’ payments – meant to be paid for through future
2. Provided benefits and healthcare through the funds provided Housing
employment but in reality were dole payments disguised as insurance Why was reform needed?
3. Only available to low paid workers whose income was less than - A means test was introduced in March 1921; 3 million claims were rejected as a result.
£160 per year. It didn’t insure their families and was only 1. Concern that slums encouraged disease and crime
available to 6 industries. 2. Government had promised ‘homes fit for heroes’
1929: Local Government Act
1917: Ministry of Reconstruction – - County and Borough Councils had to establish Public Assistance Committees (PAC’s); they were centrally
4. After WW1 there was a consensus that the government had to 1919: Housing and Town Planning Act:
funded - Empowered local authorities to used central funds to meet housing needs.
play a role in basic security - In response to the financial crisis of 1931, means testing was introduced; claimants combined household
5. The liberals promised ‘homes fit for heroes’ - Estimated that 600,000 houses would need to be built to meet demand.
income was thoroughly investigated to judge eligibility. - Only 213,000 were built before the Geddes Axe (refer to 1B); shortfall of 822,000 in 1923.
6. The Ministry of Reconstruction was established to build a better
Britain after the War. 1934: Unemployment Act Government Housing Legislation (Labour & Conservative):
- Part 1 of the Act: It provided 26 weeks of benefit payments to the 14.5 million who paid into the scheme. - Tory and Labour Housing Acts of 1923 and 1924, respectively, sought to use subsidies to encourage the
- Part 2 of the Act: Created a National Unemployed Assistance Board (UAB) to help those with no entitlement construction of private and state owned housing.
1964-1979 to insurance; by 1937 UAB had assisted 1 million people on a means tested basis. - Labour Housing Act (1930) encouraged a great deal of home building; improved housing in large cities
- By this point the Poor Law only applied to a few groups of people, such as widows who were not eligible for - 4 million homes were built in total; 1 million by the private sector
a pension. - Between 1924 and 1939, 20 ‘cottage estates’ built outside London; suburbs connected by rail.
Changes to welfare:
- 1959: National Insurance Act – introduced a top up scheme based - Home building not only led to indoor plumbing (prevent disease) but also a greater demand for domestic goods,
However, the government failed to tackle unemployment because they could not stimulate economic growth. such as furniture, further stimulating the economy.
on earnings
- 1971: Family Income Support Program – provided family
allowance for the first child
- 1975: Social Security Act Impact of WW2
Rising cost of welfare:
- Cost of unemployment benefit rose form 0.6% of GDP in 1939 to The impact of the Second World War The Atlee Government
8.8% in 1980 - WW2 led to a wide consensus that welfare provision was needed Labour won the 1945 election with the slogan ‘Let’s face the future’. They promised to implement the findings of the
- 1950/60 baby booms: 900,000 births per year meant higher care - A political will developed to iron out unfairness in the system Beveridge Report.
and education costs There were several reasons for this shift in attitudes:
- Increase in average life expectance (10 years) 1. A total war had prompted universal solutions – it affected everyone Acts of Parliament that laid the foundations of the Welfare State
- Higher living standards, prompted higher minimum standard of life 2. The sacrifices made during the war let to people expecting a just reward
for the poor- with absolute poverty tackled people turned to 3. The evacuation of children to the countryside conveyed the extent of inner city poverty Date Name Objective
tackling relative poverty. 4. The success of the state directed war economy led to confidence around government intervention during
- Growing size of the state required even more beurocracy. peacetime. 1944 Butler Education Act Compulsory free education; introduced tripartite system
5. The war forced government to borrow and spend large sums of money in pursuit of victory. Keynes's
Criticisms of the welfare state: economic views had been proven to work. 1945 Family Allowances Act Weekly payments given directly to the mother; 88% of those eligible
- Margaret Thatcher was a key critic of the welfare state, she feared 6. The National Government showed a great deal of co-operation between the three main parties. had applied by 1949
benefit payments created a poverty trap.
- Many feared the Welfare State was unsustainable with the The Beveridge Report 1946 National Insurance Act Compulsory system to pay for pensions and benefits for the
William Beveridge was a Liberal politician interested in Social Reform. In 1941 he was appointed to head a unemployed.
struggling economy.
government committee to investigation welfare provisions and recommend improvements. 1946 National Health Service Act Brought the entire nation into a free scheme of medical hospital care