Liberal reforms

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David Lloyd George was one the 'New Liberals' who passed welfare legislation

The Liberal reforms (1906-1914) collectively describes legislation passed by the British Liberal Party after the 1906 General Election. It has been argued that this legislation shows the emergence of the modern welfare state. The reforms show a change in the attitude of the Liberal Party towards poverty. They shifted their outlook from laissez-faire system to a more collectivist system.^[1] The reforms demonstrate the shift of the Liberal Party from a party of small government and classical liberalism to a party of progressive liberalism and larger, more active government.

During the 1906 General Election campaign none of the parties made poverty an election issue and no promises were made to introduce welfare reforms. Despite this the Liberals led by Henry Campbell-Bannerman won a landslide victory and began introducing wide ranging reforms as soon as they took office^[2].

1 Reasons for the Liberal reforms
2 Social legislation passed by the previous Conservative government
3 Liberal reforms 1906-1914
4 People's Budget and the 1909 constitutional crisis
5 Reforms after 1910
6 Criticism of the scale of reform
7 Contemporary criticism of the Liberal reforms
8 Legislation included as part of the Liberal reforms
9 The beginning of the welfare state?
10 External links
11 References

[edit] Reasons for the Liberal reforms

The rise of progressive liberalism within the Liberal Party. Before this period classical liberalism had been the dominant ideology within the party. Classical liberalism emphasised a laissez-faire system of government to protect liberty. Progressive liberalism was an ideology which promoted state intervention - several 'New Liberals' such as David Lloyd George and Winston Churchill replaced the earlier ideology apparent in figures such as William Gladstone (see Gladstonian Liberalism) who felt that people should be more self reliant.
The writings of Charles Booth and Benjamin Seebohm Rowntree. These writers helped change attitudes towards the causes of poverty. They stated that illness and old age were greater causes of poverty than idleness and moral weakness. Rowntree was himself a close friend of Lloyd George, after the two met in 1907 after Lloyd George became President of the Board of Trade. Rowntree himself hoped that his proposals could influence Liberal policy.^[3]
The threat from the emerging Labour Party. Socialism was an increasingly popular ideology; if the Liberals did not put forward popular policies, they were in danger of losing votes and handing the House of Commons to the Conservatives.
The trade union movement was growing especially during the period 1910-1912. Unless living conditions were improved there were genuine concerns that workers may turn to communism or rebellion.^[4].
The fact that the Liberals had to form a coalition government with the Labour Party after the 1910 General Election meant that further legislation was passed, since the Labour Party was allied to workers and socialists through the affiliated trade unions.
The condition of soldiers during the Boer War was considered unacceptable. The British government had trouble enlisting enough able-bodied recruits to the British army.
Germany and the USA were overtaking Britain as economic powers - the success of social legislation in Bismarck's Germany made leading Liberals in the UK such as David Lloyd George and Winston Churchill want to put forward similar legislation.
The emergence of public works schemes set up to improve living conditions which were often run by the Liberals raised the possibility that such schemes could occur on a national scale^[5].

[edit] Social legislation passed by the previous Conservative government

The Conservative government in office before the Liberals came to power passed the Unemployed Workman's Act in 1903 and the Employment of Children Act in 1905. Slum housing was also cleared for new houses to be built. However, much of this legislation was left for local authorities to implement - their attitudes affected whether legislation was fully implemented^[6]. The Conservatives also set up a Royal Commission to enquire into the workings of the Poor Law.

[edit] Liberal reforms 1906-1914

[edit] Children

In 1906 Children were provided with free school meals and in 1908 the Children and Young Person's Act formed part of the Children's Charter which imposed punishments for those neglecting children. It became illegal to sell children cigarettes and tobacco or to send children begging. Juvenile courts and borstals were created instead for young offenders so they did not have to stand in adult courts and go to adult prisons for most offences^[7]. However, it was not until 1912 that medical treatment was available even though the medical inspections began in 1907. Education authorities largely ignored the provision of free medical treatment for school children^[7]. The provision of free school meals was made compulsory in only 1914. In 1912, only half of all councils in Britain were offering the scheme.

[edit] Elderly

In 1908 Pensions were introduced for the over 70s. This paid 5s a week (25p in today's money^[8]) to single men and women and 7s 6d to married couples, on a sliding scale. The single persons rate applied to those over 70 earning under £21, this sum could be collected at the local post office^[9]. However, the pensions were means-tested (to receive the pension one had to earn less than £31.50 annually) and intentionally low to encourage workers to make their own provisions for the future and those that had failed to work during their lives received nothing at all ^[7] ^[10]

[edit] Workers

In 1909 Labour exchanges were set up help unemployed people find work, by providing centres where a large amount of employers and the unemployed to post jobs and apply for them. The National Insurance Act (Part I) passed in 1911 gave workers the right to sick pay of 10s a week in return for a payment for 4s and free medical treatment. The National Insurance Act (Part II) gave workers the right to unemployment pay of 7s 6d a week for 15 weeks in return for a payment of 2½d a week. ^[7]

[edit] Health Insurance

Compulsory health insurance was provided for workers earning less than £160 per year. The scheme was contributed to buy the worker who contributed fourpence, the employer who contributed threepence and the government who contributed twopence. The scheme provided sickness benefit entitlement of nine shillings (45 pence), free medical treatment and maternity benefit of 30 shillings (£1.50)^[11].

[edit] Unemployment insurance

Most insured workers were given seven shillings (35 pence) unemployment benefit which could be claimed for up to 15 weeks. This scheme was also financed through the contributions of workers and government.

[edit] People's Budget and the 1909 constitutional crisis

The Liberal reforms were funded by David Lloyd George passing his controversial People's Budget which heavily taxed the rich in order to pay for welfare solutions for the poor. The budget met opposition in the House of Lords and passed with a Parliament Act to limit the powers of the Lords over the Commons. The crisis led to the Liberals losing their majority in the House of Commons and relying on the support of the small number of Labour and Irish nationalist MPs.

Lloyd George argued that his budget would eliminate poverty, while trying to get the Act passed he gave this speech outlining his reasons for supporting the reforms:

"This is a war Budget. It is for raising money to wage implacable warfare against poverty and squalidness. I cannot help hoping and believing that before this generation has passed away, we shall have advanced a great step towards that good time, when poverty, and the wretchedness and human degradation which always follows in its camp, will be as remote to the people of this country as the wolves which once infested its forests." ^[12]

-David Lloyd George describing the reasons for his "People's Budget"

[edit] Reforms after 1910

After 1910 The Liberal Party did not have a majority in the House of Commons and so entered into a coalition with 42 Labour Party MPs who had been elected. This led to further reforms as the Liberals required Labour support and Irish support to remain in office^[13].

[edit] Criticism of the scale of reform

While the Liberal reforms were one of Britain's most ambitious welfare reforms programmes, there were several limitations to the reforms they passed. Free school meals were not compulsory. Pensions were refused to those who had not been in work most of their life and the Labour exchange programme often managed to find people only part-time casual work. The poor had to pay National Insurance Contributions out of their wages and the 7s 6d was not enough to live on. Dole and sickness pay also only lasted for a limited time. Free medical care was available to only a wage-earner, not the wife or children^[14].

[edit] Contemporary criticism of the Liberal reforms

The Liberal reforms received criticism from those who saw this level of government intervention in people's lives as preventing self-help. The cost of the reforms was also criticised and there were also critics who suggested that the reforms would not work in practise.^[15]

Some workers objected to paying 4d per week to the National Insurance contributions.^[16] The chant "Taffy was a Welshman, Taffy was a thief" was chanted at Lloyd George by workers and referred to the suggestion that Welshman Lloyd George was taking their wages away from them.^[17]. However, Lloyd George responded with his famous phrase "Nine pence for four pence" which referenced to that fact that employers and the government were topping up the workers' contributions.^[18]

[edit] Legislation included as part of the Liberal reforms

1906 Trade Disputes Act - ruled that unions could not be considered liable for damages because of strikes.
1906 Workmen's Compensation Act - Granted compensation for injury at work.
1906 Merchant Shipping Act
1906 Education (Provision of Meals) Act
1907 Education (Administrative Provisions) Act - created school medical inspections .
1908 Mines Act - Miners now worked 8 hour days.
1908 Children and Young Person's Act (Children's Charter)
1908 Old Age Pensions Act
1909 Labour Exchanges Act
1909 Trade Boards Act
1909 Housing and Town Planning Act
1911 National Insurance Act
1911 Shops Act - shop owners could not take half a day off work per week.
1912 Minimum Wage Act (Miners)

From 1911 MPs were also paid, meaning that it was much easier for working class people to stand for election.^[19].

[edit] The beginning of the welfare state?

With the Beveridge Report and reforms of the Labour government under Clement Attlee creating what would be considered the modern welfare state protecting citizen's from "cradle to grave" it can be argued that the Liberal reforms show the emergence of the welfare state some forty years earlier. However, the Liberal reforms were not a preconceived welfare programme; it was more a response to political change (the newly enfranchised working classes and emerging Labour Party) and political factors such as the Boer War. The reforms were not collectivist in the sense that they relied on local government for implementation and still involved working with friendly societies. The implementation of these reforms by local government was patchy.

Only pensions were non-contributory, the health and insurance reforms required contributions. Rosmary Ree's argues in Poverty and Public Health 1815-1948 that the reforms also contained an element of Victorian moral attitudes in that the reforms ignored sections of society considered undeserving of help. But the reforms did signal a fundamental shift in attitudes towards poverty and the Poor, the redistribution of wealth through higher taxation which occurred in Lloyd George's People's Budget would be repeated in Labour's reforms between 1945-1951.

[edit] External links

[edit] References

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Categories: Poverty | UK Liberal Party | Political history of the United Kingdom