The Labour ReformsThe Labour Reforms(1945-1951)(1945-1951)

The Welfare StateThe Welfare State

• A A complete systemcomplete system of state help and of state help and benefits started in 1945 by the Labour benefits started in 1945 by the Labour government to do away with all the causes government to do away with all the causes of poverty identified by the Beveridge of poverty identified by the Beveridge Report.Report.

• A A universaluniversal, , comprehensivecomprehensive and and adequateadequate answer to Britain’s poverty. answer to Britain’s poverty.

How was it paid for?How was it paid for?

1.1. National Insurance contributions from National Insurance contributions from workers’ wages.workers’ wages.

2.2. Nationalisation of essential industries.Nationalisation of essential industries.3.3. Rationing continued on food, fuel and Rationing continued on food, fuel and

clothing.clothing.4.4. A loan from the USA.A loan from the USA.5.5. ‘‘Marshall Aid’ from the USA. £2.4 billion Marshall Aid’ from the USA. £2.4 billion

given to Britain to provide a barrier given to Britain to provide a barrier around Communism from Russia.around Communism from Russia.

1946 National Insurance Act1946 National Insurance Act

• People in work, except People in work, except married women, paid married women, paid 4s 11d a week in 4s 11d a week in National Insurance National Insurance contributions. contributions.

• For the average For the average worker, this amounted worker, this amounted to just 5% of their to just 5% of their income.income.

1946 National Insurance Act1946 National Insurance Act

• Rates of benefit:Rates of benefit:– Single person – 26sSingle person – 26s– Married couple – 42sMarried couple – 42s

• Remember, this one Remember, this one benefit would be benefit would be adequateadequate in in preventing that person preventing that person from living in poverty.from living in poverty.

NationalisationNationalisation

• Certain key industries were taken over by the Certain key industries were taken over by the government (i.e. not a company).government (i.e. not a company).

• The Bank of England, telephone, civil aviation, The Bank of England, telephone, civil aviation, along with industries such as coal, electricity, along with industries such as coal, electricity, railways, gas, iron and steel were all railways, gas, iron and steel were all nationalised.nationalised.

• It kept unemployment very low (It kept unemployment very low (savingsaving money) money) but some industries (like coal mining) were run but some industries (like coal mining) were run badly and badly and costcost the government money. the government money.

1946 Industrial Injuries Act1946 Industrial Injuries Act

• Payments for those temporarily hurt.

• Long-term payments for anyone permanently unable to work.

• This group also got a higher rate of benefit than someone just out of a job.

1948 National Assistance Act1948 National Assistance Act

• This was set up to help those who could not afford to make insurance contribution because they were not working, received low wages or were handicapped.

• People had to undergo a ‘needs test’. This was better than the old ‘means test’ because it did not look at the earnings of your family.

• Provided one-off or weekly benefits for things like bedding and clothing.

National Health Service Act 1948National Health Service Act 1948

• Aneurin Bevan was Minister of Health and Housing and put into practice the National Health Service proposed by Beveridge.

• Medical treatment and health care were to be paid for from national insurance.

• It would be the right of all people to receive free treatment.

Opposition from DoctorsOpposition from Doctors

• Two thirds of doctors did not want to join Two thirds of doctors did not want to join the NHS. They were worried that:the NHS. They were worried that:– They would simply become government They would simply become government

workers rather than having their own private workers rather than having their own private practice – they would be ordered around.practice – they would be ordered around.

– They would lose money because patients They would lose money because patients would not pay them directly any more and would not pay them directly any more and they would just receive a fixed salary from the they would just receive a fixed salary from the government.government.

Opposition from DoctorsOpposition from Doctors

• Bevan Bevan delayeddelayed the NHS for the NHS for two yearstwo years whilst whilst discussions took place.discussions took place.

• HospitalHospital doctors knew they needed money for doctors knew they needed money for new hospitals and equipment so they agreed.new hospitals and equipment so they agreed.

• The country was divided into The country was divided into Regional Boards Regional Boards (there were 5 in Scotland).(there were 5 in Scotland).

• GPs were to be paid 15s for every patient on GPs were to be paid 15s for every patient on their list but also allowed to have private patients. their list but also allowed to have private patients.

• The NHS started in 1948 and 90% of doctors The NHS started in 1948 and 90% of doctors joined it.joined it.

Not enough money!Not enough money!

• The NHS was needed more than The NHS was needed more than expected. National Insurance only expected. National Insurance only provided about 9% of the costs of the NHS provided about 9% of the costs of the NHS (many more people than expected).(many more people than expected).

• The government had to bring in charges The government had to bring in charges for prescriptions, dental care and for prescriptions, dental care and spectacles.spectacles.

• Bevan was so annoyed at this that he Bevan was so annoyed at this that he resigned from the government.resigned from the government.

Source B is from a speech by the Health Minister in 1946.

This Bill will give us a free universal health service that will be paid for in full by National Insurance contributions. We do not intend to limit the amount of help given. There will be a service of local GPs, specialists, hospitals, eye treatment, dental treatment and hearing facilities.

How useful is Source B as evidence of the introduction of the National Health Service by the Labour Government?

C-O-P-C-RC-O-P-C-R

• C = CONTEXTC = CONTEXT (background info) (background info)

• O = ORIGINO = ORIGIN (who wrote it and when) (who wrote it and when)

• P = PURPOSEP = PURPOSE (why was source written, (why was source written, who was it aimed at)who was it aimed at)

• C = CONTENTC = CONTENT (what does the source tell (what does the source tell us)us)

• R = RECALLR = RECALL (what does the source (what does the source notnot tell us)tell us)

ContextContext

• The source refers to the National Health The source refers to the National Health Service, which was introduced by the Service, which was introduced by the Labour Government in 1948.Labour Government in 1948.

OriginOrigin

• It is a primary source, taken from a speech It is a primary source, taken from a speech by the Health Minister, Aneurin Bevan, at by the Health Minister, Aneurin Bevan, at the time of the Labour Government in the time of the Labour Government in 1946. It is a primary source, so it is useful 1946. It is a primary source, so it is useful because it tells us exactly what was said because it tells us exactly what was said at the time, however, it does not have the at the time, however, it does not have the benefit of hindsight.benefit of hindsight.

PurposePurpose

• The speech was delivered to outline The speech was delivered to outline Labour’s plans for the National Health Labour’s plans for the National Health Service. It was aimed at the general Service. It was aimed at the general public.public.

ContentContent

• The source reveals that the NHS would be The source reveals that the NHS would be universal (available for everyone) and universal (available for everyone) and would be completely free of charge. It also would be completely free of charge. It also says that every health need would be met says that every health need would be met and that there would be no limit as to how and that there would be no limit as to how much or how little treatment was needed.much or how little treatment was needed.

RecallRecall

• The source does not however explain how The source does not however explain how there was fierce opposition from doctors. It there was fierce opposition from doctors. It also does not say that double the number also does not say that double the number of patients than expected and National of patients than expected and National Insurance contributions only covered 9% Insurance contributions only covered 9% of the cost. The source does not explain of the cost. The source does not explain that charges had to be brought in for that charges had to be brought in for dental treatment, opticians and dental treatment, opticians and prescriptions, and that Aneurin Bevan prescriptions, and that Aneurin Bevan resigned in protest.resigned in protest.

Finally…Finally…

• The source is useful as evidence of the introduction of the National Health Service by the Labour Government to a certain extent.

ActivityActivity

• Make a list of all the things in your house Make a list of all the things in your house that you take for granted.that you take for granted.

• ElectricityElectricity• LightingLighting• Central Central

HeatingHeating• Clean running Clean running

waterwater• Toilet / BathToilet / Bath• CookerCooker• DishwasherDishwasher• Washing Washing

machinemachine• Own bedroomOwn bedroom• CarpetsCarpets• Audio / VisualAudio / Visual• VentilationVentilation

Housing ProblemsHousing Problems

• As the state of evacuees had shown, many people were living in terrible housing conditions, such as the slums of Glasgow.

• Many homes had also been bombed during the war.

• There were many homeless people.

• It was estimated that Scotland alone needed 469,000 new homes.

Housing ReformsHousing Reforms

• Aneurin Bevan (Minister of Health) was given the responsibility for housing. Can you think why?

• Firstly, Bevan restricted private house building so that building supplies and labour could be used for council housing.

Prefabricated HousingPrefabricated Housing

• ‘‘Prefab’ houses were built off-site in Prefab’ houses were built off-site in sections that could be easily shipped and sections that could be easily shipped and slotted together.slotted together.

• 157,000 prefabricated houses were built in 157,000 prefabricated houses were built in Britain.Britain.

• Although they were only to be a temporary Although they were only to be a temporary solution, many were inhabited for years solution, many were inhabited for years and even decades, some even today! and even decades, some even today!

1946 New Towns Act1946 New Towns Act

• Twelve new towns would provide good quality housing in a good environment for people who had lived in the overcrowded cities.

• Their local communities would have schools, shops and leisure facilities for children and adults.

• Industry would be kept away from the houses.

New Towns in ScotlandNew Towns in Scotland

• East Kilbride (1947)East Kilbride (1947)

• Glenrothes (1948)Glenrothes (1948)

• Cumbernauld (1955)Cumbernauld (1955)

• Livingston (1962)Livingston (1962)

• Irvine (1966)Irvine (1966)

1947 Town & Country Planning Act1947 Town & Country Planning Act

• This act gave local authorities powers to buy land for building low cost houses, and to preserve historic buildings.

• Local authorities could obtain a 75% subsidy for building council houses.

• Planning permission from council now needed to develop land.

• It also defined a green belt land that had to be kept rural.

1949 Housing Act1949 Housing Act

• Local authorities were allowed to buy Local authorities were allowed to buy homes for improvement or conversion.homes for improvement or conversion.

• 75% of the costs were available from the 75% of the costs were available from the government.government.

• Private home-owners could get 50% home Private home-owners could get 50% home improvement grants.improvement grants.

How Successful?How Successful?

• By 1951, 700,000 new homes had been By 1951, 700,000 new homes had been built, a great achievement considering the built, a great achievement considering the country was still recovering from the war.country was still recovering from the war.

• There was still a huge shortage though.There was still a huge shortage though.

• 5 million servicemen and women had 5 million servicemen and women had returned home. Many married couples returned home. Many married couples were forced to live with their parents.were forced to live with their parents.

• Quantity over quality was the priority.Quantity over quality was the priority.

ActivityActivity

• Your local council has 200 homes, but Your local council has 200 homes, but there are 3000 families who want them.there are 3000 families who want them.

• The Housing Committee decides which The Housing Committee decides which families are most in need.families are most in need.

• Prepare a statement with your partner Prepare a statement with your partner explaining why you should get a house.explaining why you should get a house.

• The Committee will hear your statement The Committee will hear your statement and decide if you should get a house.and decide if you should get a house.