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History

The Five Giants

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Beginnings of the welfare state

Throughout World War II, the country was run by a government formed from a coalition of Labour, Conservative and Liberal politicians.

During the war, the government became much more involved in people's lives. As part of the war effort, the government organised the rationing of foodstuffs, clothing and fuel and gave extra milk and meals to expectant mothers and children.

Far from being resented, most people welcomed this government intervention and wanted it to go further. The government was seen to be taking an active interest in providing for the welfare of the people.

More than any other person, William Beveridge's name is associated with the setting up of a blueprint for the post war Welfare State.

His Report on Social Insurance and Allied Services was published in December 1942 and it created much public interest at the time. It was this report that had such a large influence on Labour's reforms after 1945. In essence, Beveridge advocated that all people in work would pay a single weekly flat rate contribution into the state insurance fund.

This would cover all possible contingencies that might befall people throughout their lives. In return for these contributions, a new Ministry of Social Security would provide people with subsistence in the form of sickness, medical, maternity, old age, unemployment, widows, orphans, industrial injury and funeral benefits.

The main points of the Beveridge Report were as follows.

  • The appointment of a minister to control all the insurance schemes.
  • A standard weekly payment by people in work as a contribution to the insurance fund.
  • The right to payments for an indefinite period of time for the unemployed.
  • Old age pensions, maternity grants, funeral grants, pensions for widows and for people injured at work.
  • Payments at a standard rate, the same for all citizens whatever private means they had, paid without a means test.
  • The introduction of family allowances.
  • A new national health service to be established.

However, the post-war Labour Government is sometimes given too much credit with bringing a welfare state into being and credit ought to be given to the wartime Coalition Government which consisted mostly of Conservatives. The Conservatives were responsible for many of the acts and measures that would later result in the welfare state.

It is crucial to note that the Conservatives themselves based many of these acts on existing reforms made by previous governments such as the 1906 -1914 Liberal administration.

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