Liberal Welfare Reform

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Between 1906 and 1914, the liberal government took steps in the provisions of welfare policies in a bid to help the impoverished people of Britain. These steps indicated a move away from the non-intervention policy known as ‘laissez faire’ to a more ‘collectivist’ approach. The changes which took place signalled a huge change in attitude; the poor were no longer condemned, but were accepted as unfortunate but equal citizens, whose rights had to be acknowledged. The reforms aimed to help the young, old, unemployed and sick, as it was clear that these groups were more likely to endure poverty. Winston Churchill summed the nature of the liberal welfare reforms, ‘If we see a drowning man we do not drag him to the shore. Instead we provide help…show more content…
This Act was the culmination of 20 years debate and inquiry into the subject of poverty amongst the elderly. It was the task of Lloyd George to get the Liberal Old Age Pensions Bill through the Commons. The Bill became law in August 1908, with effect from January 1909. Those over seventy years of age were entitled to a weekly pension paid through post offices free of the stigma of the old poor law. Entitlement depended on income. A pensioner with a yearly income of up to £21 received the full 5 shillings a week. Those with an income between £21 and £31 received between 1 and 5 shillings. Those with an income above £31 were not entitled to the pension. In the first year 650,000 received the pension at a cost to the government of £8 million. By 1914 almost one million were in receipt of the pension. It was extremely popular, helped remove dependency on the family, removed the fear of the poor house and allowed those who claimed it pride and independence. The gratitude of the pensioners is vividly portrayed in ‘Lark Rise’ by Flora Thompson - “At first they went to the Post Office to draw it, tears of gratitude would run down the cheeks of some as they picked up the money, ‘God bless that Lord George!’ and ‘God bless…show more content…
The scheme got under way in July 1912 but benefits were not payable until January 1913. Compulsory for workers in certain trades susceptible to seasonal unemployment 2.3 million workers paid 2.1/2d per week, their employers paid a similar amount and the government 12/3d. In return these workers were entitled to unemployment benefit of 7 shillings per week payable for up to 15 weeks from the labour exchange. The unemployment insurance fund prospered and by 1914 it had a surplus £23 million in

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