Labour Reforms - The Welfare State 1945-1951Reforms to address want

After World War Two the Labour Government introduced reforms to establish the Welfare State. These tackled ‘Five Giants’ described in the Beveridge Report.

Part ofHistoryThe making of modern Britain (1880-1951)

Reforms to address want

National Insurance Act 1946

The successes of this were:

  • it provided payments during unemployment and sickness - workers received 26 shillings a week or 42 shillings for married men
  • the elderly received pensions

The limitation of this was:

  • it did not provide for those members of society who were not in work and had not made contributions

Industrial Injuries Act 1946

The successes of this were:

  • it provided payments for those who were temporarily absent from work, due to injury
  • it provided payments for those absent long-term

The limitation of this was:

  • compensation was paid by the government not employers - this meant that the government footed the bill for injuries at work

National Assistance Act 1948

The successes of this were:

  • it provided payments for the unemployed or those who had not paid enough contributions into the National Insurance scheme
  • it provided for the elderly who had not been paying into the National Insurance Scheme during their lives
  • it established a higher standard of living for all

The limitations of this were:

  • it was means-tested - the payments given depended on the amount of money/valuables a family/individual possessed
  • many of the elderly were reluctant to apply for assistance, believing there was a stigma attached to it