Effectiveness of the Labour social welfare reforms, 1945–51Did the reforms address problems of "idleness"?
The post-war Labour government introduced the Welfare State to address the 'Five Giants' of disease, squalor, want, ignorance and idleness. The measures introduced had varied levels of success.
One way in which the government kept almost full employment was through nationalisation. Industries in Britain were brought under the control of the government.
Details and successes
steel, iron, gas, coal, electricity industries and the railways were nationalised in order to create and maintain job levels
nationalisation helped the government manage the economy
tax money could be used to keep an industry afloat in times of economic difficulties
supporting industries could be used to avoid job losses
the Labour government succeeded in its commitment to maintain high levels of employment after the war
by 1946, unemployment was reduced to 2.5 per cent
this was in spite of huge post-war problems, such as shortages of raw materials and massive war debts
Limitations
nationalisation did little to improve working efficiency in these industries
supported by taxation money, these industries had limited incentive to be profitable
wages and working conditions remained generally unimproved
