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David Lloyd George
David Lloyd George was one of the 'New Liberals' who helped create new laws to help people.

The Liberal welfare reforms (1906–1914) were a set of important laws passed by the Liberal Party in the United Kingdom. These laws were introduced after the 1906 election. They marked the beginning of the modern welfare state in the UK, which is when the government takes on a bigger role in looking after its citizens.

These reforms showed a change in how the Liberal Party thought. Before, they believed in "laissez-faire" (meaning the government should interfere as little as possible). But now, they started to think the government should be more active in protecting people's well-being. Historians say these changes happened for many reasons, like wanting to stop the Labour Party from becoming too strong, a desire to help people, wanting to be popular with voters, and a focus on making Britain stronger as a nation. These new laws also helped remove the shame people felt when asking for help, as they were separate from the old, often harsh, English Poor Laws.

Even though poverty wasn't a main topic in the 1906 election, the Liberals, led by Henry Campbell-Bannerman and later H. H. Asquith, won by a lot. They then started introducing these big changes soon after they took power.

Why the Reforms Happened

Gladstone
The ideas of William Ewart Gladstone (called Gladstonian Liberalism) became less popular as new ideas about government help grew.
  • New Ideas in the Liberal Party: Some Liberals, called 'New Liberals' like David Lloyd George and Winston Churchill, believed the government should actively help people. This was different from older Liberal ideas, which thought the government should mostly stay out of people's lives. The 'New Liberals' felt that things like poverty or illness could stop people from being truly free, and the government should step in to help.
  • Studies on Poverty: Researchers like Charles Booth and Seebohm Rowntree did detailed studies on poverty in cities like London and York. They found that illness and old age were bigger causes of poverty than laziness. Their work showed that many people were poor through no fault of their own, which changed public opinion and influenced politicians like Lloyd George.
  • Threat from the Labour Party: The Labour Party was growing and becoming more popular, especially with working-class people. The Liberals knew that if they didn't offer policies that helped ordinary people, they might lose votes and power.
  • Growing Trade Unions: Trade unions, which represent workers, were becoming very strong. There were worries that if living conditions didn't improve, workers might become very angry and even rebel.
  • Support from Labour: After the 1910 election, the Liberal Party needed the support of the Labour Party to stay in power. Because the Labour Party cared a lot about workers' rights, this encouraged the Liberals to pass more laws to help people.
  • Soldiers' Health: During the Second Boer War, many potential soldiers were found to be too unhealthy or weak to join the army. This made the government worry about the health of the nation and its ability to defend itself.
  • Learning from Other Countries: Countries like Germany and the United States were becoming strong economic powers. Germany, for example, had already introduced social welfare laws. This made British leaders like Lloyd George and Winston Churchill want to do similar things to keep Britain competitive.
  • Local Projects: Some local areas had already started public projects to improve living conditions. This showed that such schemes could work and could be expanded across the whole country.

What Happened Before

Before the Liberals came to power, the Conservative government also passed some laws to help people. For example, they passed the Unemployed Workmen Act 1905 and the Employment of Children Act in 1905. They also started clearing out very poor housing to build new homes. However, many of these laws depended on local councils to put them into action, so how much they helped varied a lot.

Liberal Reforms 1906–1914

Helping Children

In 1906, a law was passed to provide free school meals for children. At first, many local councils didn't offer these meals because it wasn't required and it cost them a lot. But in 1914, providing free school meals became compulsory, and millions of meals were served each school day. This was important because many children from working-class families were not getting enough to eat, which affected their health and ability to learn.

The Education (Administrative Provisions) Act 1907 made it possible for more children from poorer families to go to secondary school. If a working-class child passed a special exam, their school fees would be paid. This gave bright children a chance to get a better education.

The Probation Act 1907 set up a probation service to help young offenders stay out of prison by supervising them in the community. In 1908, the Children and Young Persons Act 1908, also known as the "Children's Charter," made it illegal to sell tobacco, alcohol, or fireworks to children, or to send them begging. It also created special juvenile courts and borstals (youth detention centers) for young offenders, so they wouldn't have to go to adult courts or prisons.

Medical inspections for schoolchildren started in 1907. However, many poor families couldn't afford the doctor's fees for treatment. It wasn't until 1912 that free medical treatment was provided for children. In 1909, a tax allowance was introduced for families with low incomes, giving them £10 a year for each child under 16.

Helping the Elderly

The Old Age Pensions Act 1908 was a major reform. It introduced pensions for people over 70 years old. Single men and women received 5 shillings a week, which they could collect at the local post office. This was a small amount, but it was a huge help for many elderly people who had no other income.

To get a pension, people had to meet certain conditions. They had to earn less than £31.50 a year and prove they had worked hard for most of their lives. They also had to have lived in the UK for at least 20 years. People who had been to prison in the last 10 years could not claim a pension. Despite these rules, by the end of 1908, nearly 600,000 pensions had been granted, helping many elderly people escape extreme poverty.

Helping Workers

In 1906, the Factory and Workshop Act 1901 was updated to include laundries, making them safer workplaces. The Labour Exchanges Act 1909 set up special offices called labour exchanges. These places helped unemployed people find work by connecting them with employers who had job openings. By 1913, these exchanges were helping about 3,000 people find jobs every day.

The Trade Boards Act 1909 was very important. It created special boards that could set minimum wages in certain industries where workers were paid very little. This law first applied to industries like chain-making and ready-made clothing, where many women worked. It later expanded to other jobs, helping to ensure fairer pay for many workers.

Other laws helped workers too. The Mines Accidents (Rescue and Aid) Act 1910 improved safety in mines, making sure there was first aid and fire safety. The Shops Act 1911 gave shop workers the right to have half a day off work each week. The Coal Mines (Minimum Wage) Act 1912 set a minimum wage for coal miners.

Health and Welfare

The National Insurance Act 1911 was a big step towards a modern welfare system. It had two main parts:

  • Health Insurance: This part provided compulsory health insurance for workers earning less than £160 a year. Workers, employers, and the government all paid a small amount into a fund. In return, workers received sickness benefit (money if they were too ill to work), free medical treatment from a doctor, and maternity benefit for new mothers. About 13 million workers were covered by this scheme.
  • Unemployment Insurance: This part gave workers the right to unemployment pay for a limited time if they lost their jobs. This scheme was also funded by contributions from workers, employers, and the government. It covered workers in industries like shipbuilding, which often had ups and downs in employment.

While these schemes didn't cover everyone, they greatly helped many British people. They made the nation healthier and helped workers get used to receiving medical care. Doctors also benefited from a more stable income. Many historians believe this act paved the way for the creation of the National Health Service (NHS) much later.

The Housing and Town Planning Act 1909 made it easier for local authorities to borrow money to build new houses for working-class families. It also gave them powers to plan towns better, helping to prevent overcrowding in new areas.

Helping Farmers

The Agricultural Holdings Act 1906 allowed farmers more freedom to manage their land without too much interference from landlords. The Small Holdings and Allotments Acts of 1907 and 1908 made it easier for county councils to buy agricultural land and lease it out as small farms. This helped more people become small farmers.

The People's Budget (1909)

The Liberal reforms needed money, and David Lloyd George came up with a plan called the "People's Budget" in 1909. This budget aimed to tax wealthy people more to pay for the new welfare programs.

However, the House of Lords, which was mostly made up of wealthy landowners and Conservatives, strongly opposed this budget. They voted it down, which was very unusual and caused a big political crisis. The Liberals argued that the Lords were blocking the will of the people.

This led to two general elections in 1910. The Liberals, with support from the Labour and Irish nationalist MPs, eventually got the budget passed. But the conflict also led to the Parliament Act 1911. This law greatly reduced the power of the House of Lords, meaning they could no longer block money bills and could only delay other laws for a limited time. This was a huge change in British politics.

What Were the Limits?

Even though the Liberal reforms were a big step forward, they had some limits:

  • Free school meals were not always provided by all councils at first.
  • Pensions were only for those over 70, and many people didn't live that long. Also, people had to prove they had worked hard and hadn't been to prison.
  • Labour exchanges sometimes only found temporary or part-time work.
  • Workers had to pay contributions for National Insurance, and the sick pay or unemployment pay was often not enough to live on for long.
  • Free medical care from the National Insurance Act only covered the wage-earner, not their family members. It also didn't cover all types of medical treatment, like dental or eye care.

Despite these limits, the reforms did help reduce poverty. The number of people relying on poor relief fell significantly between 1910 and 1914.

What People Thought at the Time

Not everyone liked the Liberal reforms. Some people, especially those who believed strongly in free markets, thought the government was getting too involved and interfering with how things should naturally work. They worried it was too much like socialism.

Some workers also didn't like having to pay 4 pence a week for National Insurance. They sometimes chanted "Taffy was a Welshman, Taffy was a thief" at Lloyd George, who was Welsh, suggesting he was taking their money. But Lloyd George famously replied with "Nine pence for four pence," meaning that for every 4 pence workers paid, they got 9 pence worth of benefits because employers and the government also contributed.

Key Laws Passed

Here are some of the important laws passed during this time:

  • Trade Disputes Act 1906 – Protected trade unions from certain lawsuits.
  • Workmen's Compensation Act 1906 – Gave workers money if they were injured at work.
  • Education (Provision of Meals) Act 1906 – Allowed for free school meals.
  • Education (Administrative Provisions) Act 1907 – Started school medical inspections.
  • Coal Mines Regulation Act 1908 – Limited miners' workdays to 8 hours.
  • Children and Young Persons Act 1908 (Children's Charter) – Protected children and set up juvenile courts.
  • Old Age Pensions Act 1908 – Introduced pensions for the elderly.
  • Labour Exchanges Act 1909 – Set up offices to help unemployed people find jobs.
  • Trade Boards Act 1909 – Set minimum wages in certain low-paying industries.
  • Housing and Town Planning Act 1909 – Helped build better housing and plan towns.
  • National Insurance Act 1911 – Introduced health and unemployment insurance.
  • Shops Act 1911 – Gave shop workers a half-day off each week.
  • Coal Mines (Minimum Wage) Act 1912 – Set a minimum wage for coal miners.

Also, from 1911, Members of Parliament (MPs) started getting a salary of £400 a year. This made it much easier for ordinary working-class people to become MPs, as they no longer had to be wealthy to afford to be in Parliament.

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