Social Policies of the Lloyd George Coalition 1918-1922 (British Politics 1918-1929)(Britain 1900-1951)

Following a post-war boom and a surplus in the reform budget, Lloyd George attempted to pass many social reforms to ensured that pre-war reforms had not come to an end.

However...

• The end of the post-war boom brought an end to the reform policies.
• Eric Geddes was appointed to advice the government budget when the boom ended.
• Geddes' 3 reports advised £87 million in cuts to government spending.
• Government aimed to cut £52 million - 10% of government spending.
• These cuts brought an end to many of the reforms, such as housing, a 7 hour day for miners, and the nationalisation of rails and mines.

Overall, although attempts were made to introduce many new revolutionary reforms, economic hardships and the end of the post-war boom meant the Coalitions social reforms were overall a failure.

• Desire to continue the work of the pre war years.
  • From Liberals in the Coalition.
• Concessions had to be made to the working classes.
  • Due to large scale post war disturbances.
• Post war boom.
  • Government thought reforms could be afforded.
  • Surplus in the health and unemployment insurance fund.
• A need to make the transition from war to peace.

• 1918 Maternity and Child Welfare Act
  • Aimed to improve provision for the health of mothers and young children.
  • Increased maternity benefits
  • Introduced maternal and child welfare clinics, day nurseries and health visitors.
• 1919 Old Age Pensions Act
  • Increased the 1908 benefits
• 1919 National Insurance Act
  • Compulsory health insurance extended to all those earning up to £250
  • Reduced the doctors' capitation fee
• 1920 Unemployment Act
  • Extended 1911 act to more occupations
  • Provided 15 weeks of unemployment benefits.
  • Helped over 11 million workers
• 1921 Unemployment Insurance
  • After 26 weeks of payments there would be transitional payments.
  • Kept unemployed workers from going into the workhouse.

• 1921 Unemployed Dependants' Act
  • Gave benefits to the families of unemployed workers
• 1919 Addison Housing Act
  • Local authorities build houses with low rents.
  • 70,000 a year
  • Subsidised by £260 a house.
  • 213,000 built
• 1919 Coal Mines Act
  • Guaranteed a 7 hour day for miners
• 1920 Agriculture Act
  • Guaranteed agricultural prices to help farmers, protected labourers' wages by a special board

• 1922: The economic outlook was very different.
  • Put a stop to further reforms
• April 1920: End of the post war boom
• Unemployment started to rise
  • End of 1920: 700,000 men were unemployed
  • June 1921: over 2 million unemployed
  • End of 1921- 1.9 million
• Unemployment did not fall below 1 million until WWII
• Boom cushioned the return men from war into civilian life.
• Jobs in heavy industry
• Large numbers of small businesses set up
• 17,000 small farms established

Geddes Axe Cuts: 3 reports published in February 1922

Recommended £87million in cuts to government expenditure.

• Goverment aimed to cut £52 million.
  • 10% of total spending

• Government expenditure had to be cut...
  • Falling trade and government income
  • Heavy debts from WWI
• August 1921: Lloyd George brought in wartime advisor Sir Eric Geddes.
  • To chair a committee on national expenditure.

Social policies began to unravel as a result of the Geddes Axe cuts.

• Government was anxious to reduce any financial commitments
• Housing subsidies ended
• Local authorities that had wanted to end the workhouses and the old local poor rates were liable for prosecution.
• Controlled wages for farm workers ended
• Coal miners faced longer hours
• Railways Act 1920: Ended wartime control of the railways, replaced this by grouping them into 4 large private companies.
• Mines were denationalised.

• Calls for import duties due to...
  • Fall in revenue
  • Problems faced by British industries
• Import duties had been introduced during the war by the Coalition.
  • These were kept -  more were added on. 
• To protect British industry.
  • Imports on dyes to protect chemical industry.
• Safeguarding of Industries Act 1921
  • 33% duty on some imports.
    • Optical glass, laboratory porcelain, hosiery latch needles, metallic tungsten, synthetic chemicals.
  • Not a general tariff.
  • Taxes on German imports
  • Only affected 3% of imported goods
• Government did not respond to demands for protection of British industry

• Cuts restricted house building.
  • Still a considerable shortage
• Old Workhouses and Poor Law had not been replaced by a more modern system of welfare.
• Wartime controls were lifted
  • Left the railays with problems of outdated stock and under investment.
• Coal mines returned to their owners.
  • Wage cuts due to falling coal sales.
  • Longer hours return for miners. 
• Unemployment was high
  • Seemed no strategy to deal with causes or effects
• Industrial unrest remained high

Successes:

• De-militarisation of 4 million men had been achieved successfully.
• Had been social reforms, when circumstances allowed.
• Had not seen a violent revolution
• Attempt to return to normal conditions
• Many were glad to see the end of government restructions and controls
• General consensus that government had a duty to reduce the deficit

Limitations:

• By 1922: Plans for reconstruction and reform had to be abandoned.
  • Caused by growing economic problems
• Rising unemployment
• Resentment that war had not led to a better Britain.
• Had been unrest