For the study of Liberal, SDP and Issue 60 / Autumn 2008 / £7.50 Liberal Democrat history Journal of LiberalHI ST O R Y Centenary of the state pension Pat Thane The Old Age Pensions Act, 1908 Andrew Connell ‘The Strange Case of Mr Rigg’ Liberal victor in North Westmorland Report The Lib-Lab Pact David Steel, Tom McNally, Michael Steed ‘Why I Am A Liberal’ Kenneth O. Morgan The dynastic Liberalism of Michael and all the Foots Duncan Brack Campbell as Leader Interview with Menzies Campbell Liberal Democrat History Group 2 Journal of Liberal History 60 Autumn 2008 Journal of Liberal History Issue 60: Autumn 2008 The Journal of Liberal History is published quarterly by the Liberal Democrat History Group. ISSN 1479-9642 The Old Age Pensions Act, 1908 4 Editor: Duncan Brack Pat Thane analyses the introduction and implementation of the first state Deputy Editor: Tom Kiehl pensions, brought in one hundred years ago. Biographies Editor: Robert Ingham Reviews Editor: Dr Eugenio Biagini Contributing Editors: Graham Lippiatt, Tony Little, Letters to the Editor 13 York Membery Pensions and the working class (Martin Pugh); Hastings facts (Patrick Jackson and Paul Hunt); The Master of Elibank (Sandy Waugh); Liberal thinkers (Barry Patrons Stocker) Dr Eugenio Biagini; Professor Michael Freeden; Professor John Vincent ‘The Strange Case of Mr Rigg’ 14 The surprise Liberal victor in North Westmorland in the 1900 election proved to Editorial Board be something of a surprise himself; by Andrew Connell Dr Malcolm Baines; Dr Roy Douglas; Dr Barry Doyle; Dr David Dutton; Professor David Gowland; Dr Richard Grayson; Dr Michael Hart; Peter Hellyer; Ian Hunter; Dr Report: Working with others – the Lib-Lab Pact 23 J. Graham Jones; Tony Little; Professor Ian Machin; Dr With David Steel, Tom McNally and Michael Steed; report by Graham Lippiatt Mark Pack; Dr Ian Packer; Dr John Powell; Ed Randall; Jaime Reynolds; Dr Andrew Russell; Iain Sharpe ‘Why I Am A Liberal’ 28 The dynastic Liberalism of Michael and all the Foots; by Kenneth O. Morgan Editorial/Correspondence Contributions to the Journal – letters, articles, and book reviews – are invited. The Journal is a refereed Campbell as Leader 38 publication; all articles submitted will be reviewed. Duncan Brack interviews Menzies Campbell, Leader of the Liberal Democrats Contributions should be sent to: 2006–07, about his political career. Duncan Brack (Editor) 38 Salford Road, London SW2 4BQ Reviews 45 email: [email protected] Campbell, My Autobiography, reviewed by Duncan Brack; Morgan, Michael Foot, All articles copyright © Journal of Liberal History. A Life, reviewed by Bill Rodgers; Reeves, John Stuart Mill, Victorian Firebrand, reviewed by Eugenio Biagini; Brack, Grayson & Howarth (eds.), Reinventing the Advertisements State: Social Liberalism for the 21st Century, reviewed by Neil Stockley Full page £100; half page £60; quarter page £35. Discounts available for repeat ads or offers to readers (e.g. discounted book prices). To place ads, please contact the Editor. Subscriptions/Membership An annual subscription to the Journal of Liberal History costs £20.00 (£12.50 unwaged rate). This includes membership of the History Group unless you inform us otherwise. The institutional rate is £50.00, including online access (see below). Non-UK subscribers should add £5.00. Online subscriptions cost £40.00 (individuals) or £50.00 (institutions). As well as printed copies, online subscribers will be able to access online copies of current and all past Journals. Cheques (payable to ‘Liberal Democrat History Cover picture: Group’) should be sent to: Lloyd George being greeted by pensioners after the introduction of the old age Patrick Mitchell pension. 6 Palfrey Place, London SW8 1PA; email: [email protected] Payment is also possible via our website, Liberal Democrat History Group www.liberalhistory.org.uk. The Liberal Democrat History Group promotes the discussion and research of topics relating to the histories of the Liberal Democrats, Liberal Party, and SDP, and of Liberalism. The Cover design concept: Lynne Featherstone Group organises discussion meetings and produces the Journal of Liberal History and other Published by the Liberal Democrat History Group, c/o occasional publications. 38 Salford Road, London SW2 4BQ For more information, including historical commentaries, details of publications, back issues Printed by Kall-Kwik, of the Journal, and archive and other research sources, see our website at: 18 Colville Road, London W3 8BL www.liberalhistory.org.uk. September 2008 Chair: Tony Little Honorary President: Lord Wallace of Saltaire Journal of Liberal History 60 Autumn 2008 3 THE Old AGE PENSioNS Act, 1908 A hundred years ago this year, H. H. Asquith’s Liberal government legislated to introduce state pensions. The Old Age Pensions Act, 1908, has rightly been seen as one of the foundation-stones of the modern British welfare state. It was just one of a series of remarkably enduring institutions initiated by the post-1906 Liberal governments, which created a decisive break between the deterrent and stigmatising Poor Law principles of state social welfare ld age pensions twenty-one should be compelled were continu- to contribute in order to provide and serious attempts ously debated in old age pensions for the lower- at more humane and Britain from 1878. paid.2 They were first Blackley had spent twenty- positive forms of Oplaced on the political agenda three years in rural parishes in by Canon William Blackley,1 southern England and discovered provision. Pat Thane who proposed, in an article in the extent of poverty in old age. examines the story of Nineteenth Century, that every- He noted that Friendly Societies, the 1908 Act. one aged between eighteen and the voluntary mutual savings 4 Journal of Liberal History 60 Autumn 2008 THE Old AGE PENSioNS Act, 1908 institutions, which supported Committee on National Provi- give rise to international debate most skilled urban workers in dent Insurance in 1885–87. and, in Britain, a succession of sickness and old age, provided This made clear that very many further official investigations less assistance in the countryside. younger people, especially which offered more evidence For this he blamed the financial women, did not earn enough of the scale of the problem. In instability of the societies. In to save, and also that prevailing 1889 Bismarck introduced in reality the greater problem was interest rates were unlikely to Germany the first-ever state the difficulty of low-paid rural yield the level of benefits Black- pensions. Blackley was con- workers and their wives afford- ley had envisaged, even when he vinced that he had inspired this ing the required regular con- cut back his proposals to include innovation, though there is no tributions. Blackley believed, pensions only. But evidence to evidence to support this. Bis- however, that the one stage of the Select Committee made marck’s scheme formed part of life at which all workers could clear that the problem of poverty a pioneering contributory social save was when they were young, in old age was real. The only insurance system which the Ger- in their first years of work before publicly funded ‘welfare’ avail- man government had initiated in they faced the costs of marriage able was the long-established 1884. In return for regular con- and parenthood. He also felt that Poor Law, which was structured tributions, workers were entitled young workers wasted money to stigmatise and deter appli- to a pension at age seventy, or that they should be encouraged cants. Those most likely to be sooner if they became incapaci- to save, citing ‘instances as I can deterred were those who had tated for work. The weakness of give from my personal knowl- led respectable, hard-working the system was that it covered edge, of young labourers by lives, avoiding the shame of poor only regularly and better-paid, the dozen, without a change of relief, but never earning enough mainly male, industrial work- decent clothes, continually and to save for old age. Most of them ers, thus excluding many of brutally drinking, living almost were women, who earned least those at greatest risk of poverty like savages while earning fully during working life but lived in old age: women and low-paid £1 a week’3. He proposed that longer than men. The Poor casual and agricultural work- all young people should contrib- Law insisted that children had ers. Bismarck was concerned to ute a maximum of £10 which an obligation to support their win the electoral support of the would accumulate in a savings ageing parents – but, at a time male trade unionists in the bet- fund, controlled and invested of high infant mortality, many ter-paid trades and to stimulate by the state. This would deliver older people had no surviving economic growth by increasing to all ‘wage-earners’ (as distinct children. Or they might have the security of workers in devel- from wage-payers and leisured migrated far away (perhaps to oping industries.5 In Britain, by and salary earners, who would Canada or Australia) in search contrast, the debate about pen- contribute but not benefit), a of security; or they might them- sions focused upon how best to weekly sickness payment until selves be too poor to help. There support the very poor, who had age seventy, and four shillings is every sign that close relatives fewest opportunities to save dur- per week pension thereafter. did help older people when they ing their working life. The type This elegantly logical pro- could.4 Left: one of the of better-paid worker who ben- posal was widely debated and The issue of aged poverty was original old age efited from the German scheme then investigated by a Select prominent enough at this time to pension books.