Founding the welfare state least accountability) it became Fringe meeting, 14 September 2008, with Ian Packer and possible for Liberals to imagine Joe Harris; Chair: Lady Jane Bonham Carter it as a liberating influence. Lib- eral thinkers, most famously L. Report by Graham Lippiatt T. Hobhouse and J. A. Hobson, started to promote the ‘New Liberalism’, with social reform hundred years ago, in accrue more credit for the pol- added to the list of traditional 1908, the Liberal govern- icy than he was entitled to. Liberal demands, like democ- Ament of Herbert Henry Dr Ian Packer of Lincoln racy, religious equality and Asquith introduced the Old Age University (author of Liberal Irish home rule. They painstak- Pensions Bill. This was just the Government and Politics, 1905–15) ingly demonstrated that social beginning of a comprehensive delivered a broad overview of reform was merely an extension Liberal programme of social the social welfare legislation of existing Liberal precepts, reform including national insur- enacted by Asquith’s govern- entirely compatible with Liberal ance, minimum wages, labour ment between 1908 and 1914, ideas and language. Moreover exchanges and compulsory and its significance in the Liberals were starting to think school meals, amongst much administration’s programme. about ways in which rising else. Was this programme evi- Social reform as an agenda for government expenditure might dence that nineteenth-century central government was the be paid for. Their determina- notions of the minimal state outcome of the breakdown of tion to preserve free trade ruled had finally been abandoned, the mid-Victorian idea of the out the Tory solution of taxes or was it an attempt to counter minimal state, embodied in the on imports. This left the party the challenge of the emerging concepts of low taxation and with no option but to defend Labour movement? the least possible government increases in direct taxation, Lady Jane Bonham Carter interference in society and the especially on the very wealthy, introduced the meeting with economy. In the 1880s and 1890s as the fairest way to raise rev- a plea for the role of Prime the dominance of this idea was enue – a policy first seen in Sir Minister H. H. Asquith (her increasingly challenged as it William Harcourt’s budget of great-grandfather) to be given became clear that the minimal 1894, which consolidated and its proper recognition by his- state could not solve a wide graduated death duties. tory. The Old Age Pensions range of problems, including However, while increased Act of 1908 had become linked an economy that was falling direct taxes might provide the in the popular mind with the behind major international Many means to pay for social reform, work and personality of David competitors, the spiralling cost the abstract arguments of think- Lloyd George; it was enacted of national defence and the per- nineteenth- ers like Hobhouse and Hob- soon after Lloyd George became sistence of poverty in what was, century son did not commit a Liberal Chancellor of the Exchequer comparatively, a very wealthy government to any particular and has been widely seen as society. Tories turned to impe- Liberals had course of action and did not a prelude to the other social rialism and taxes on imports determine the form or timing reforms heralded in and paid to promote economic growth. been hostile of legislation in 1905–14. In fact for by Lloyd George’s People’s The Labour and socialist move- there were three distinct waves Budget of 1909. Indeed, a col- ments argued for measures like to the state of Cabinet initiatives on social loquial term for being in receipt the eight-hour day as solutions because they reform in this period, the first of the pension was ‘being on to unemployment and poverty. of which was largely a response the Lloyd George’. As Bonham The trend towards collectivism saw it as to the political agenda that had Carter reminded the meeting, was reflected in many areas of built up in the previous decade however, it was Asquith who, thought, including sociology, controlled of Tory government. Its centre- as Chancellor in 1906–08, had philosophy and theology, so piece was undoubtedly the Old been the driving force behind it was unsurprising that it also by a nar- Age Pensions Act of 1908. There the championing of pensions by became a feature of Liberalism. row clique had been discussion around the the Liberal government and it Many nineteenth-century feasibility of a scheme of state was Asquith who, although by Liberals had been hostile to who acted pensions since the 1870s, but, now Prime Minister, piloted the state because they saw it as ironically, pensions had become the 1908 budget, in which pen- controlled by a narrow clique in their own a front-rank political issue only sions were introduced, through who acted in their own and not when Joseph Chamberlain had the House of Commons. Lloyd the wider public interest. But as and not the taken them up during the 1895 George handled the separate the extension of the franchise wider public general election on behalf of the legislation on pensions later in brought the state increasingly Tories; and the Liberal govern- 1908 and, as a result, began to under popular control (or at interest. ment’s pensions legislation was

40 Journal of Liberal History 61 Winter 2008–09 reports at least partly a rebuff to the What was legislation was more limited: it Churchill. The key to their ideas Tories for not introducing pen- was either non-controversial, was National Insurance. Lloyd sions during their term of office. crucial about like the provision of school George’s experience of piloting Pensions, though, were prob- the Pensions meals, which had passed the the pensions legislation through ably not a response to Liberals’ Commons in 1905 in the last the Commons had convinced fears about the appearance of Act was its year of the Unionist govern- him that social reform made the the Labour Party, which won 29 ment; or it was the result of party popular and stimulated his seats in 1906. Labour fought that introduction pressure group activity such as interest in schemes to provide election largely in alliance with the extended 1906 Workmen’s sickness benefits for widows and the Liberals and the party was of impor- Compensation Act, a concession orphans. Lloyd George was also already in favour of pensions, tant new to lobbying from the TUC, the convinced that future schemes an idea endorsed by 59 per cent maximum eight-hour day for could not be financed out of of Liberal candidates in 1906. principles in miners in 1908, prized by the general taxation alone. National Asquith had promoted the idea coal miners’ unions, then still a Insurance was devised by the of pensions well before Labour welfare leg- powerful force within the Lib- Welshman and his eclectic group won two by-elections from the eral Party, and the Trade Boards of advisers as a way of spread- Liberals in 1907 at Jarrow and islation, prin- Act of 1909, which set mini- ing the cost between the state, Colne Valley, so fear of Labour ciples the mum wages in four areas of, employers and employees. Under does not seem to have been a mainly female, home-working, what became the National Insur- significant factor in the genesis Liberals were which was the outcome of vig- ance Act of 1911 everyone in of pensions. What was crucial orous lobbying by the National work earning under £160 pa about the Pensions Act was its to develop Anti-Sweating League. This was compulsorily enrolled in a introduction of important new certainly did not amount to state scheme, in which they paid principles in welfare legislation, further – a coordinated programme, 4d a week, their employers 3d a principles the Liberals were to particularly though it did establish some week and the state 2d a week, in develop further – particularly important, if limited, prec- return for the right to sickness the idea that welfare provision the idea that edents – especially in the case benefit. This ingenious scheme should be separated from the of the Trade Boards Act, which made use of the insurance prin- Poor Law and given to recipi- welfare pro- created Britain’s first modern ciple that was already familiar ents as a right, rather than the regulation of wages. to millions of people and of the humiliating and grudging relief vision should At the elections of January expertise of existing friendly given to paupers. be separated and December 1910, pensions societies who would administer It was the perceived popular- were the only social policy hav- it. In some ways, Lloyd George ity of pensions and the advan- from the ing a prominent role, being was just extending and subsidis- tage they gave in the battle with mentioned by 75 per cent of ing existing forms of insurance the Tories that allowed Liberals Poor Law Liberal candidates in their provision. But to be successful it to regard themselves as a party election addresses. But even had to be compulsory, making particularly associated with and given to they were outstripped by other it a massive advance in the state’s social reform. This process was recipients issues. In January 1910 the fate role in welfare provision; and, as hastened once pensions became of the , free trade with pensions, it rested on rights entwined with Lloyd George’s as a right, and the 1909 Budget were all and entitlements to relief. People ‘People’s Budget’ of 1909 and mentioned more often than received benefits on the grounds the constitutional struggle rather than pensions by Liberal candidates; that they were part of, and had between the Lords and Com- in December 1910 these issues contributed to, an insurance mons which followed when the the humili- were joined by defence and scheme. Lords rejected the Budget. For ating and Irish home rule. So, while social The party accepted the many Liberals, social reform reform was an important com- legislation of 1911 willingly, became inextricably linked grudging ponent of Edwardian Liberal- hoping for another triumph with other items in the party’s ism, it was only one. on the lines of old age pen- agenda, especially graduated relief given In 1908, a second wave of sions. The only real opposition direct taxation and the achieve- initiatives began to take shape, to the legislation came from ment of democracy. However, to paupers. carrying the administration interest groups like the BMA while pensions were not alone much further. Whilst the ear- who feared that their position among the Liberals’ achieve- lier reforms stemmed from would be affected. However, ments in the field of social long-standing issues and were while National Insurance was reform in 1906–08, they were handled by a variety of minis- undoubtedly a parliamentary by far the most eminent and the ters, the new departures of 1908 triumph for Lloyd George, and a only measure that captured the represented a fresh agenda and milestone in welfare provision, imagination of the party or sus- were largely the work of two it failed to repeat the politi- tained public attention. Other ministers – Lloyd George and cal success of pensions, being

Journal of Liberal History 61 Winter 2008–09 41 reports overshadowed by the crisis over The achieve- wage for agricultural labourers, intention was that these ideas the reform of the Lords. Once it arguing that low rural wages would form the centrepiece of came into operation in 1912–13 ments of the depressed earnings in the towns. the government’s manifesto it became clear that many peo- Edwardian This rather crude analysis was when the next general election ple resented paying a flat rate not a personal foible of Lloyd occurred in 1915. tax of 4d per week to belong to Liberal gov- George’s, but a reflection of a The achievements of the the National Insurance plan, widely held view in the Liberal Edwardian Liberal governments and it was blamed for the party’s ernments in Party that many industrial dif- in the field of social reform were poor performance in a series of ficulties could ultimately be truly outstanding and long-last- by-elections. Nevertheless, the the field of traced back to the unreformed ing. The concept of a centralised Liberals pressed ahead with the social reform social structure of the country- state welfare system first took second part of the scheme which side. Liberals were deeply suspi- form in 1905–14. The longer Churchill had presented to the were truly cious of the role of landowners, the Liberal government spent in Cabinet in 1909. This created a holding them responsible for power, the more committed it system of unemployment insur- outstanding rural poverty by monopolising became to social reform. More- ance for 2.5 million workers in power for their own ends. This over, its agenda on social reform trades like shipbuilding, where and long- feeling had crystallised after the underwent continuous inter- cyclical and seasonal unemploy- lasting. The mass desertion of Liberal land- nal renewal and by 1914 it was ment were common. Together owners in 1886 over Irish home more bound up than ever before with the first labour exchanges, concept of a rule and the hostile attitude of with other elements of Liberal which had been introduced in the House of Lords. ideology. But this position was 1909, unemployment insurance centralised Policies to challenge the role also fragile, depending for its was a rather belated response to of landowners became increas- success on leadership from the the unpopularity the govern- state welfare ingly popular amongst Liber- top, particularly from the com- ment had suffered in 1908 when system first als – hence their enthusiasm manding and ingenious figure a trade depression had produced when Lloyd George put land of Lloyd George. But Asquith rising levels of unemployment. took form taxation at the centre of his played a vital role in this proc- While National Insurance 1909 budget. In 1909 hostility ess too. More than anyone, it proved a lasting achievement, in 1905–14. to landowners and social reform was he who was responsible for its initial unpopularity meant had become entwined because committing the Liberal govern- that the political imperative that The longer the land taxes were one of the ment to old age pensions. And, drove the role of social reform the Liberal most high-profile elements of as Prime Minister, he supported in the government’s programme the budget that was raising the Lloyd George’s great initiatives suddenly looked much less govern- money for pensions and because of the People’s Budget, National compelling. After 1911, it was the House of Lords had rejected Insurance and land reform, entirely possible that the Liberal ment spent the budget. This helped unite uniting the cabinet behind commitment to social reform Liberals by fusing traditional these policies. If it is the enmity would have died away, as Irish in power, radicalism with the new agenda between the two men that has home rule and Welsh disestab- the more of social reform, demonstrat- been remembered for the period lishment came to dominate ing that there was no contra- after 1916, it should not be for- the parliamentary timetable. committed diction between them. Lloyd gotten that before 1914 they By 1911, too, Churchill was at George launched his own land formed a remarkable team that the Admiralty, removed from it became enquiry, headed by the social led Liberalism in the direction domestic affairs. The third investigator, Seebohm Rown- of social reform. wave of Liberal proposals in to social tree, which provided the argu- If Ian Packer reviewed the the field of social reform was reform. ments to support his idea of a Liberal position on old age pen- not, therefore, inevitable. It was minimum wage for agricultural sions from the point of view sparked by a political crisis – the labourers and extended the land of elite politics in the context national miners’ strike in favour reform agenda by producing a of party competition with the of a minimum wage in March programme of rent courts and Conservatives, Joe Harris, Gen- 1912. A compromise bill set up security of tenure in the coun- eral Secretary of the National boards in each mining district tryside and state encouragement Pensioners Convention, and to determine local minimum for urban house-building. The author of Paupers’ Progress: From wages, representing an unfore- new strategy was called the land Poor Relief to Old Age Pensions, seen extension of the principle campaign. Its rural side was preferred to approach their of the 1909 Trade Boards Act to launched in October 1913 and introduction from the perspec- a major industry. Lloyd George its urban elements were being tive of grassroots campaign- leapt on this concept and took it discussed and approved by the ing amongst working-class in a new direction, suggesting Cabinet in the months before organisations, religious and the introduction of a minimum war broke out in 1914. The charitable institutions, trade

42 Journal of Liberal History 61 Winter 2008–09 reports unions, friendly societies and The Committee was backed because of the growing bill for prominent and concerned by many well-known public the Boer War which had begun individuals. At the root of the figures, including philanthropist in 1899. crusade was the desire to relieve Edward Cadbury, labour and Although not acted upon, the social conditions experi- feminist organiser Margaret the work of the Chaplin com- enced by most older people in Bondfield, who would later mittee was important in inspir- the nineteenth century who had become Britain’s first female ing a number of proposals for to resort to Poor Law provision cabinet minister, future pensions pensions legislation over the and the to survive. minister George Barnes, Lib-Lab next few years. The committee That this state of affairs should candidate and journalist Fredrick also met again in 1903 but all be necessary in economically Maddison, and Will Crooks, the efforts to pass bills incorporat- developing, wealthy, industrial, trade unionist and ing pensions provision into law Victorian Britain disturbed the stalwart. Bernard Shaw, Cardinal between 1900 and 1908 failed. conscience of the nation. This Vaughan and the Archbishop of In December 1905 the Conserv- campaign of nationwide pres- Canterbury also declared their ative administration of Arthur sure was rewarded when the support. Mass rallies took place Balfour was replaced with the Old Age Pensions Bill, moved in Newcastle, Leeds, Manchester, Liberal administration of Sir by Asquith and (the Glasgow, Bristol and Birming- Henry Campbell-Bannerman, first working class man to hold ham. Five hundred and sixty whose government won a government office) received petitions containing 799,750 sig- landslide victory in the general Royal Assent on 1 August 1908. natories were presented to Parlia- election of the following year. It established for first time the ment by Fred Jowett, the Labour Campbell-Bannerman prom- right of the poor to a mini- MP for Bradford West. For ten As a plaque ised a pensions bill but died mum income as an alternative years, from 1898 to 1908, the four months before it became to the perceived charity of the Victorian and Edwardian con- erected at law and his name is now rarely Poor Law and the cruelty of the science was stirred and the public associated with the measure. workhouse and was truly an his- campaign for old age pensions the Brown- Asquith, however, kept his toric measure. filled halls and assembly rooms predecessor’s promise. In July There was little moral argu- across the country. ing Hall 1908, 304 Liberals, 20 Lib-Labs, ment against such provision, The first positive response Settlement 23 Labour, 23 Irish National- with ideas about public funding came from Salisbury’s adminis- ists, 43 Unionists and 1 Socialist to support the old and infirm tration, with the appointment of to celebrate voted for the first old age pen- going back several centu- a Select Committee on ‘Improv- sion bill; only 29 MPs opposed ries. Numerous government ing the Condition of the Aged that first it. The act received Royal committees had previously Deserving Poor’ in 1899 under Assent on 1 August 1908. The ‘investigated how to improve the chairmanship of Henry pension battle for the provision of old the condition of the aged and Chaplin, a Unionist who was stated, it age pensions had been won. deserving poor,’ discussing President of both the Board of Lloyd George paid out the possible systems and costs. As Agriculture and the Local Gov- was a first first pensions in January 1909 early as 1892, the reformer and ernment Board. The committee through local Post Offices; but sociologist Dr Charles Booth contained Unionists and Liber- step and the the means-tested maximum of had proposed a practical old als, including Lloyd George. five shillings weekly for the over age pension plan, while on 20 They accepted the moral case struggle for seventies, hedged with many November 1898 the Congre- to provide for those ‘whose a universal conditions, was a long way from gationalist Reverend Francis conduct and whole career has the ‘endowment of old age’ Stead, warden of the interde- been blameless, industrious and pension that Booth had envisioned and nominational Browning Settle- deserving but find themselves, for which the trade unionists, ment in Southwark, convened from no fault of their own … above the philanthropists and Christian a meeting of councillors, MPs, with nothing but the workhouse Socialists had fought. As a and trade unionists to consider or inadequate outdoor relief as official pov- plaque erected at the Browning what could be done to pres- the refuge for their declining erty level for Hall Settlement to celebrate that surise the government to intro- years’. The Chaplin commit- first pension stated, it was a first duce old age pensions along the tee reported to Parliament on all men and step and the struggle for a uni- lines already operating in New 26 July 1899 and recommended versal pension above the official Zealand. On 13 December 1898 a non-contributory scheme for women. The poverty level for all men and the National Pensions Com- the deserving poor, hedged with women. The struggle for that mittee was formed with Stead many conditions. However the struggle for continues today. and Frederick Rogers, a former Conservative government took that contin- bookbinder and trade unionist, no action. Its resistance was Graham Lippiatt is Secretary of the as joint secretaries. on the grounds of cost, mainly ues today. History Group.

Journal of Liberal History 61 Winter 2008–09 43