Absolutely loved this. My notes are too long for goodreads(!) here’s the first section of them...
Introduction:
‘One theme which repeatedly emerges is the law of unintended consequences: that decisions taken for the best of motives will often go awry.’
Beveridge’s conversion to means testing started by knowing that otherwise families with lots of children would be better off not working. - interesting how not much changes over time
The 1834 poor law came at a time when poverty was seen as something to be punished. That meant Poor Relief had ‘no intent to preven poverty, only to avert starvation.’
I’m the 30s local authorities were responsible for unemployment benefits. This was then moved to national gov, which ensured a much more consistent offer but meant local gov stopped caring much about the unemployed - because they no longer had a direct financial responsibility.
The Beveridge report went down very well with the media and public. Very favourable public opinion polling, even among those who didn’t think they would gain anything from the measures.
Beveridge’s report recognised the value ofwomen’s non-work contribution to the home, a first, but still created a benefits system that assumed dependence on the husband’s income and didn’t account for women who work or single parenthood. This was in keeping with the WW2 times, but changed rapidly after - lots of illegitimate children, a rapid rise in divorce and many women staying in the workplace after the war ended
Many of beveridge’s ideas that weren’t implemented, eg no unconditional benefits for the young, have been tried or implemented since. Beveridge’s idea in this case was that young people go straight into training if unemployed. High employment rates in 40s and 50s meant it was deemed unnecessary.
The plan contained a strange mix of socialism (universality) and conservatism (only in return for clear cut duties), but this was ultimately the reason for its success - something for everyone
1942-1951
Education: early 30s saw quite strong anti-public school sentiment, eg ‘it is hard to resist the argument that a state that draws its leaders from a class so limited as this is not a democracy, but a pluto-democracy’
The education bill was the only element that passed before the Tories lost the election. It made education up to 15 mandatory and made it free. It’s also the bill that brought in free school meals and free school milk.
See page 87 for some of the most patronising description of pupils’ ‘ability to learn’ and therefore the need for selection between secondary moderns and grammar schools
‘Plenty of private education exists elsewhere in Europe, but it is often chosen for religious and cultural reasons, not for the class and opportunity-based divisions that have so marked Britain’s particular version of the public/private split’
Health: ‘wartime proved that a national health service could be run.’
An emergency medical service was created in fear of the Blitz, which wasn’t universally available but covered war casualties, child evacuees, firemen etc
There were local authority health services, eg GP, which combined private insurance with a ‘panel’ doctor - pay per treatment. This meant the surgeries were concentrated in wealthier areas.
The BMA described Bevan’s plan to give GPs salaries doled out by gov as dictatorial, giving him ‘enormous powers to direct’ the medics. There were comparisons to hitler, eg being termed the ‘medical Fuhrer’ and ‘the greatest seizure of property since Henry VIII confiscates the monasteries’
This chapter is proof that the BMA have always been dickheads
Health and social security: because the tories voted against the NHS bill (including at third reading), the public became suspicious of their ability to be a guardian of the welfare state - something that’s stayed with them over the years. A lot of their reasoning for going strongly against the bill was politics - Bevan was also in charge of housing, which was ‘in deep trouble’. Tories wanted to tar the nhs with the same brush by marking Bevan as incompetent.
Housing: this sat under the Ministry of Health. By not having everything in one department, up to 10 departments had a role eg in materials, works, labour etc. Very difficult to coordinate
Bevan places major emphasis on both quality and mix. On quality: he was under immense pressure to build fast and build lots. Bevan saw the need to build well - quality in balance with quantity (or at the expense of). The effect of the higher quality can be seen today - by comparison with later builds that repeatedly reduced quality standards. On mix: he was adamant that housing should not just be built for the working classes and was keen to avoid ghettos / class distinctions by housing. Similarly, he didn’t want old people to be clumped together in one housing district.
The conservatives lost the 1945 election so thoroughly that some advocated a change in name of the party or the intro of proportional representation as a route back to power
In the 40s and early 50s there was a large degree of consensus about the welfare state between conservative and labour. The differences between the parties led to an ‘oscillation around the mean’ rather than a pulling to either extreme. It’d be the late 70s and early 80s before the differences in aim became stark.
Legal aid started in 1950 as a pretty tiny part of the welfare state, but covered 80% of the population.
1951-73
Britain’s prosperity and economy grew after the war. But by the mid-50s it was clear that other European countries’ economies were growing at twice the rate. While other countries upgraded their infrastructure and industries, the uk fell behind.
When Macmillan was in charge of housing, the pressure to hit 300,000 homes meant quality and size suffered. Rent controls since the 30s meant that rent could vary by 2.5 times for properties on the same street. This was seen as a barrier to landlords carrying out repairs and meant many properties quickly became slums. A ‘repairs increase’ was allowed in the prs where a landlord could show they had put homes into good repair in past 3 years. This turned out to be too small to have much effect.
The new materials used on high rises were popular at the time of building, but soon proved inadequate. The buildings became rundown quickly and social housing was associated with these blocks.
The idea for housing associations came from Scandinavia and the first trial was in 63. By the 90s it was commonplace.
Education: the early 60s saw a major increase in number of units, in part because of baby boomers coming of age and in part because of more money now Korean War was over. The decision to introduce uni grants (60s) was based on knowledge that 90% of uni students got some sort of assistance from uni, LA or charity. Therefore it was viewed as standardising existing practice.
Health: the ministry of health (which had been rid of housing and local gov) didn’t even have a cabinet seat until 1968. Paying consultants more money (after a pay dispute) meant more even coverage across uk and fewer resorting to private practice. But it had a knock on effect on GPS, which became an undesirable profession. In 1963 there was the threat of mass GP walk out, leading to 33% pay rise and new contract. Very exnpensive, but did tether GPS to the nhs forevermore.
Social security: early pensions were intrusive and inconsistent - relying on claimants telling officers they were in need (eg showing their worn out clothes). This became increasingly unappealing when those around them were getting richer - easier straight after the war when friends/family were in similar position. A third didn’t even claim by the 60s. Labour promised an income guarantee (no means-test).
In the 60s, labour were vehemently anti-PRS. There was support for mortgages and council trenants, but a refusal to do the same on prs because it would benefit prs landlords - even thoug prs tenants were the poorest in society. Many wanted the prs to disappear. However there was a shift to promoting ownership and seeeing council homes as for the most needy. In 1970 Britain reached 50% home ownership for the first time.
In late 60s the debate shifted from quantity to quality - the number being built was predicted to outnumber households by 73. Furthermore, a gas explosion at a council high rise left 5 dead and epitomised the slum high rise associated with council property. High rises began to be demolished wish increasing frequency. Minimum size requirements were set up, but these became max sizes in council building and the Bevan era sizing was never returned to. Partly this was due to not enough money being put in and partly due to housing being more political than in late 40s, when only numbers mattered. The type of housing built now had social consequences - eg gentrifying, helping immigrants, helping long term working class.
Education: the first evidence that you can coach for an IQ test came in 1952. Why do we still use them???? Th polytechnics were meant to offer technical (science /vocational) degrees, as the old unis mostly offered art degrees, which Britain needed less of. But because the schools produced students fit largely for art degrees (and this is what they applied for) the polytechs mostly took on the role of offering second rate arts courses for those who didn’t get into the unis.
For a while post-WW2, people thought poverty had been basically eliminated (both Tory and labour). This was based on an absolute poverty level that didn’t take account of changes in living standards. Research also ‘discovered’ in work poverty and the number of children In poverty. These led ultimately to tax credits and child benefit
The late 60s saw greater financial difficulty and with it the first genuine questioning of the welfare state since 45. People didn’t like their taxes going up to pay for services. Emphasis on selectivity over universality grew, in labour and Tory camps.
Frank Field worked at CPAG before becoming a labour MP and his report saying labour had made the poor poorer probably played a part in labour’s 69 loss.
The Tory 69 manifesto contained no references to a reduction in the welfare state, though there were some references to decreasing tax. On individual elements of the welfare state their manifesto talked on retaining current standards.
In early 70s employment levels were diminished (reaching 1 million in 71). This was happening increasingly at the peak of each economic cycle, undermining a key condition of the affordable and effective welfare state of full employment.
Keynesian economics reigned supreme from 45 to 75. It was based on the idea that you could spend your way out of recession and increase employment by cutting taxes and boosting spending. But Callaghan denounced it, saying it resulted in cycles of inflation followed by higher unemployment. Instead he was finding that the higher taxation and inflation might not always bring full employment and growth. He shifted from deficit spending. This was the ‘first great fissure’ in the welfare state.
Health: in the immediate post-war period, the most junior doctors in some hospitals were only entitled to Christmas Day off. Even in 65, they worked 102 hours a week before any extra duty allowance or overtime kicked in. And many worked longer hours.
It was in Castle’s time that calculations of the money needed to ‘stand still’ were produced and helped protect nhs budgets with approx 2% increases. This was ended by Jenkins (Tory) in early 80s to cut costs - which meant the nhs couldn’t prove whether it had spent its money efficiently. This became a political problem, but it turned out that civil setvants had luckily kept some of the measures/metrics on the sly.
When thatcher was in opposition, rolling back the welfare state was a point of principle, but there were few tAngible policy asks except selling council homes. Other policy areAs took priority. This resulted in her being one of few politicians to be more radical in power than in opposition.
Right to buy was actually Heath’s idea, which thatcher opposed, saying it went against ‘our people’ who worked hard to pay off mortgages. There was an even more radical proposal in 75 by a cabinet member, which Thatcher shot down, to transfer ownership as soon as construction costs had been paid off. The aim of r2b was increase independence from the state throug rising ownership. Council tenants got 33% off their property after 3 years, rising by 1% each year up to 50% after 20 years. In conjunction, rents were increased to encourage sales and public house building slowed - this went unmentioned in the manifesto. Labour also considered council sales to spread wealth - but didnt act on it.
From thatcher’s victory in 79, labour entered a decade of not thinking constructively about the welfare state, mostly due to infighting.
79-92: Tory years. ‘Welfare state under fire’
A report in 77 on health inequalities was the first of its kind, pretty much globally. Tories tried to bury it and spent a decade denying health had anything to do with socio economic conditions - it conflicted with their belief in trickle down effects
Labour decided to oppose the r2b policy on the basis of reductions to the quality and quantity of the housing stock. Some argued they should support sales but insist on a continued building programme - which the tories were massacring.
A cabinet paper in 82 looked at options for reducing public spending, which inevitably looked like an attack on the welfare state. One option was replacing the nhs with insurance - it’s no wonder the tories are associated with dismantling the welfare state.
John Redwood ran the newish Number 10 policy unit under Thatcher’s second term, and was the author of much thatcher welfare state policy
The introduction of housing benefit in 1983 came amidst calls to cut costs but a ministerial desire not to have too many ‘losers’ from the new scheme. This meant, rather than a unified new system being introduced, HB was added on top of existing supplementary benefits. There weren’t enough staff to manage it, the computers weren’t set up properly and it led to the biggest admin fiasco the welfare state had experienced - evictions, disturbances, welfare centres closing their doors to major queues. None of the ministers seemed to understand the new scheme
The benefits system had lots of one off payments eg for cookers and beds. About half of people weren’t aware these options existed, and the other half used it extensively - encouraged by local authorities (especially labour ones unsympathetic to a thatcher govt) and welfare advisers. Social security was one of the few areas of welfare that central gov has major control - they might have to pass a law, but other than that their word became action. Health, education and social services were much harder to get action.
The review from No10 policy unit was less individual and therefore easier to administer. It also sought to remove the poverty trap by ensuring that taking on more work always meant more money, even once taxed. However, in order to prevent major rises in costs, this was combined with a much more severe tapering of housing benefit. Essentially this meant a shallower but wider poverty trap.
The most controversial change was introduction of the Social Fund to replace one-off payments for cookers, beds etc with interest-free loans that were cash-limited by local office - meaning they could and did run out of funds.
A ‘boomerang offer’ is an offer to the treasury to make a cut, which subsequently has to be reversed because the political cost is too high
Health: when the nhs was first created, the BMA was sceptical and pro-private practice, reflecting the view of its doctors who were used to working privately. As a new generation of doctors, protective of the nhs, came in, the BMA changed its stance. In terms of timing, this meant BMA stopped promoting privatisation just as a govt pro-privatisation came into power.
In Thatccher’s third term the rise of housing assocs began. They were required to introduce private finance to augment public funds. The result of this was higher rents. This meant that, increasingly, ‘welfare ghettos’ were created: because only those whose housing benefit covered all their rent could afford to pay, plus LAs increasingly used HAs to house the homeless. This repeated the 60s ‘sink estates’ grouping of vulnerable people.
1987 saw the introduction of the national curriculum - taking uk from one of the only industrialised countries without one to a country with one of the most detailed and prescriptive curriculum
John Moore took over DHSS, just as it split into DH and DSS - with him keeping social security. He introduced conditionality for 16 and 17 year olds to prevent them moving straight from school to dole. All young people had to undertake training in order to get benefits. In practice this was a disaster - the construct ignored children who’d left abusive homes, been discharged from care, whom gov couldn’t provide a training place for, people who were sacked.
Thatcher’s third term was when the Thatcherite approach to services really developed. This involved provider/purchaser splits between private/piblic - and versions of this could be seen across nhs, social care, education etc.
It was 1991 before the government accepted there’s a link between poverty and ill-health.
Labour really struggled while in opposition, with little fresh thinking. For a while it was stuck in 1970s thought, opposing cuts and anti-privatisation but not much nuance. Research came out showing that most public expenditure on social services benefits the better off more, with middle classes exploiting the welfare state more effectively. The right liked these findings as proof of the need to ‘wean’ those not genuinely in need off welfare. Those on the left liked it as proof of more radical redistributive measures being needed. Those in the middle stagnated.
Thatcher was based on trickle down economics: the richest lead the way, eg by buying luxury goods that eventually improve the minimum standard experienced by all. If you strive for equality the whole country stagnates and progress would never come. But in practice that didn’t happen: the bottom 10% got poorer through thatcher era, with inequality growing faster than any comparable western country. The extremes were further apart than any time since the war. This was not all down to gov policy or welfare policy, globalisation played a big part. ‘While salaries at the top of the earnings range had exploded, those at the bottom had fallen as the rewards for brain increased and those for brawn fell.’
In the 90s there was an internTional shift on welfare to conditionality with support, from lots of training through to job interview guarantees. Evidence shows the latter works better. This formed a big part of new labour’s approach to welfare. The concept of welfare as a springboard rather than a safety net stole lots of Tory language.
Back in 1996 there was discussion of how to prevent the ‘scandal’ of people losing their life savings/homes to fund long-term care. Blair obfuscated pre-election to avoid tricky questions, promising a royal commission instead. - an example of how effective it can be to kick tricky policy issues into the long grass...
The NHS Direct was originally called ‘888’ by civil servants.
Blair won with the largest majority ever (178) but also got the lowest turnout since 1935.
Making the Bank of England freed up the treasury to spend much less time on macro-economics - much of this now ran on autopilot - and much more on domestic policy, notably tax and benefit changes. It also meant the chancellor had significantly more domestic policy power.