Welfare State ⇦ WW2

.How WW2 Created a Welfare State - WW2 Homefront > .

In predicament due to the extreme situation of war, people are in dire need for a working system of social security. Therefore, Beveridge is instructed by the British government to draw up a report on the state of the country´s insurance schemes. But in his opinion, a war is no time for patching up a collapsing system – and he is ready to make some waves.

The Beveridge Report, officially entitled Social Insurance and Allied Services (Cmd. 6404), is a government report, published in November 1942, influential in the founding of the welfare state in the United Kingdom. It was drafted by the Liberal economist William Beveridge, who proposed widespread reforms to the system of social welfare to address what he identified as "five giants on the road of reconstruction": "Want… Disease, Ignorance, Squalor and Idleness". Published in the midst of World War II, the report promised rewards for everyone's sacrifices. Overwhelmingly popular with the public, it formed the basis for the post-war reforms known as the Welfare State, which include the expansion of National Insurance and the creation of the National Health Service.

The Report offered three guiding principles to its recommendations:

1. Proposals for the future should not be limited by "sectional interests". A "revolutionary moment in the world's history is a time for revolutions, not for patching".
2. Social insurance is only one part of a "comprehensive policy of social progress". The five giants on the road to reconstruction were Want, Disease, Ignorance, Squalor and Idleness.
3. Policies of social security "must be achieved by co-operation between the State and the individual", with the state securing the service and contributions. The state "should not stifle incentive, opportunity, responsibility; in establishing a national minimum, it should leave room and encouragement for voluntary action by each individual to provide more than that minimum for himself and his family".

Beveridge was opposed to "means-tested" benefits. His proposal was for a flat rate universal contribution in exchange for a flat rate universal benefit. Means-testing was intended to play a tiny part because it created high marginal tax rates for the poor (the "poverty trap").

The Labour Party eventually also adopted the Beveridge proposals, and after their victory in the 1945 general election, they proceeded to implement many social policies, which became known as the Welfare State. These included the Family Allowances Act 1945, National Insurance (Industrial Injuries) Acts 1946 and 1948, National Insurance Acts 1946 and 1949, National Health Service Act 1946, Pensions (Increase) Act 1947, Landlord and Tenant (Rent Control) Act 1949.