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CHANGES IN THE CLASS STRUCTURE. THE BRITISH WELFARE STATE

1. Changes in the Class Structure


A. Middle class and stability in Georgian society - the middle class grew rapidly in the 18th century, especially in the cities. At the top of the scale The legal profession succeeded first, establishing specialist training and associations, and was soon followed by the medical profession. The merchant class prospered with imperial trade. Wahrman (1992) argues that the new urban elites included two types: the gentlemanly capitalist, who participated in the national society, and the independent bourgeois, who was oriented toward the local community. By the 1790s a self-proclaimed middle class, with a particular sociocultural self-perception, had emerged.  

Thanks to increasing national wealth, upward mobility into the middle class, urbanisation, and civic stability, Britain was relatively calm and stable, certainly compared with the revolutions and wars which were convulsing the American colonies, France and other nations at the time. The politics of the French Revolution did not translate directly into British society to spark an equally seismic revolution, nor did the loss of the American Colonies dramatically weaken or disrupt Great Britain.

B. Victorian era - the social changes during the Victorian era were wide-ranging and fundamental, leaving their mark not only upon the United Kingdom but upon much of the world which was under Britain's influence during the 19th century. It can even be argued that these changes eclipsed the massive shifts in society during the 20th century; certainly many of the developments of the 20th century have their roots in the 19th. The technology of the Industrial Revolution had a great impact on society. Inventions not only introduced new industries for employment, but the products and services produced also altered society.

The population of England almost doubled from 16.8 million in 1851 to 30.5 million in 1901. Scotland's population also rose rapidly, from 2.8 million in 1851 to 4.4 million in 1901. Ireland's population decreased rapidly, from 8.2 million in 1841 to less than 4.5 million in 1901, mostly due to the Great Famine. At the same time, around 15 million emigrants left the United Kingdom in the Victorian era and settled mostly in the United States, Canada, and Australia. Not only did the rapidly expanding British Empire attract immigrants, it also attracted temporary administrators, soldiers, missionaries and businessmen who on their return talked up the Empire as a part of greater Britain.

Culturally there was a transition away from the rationalism of the Georgian period and toward romanticism and mysticism with regard to religion, social values, and the arts. The era is popularly associated with the "Victorian" values of social and sexual restraint.
The status of the poor is one area in which huge changes occurred. A good illustration of the differences between life in the Georgian and Victorian eras are the writings of two of England's greatest authors, Jane Austen and Charles Dickens. Both writers held a fascination for people, society and the details of everyday life but in Austen the poor are almost absent, mainly because they were still the rural poor, remote and almost absent from the minds of the middle classes. For Dickens, only a few years later, the poor were his main subject, as he had partly suffered their fate. The poor now were an unavoidable part of urban society and their existence and plight could not be ignored. Industrialisation made large profits for the entrepreneurs of the times, and their success was in contrast not only to the farm workers who were in competition with imported produce but also to the aristocracy whose landowning wealth was now becoming less significant than business wealth. The British class system created an intricate hierarchy of people which contrasted the new and old rich, the skilled and unskilled, the rural and urban and many more.

Some of the first attacks on industrialisation were the Luddites' destruction of machines, but this had less to do with factory conditions and more to do with machines mass-producing linen much quicker and cheaper than the handmade products of skilled labourers. The army was called to the areas of Luddite activity such as Lancashire and Yorkshire and for a time there were more British soldiers controlling the Luddites than fighting Napoleon in Spain. The squalid, dangerous and oppressive conditions of many of the new Victorian factories and the surrounding communities which rose to service them became important issues of discontent, and the workers began to form trade unions to get their working conditions addressed.

The first unions were feared and distrusted,and ways were devised to ban them. The most widely known case was that of the Tolpuddle Martyrs of 1834, an early attempt at a union whose members were tried on a spurious charge, found guilty and transported to Australia. The sentence was challenged and they were released shortly afterwards, but unions were still threatened. It was not until the formation of the TUC in 1868 and the passing of the Trade Union Act 1871 that union membership became reasonably legitimate. Many pieces of legislation were passed to improve working conditions, including the Ten Hours Act 1847 to reduce working hours, and these culminated in the Factory Act 1901.

Many of these acts resulted from the blight of Britain's agricultural depression. Beginning in 1873 and lasting until 1896, many farmers and rural workers were hard-pressed for a stable income. With the decline in wheat prices and land productivity many countrymen were left looking for any hope of prosperity. Although the British parliament gave substantial aid to farmers and laborers, many still complained that rents were too high, wages too low, and the hours laborers were required to work were too long for their income. As a result, many workers turned to unions to have their concerns heard and, with the acts listed above as proof, were able to achieve some success.

Environmental and health standards rose throughout the Victorian era; improvements in nutrition may also have played a role, although the importance of this is debated. Sewage works were improved as was the quality of drinking water. With a healthier environment, diseases were caught less easily and did not spread as much. Technology was also improving because the population had more money to spend on medical technology (for example, techniques to prevent death in childbirth so more women and children survived), which also led to a greater number of cures for diseases. However, a cholera epidemic took place in London in 1848–49 killing 14,137, and subsequently in 1853 killing 10,738. This anomaly was attributed to the closure and replacement of cesspits by the modern sewerage systems.


2. The British Welfare State and its Social dynamics

The welfare state of the United Kingdom comprises expenditures by the government of the United Kingdom intended to improve health, education, employment and social security. The British system has been classified as a liberal welfare state system.

A. History - the United Kingdom is a unitary state, with limited devolution. Because of this, the structure of various services (including welfare) in different countries of the UK changes in certain respects; for example, the laws which apply in Scotland may not be equally applicable to Northern Ireland or England and Wales. This also carries implications concerning governmental welfare programs.

The United Kingdom, as a welfare state in the modern sense, was anticipated by the Royal Commission into the Operation of the Poor Laws 1832 which found that the old poor law (a part of the English Poor laws) was subject to widespread abuse and promoted squalor, idleness and criminality in its recipients, compared to those who received private charity. Accordingly, the qualifications for receiving aid were tightened up, forcing many recipients to either turn to private charity or accept employment.
Opinions began to be changed late in the century by the reports drawn up by men such as Seebohm Rowntree and Charles Booth into the levels of poverty in Britain. These reports indicated that in the massive industrial cities, between one-quarter and one-third of the population were living below the poverty line.

B. Liberal reforms - after the United Kingdom general election, 1906, the Labour Party became a serious competitor to the Liberal Party. The resulting Liberal welfare reforms laid the foundations of the modern welfare state. The reforms were greatly extended over the next forty years. Certainly, governments which had seen the wave of communist revolts after the First World War were keen to ensure that deeper reforms reduced the risk of mass social unrest. In addition, modern, complex industry had more need for a healthy and educated workforce than older industries had. Crucially, the experience of almost total state control during the Second World War had inured the population to the idea that the state might be able to solve problems in wide areas of national life. Finally, it seems likely that the social mixing involved in mass evacuation of children, and of service in the armed forces, had increased support for welfare among the middle classes. The Liberal government of 1906-1914 implemented welfare policies concerning three main groups in society: the old, the young and working people.

The young - In 1906 local authorities were allowed to provide free school meals.
The Children and Young Persons Act 1908 introduced a set of regulations that became known as the Children's Charter. This imposed severe punishments for neglecting or treating children cruelly. It was made illegal to sell cigarettes to children or send them out begging. Separate juvenile courts were set up, which sent children convicted of a crime to borstals (a forerunner to modern youth detention centres), instead of prison.

The old - In 1908 pensions were introduced for the over 70s.

Working people - In 1909 Labour Exchanges were set up to help unemployed people find work.
The National Insurance Act 1911was passed, ensuring free medical treatment, and sick pay of 10 shillings a week for 26 weeks. An estimated 13 million workers came to be compulsorily covered under this scheme.

C. Beveridge Report and Labour - the aftermath of the First World War boosted demands for social reform, and led to a permanent increase in the role of the state in British society. The end of the war also brought a slump, particularly in northern industrial towns, that deepened into the Great Depression by the 1930s.
During the war, the government became much more involved in people's lives via governmental organisation of the rationing of foodstuffs, clothing and fuel and extra milk and meals being given to expectant mothers and children. The wartime coalition government also committed itself to full employment through Keynesian policies, free universal secondary education, and the introduction of family allowances. Many people welcomed this government intervention and wanted it to go further.

The Beveridge Report of 1942, (which identified five "Giant Evils" in society: squalor, ignorance, want, idleness and disease) essentially recommended a national, compulsory, flat rate insurance scheme which would combine health care, unemployment and retirement benefits. Beveridge himself was careful to emphasize that unemployment benefits should be held to a subsistence level, and after six months would be conditional on work or training, so as not to encourage abuse of the system. That was however predicated on the concept of the "maintenance of employment" which meant ‘it should be possible to make unemployment of any individual for more than 26 weeks continuously a rare thing in normal times’ and recognised that the imposition of a training condition would be impractical if the unemployed were numbered by the million. After its victory in the United Kingdom general election, 1945 the Labour Party pledged to eradicate the Giant Evils, and undertook policy measures to provide for the people of the United Kingdom "from the cradle to the grave."

D. Impact - this policy resulted in increased expenditure and a widening of what was considered to be the state's responsibility. In addition to the central services of education, health, unemployment and sickness allowances, the welfare state also included the idea of increasing redistributive taxation, increasing regulation of industry, food, and housing (better safety regulations, weights and measures controls, etc.)

The foundation of the National Health Service (NHS) did not involve building new hospitals but nationalisation of existing municipal provision and charitable foundations. The aim was not to substantially increase provision but to standardise care across the country; indeed Beveridge believed that the overall cost of medical care would decrease, as people became healthier and so needed less treatment.

However, instead of falling, the cost of the NHS has risen by 4% annually on average due to an ageing population, leading to a reduction in provision. Charges for dentures, and spectacles were introduced in 1951 by the Labour government that had founded the NHS three years earlier and prescription charges by the Conservative Government in 1952. In 1988, free eye tests for all were stopped, although they are now free for the over-60s.
Policies differ in different countries of the United Kingdom, but the provision of a welfare state is still a basic principle of government policy in the United Kingdom today. The principle of health care "free at the point of use" became a central idea of the welfare state, which later Conservative governments, although critical of some aspects of the Welfare State, did not reverse.

E. Expenditure - in the financial year 2014/15, state pensions were overwhelmingly the largest governmental welfare expense, costing £86.5 billion, followed by housing benefit, which accounted for over £20 billion. Expenditure in 2011-12 on benefits included £5.1 billion paid to unemployed people and £41 billion to people on low incomes:

UK Government welfare expenditure 2011–12 (percent)
  State pension (46.32%)
  Housing Benefit (10.55%)
  Disability Living Allowance (7.87%)
  Pension Credit (5.06%)
  Income Support (4.31%)
  Rent rebates (3.43%)
  Attendance allowance (3.31%)
  Jobseeker's Allowance (3.06%)
  Incapacity Benefit (3.06%)
  Council Tax Benefit (3%)
  Other (10.03%)

UK Government welfare expenditure 2014–15
Benefit
Expenditure (£bn)
86.5
29.7
23.5
15.4
Incapacity benefits
14.1
11.6
6.6
5.4
3.1
2.6
Maternity and paternity pay
2.4
2.3
Winter fuel payments
2.1
War pensions
0.8
Universal credit
0.1
Other
5.9
TOTAL
213.9


I. Criticisms - critics of the welfare state claim that, in addition to the vast expense, by relieving citizens of personal responsibility for their own welfare the government has inadvertently promoted irresponsible and immature attitudes, with the result that squalor, ignorance, and idleness are common. In 1980, T. E. Utley, wrote that the welfare state was "an arrangement under which we all largely cease to be responsible for our own behaviour and in return become responsible for everyone else's. The temptations which this way of doing things offers to synthetic anger, fraudulent penitence, all other forms of hypocrisy and the sheer evasion of duty are infinitely too strong for fallen man".

In the early 21st century, the Government of David Cameron has argued for a reduction of welfare spending in the United Kingdom as part of their programme of austerity. Government ministers have argued that a growing culture of welfare dependency is perpetuating welfare spending, and claim that a cultural change is required to reduce the welfare bill. Public opinion in the UK appears to support a reduction in welfare spending, however commentators have suggested that negative public perceptions are founded on exaggerated assumptions about the proportion of spending on unemployment benefit and the level of benefit fraud.

Figures from the Department for Work and Pensions show that benefit fraud is thought to have cost taxpayers £1.2 billion during 2012-13, up 9 per cent on the year before. This is lower than the £1.5bn of benefit underpayment due to error.





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