Welfare 1900-1945

Early Twentieth Century

The Workman’s Compensation act 1897 required employers to pay compensation to employees injured in  the course of work.  It applied initially to workplace as hazardous, but the scheme is extended by a  1906 Act to cover all employees engaged in manual labor,  whose income did not exceed to £250 per annum.

The 1903 Vice-Regal Commission was appointed on Poor Law reforms.  A Royal Commission in 1905 was appointed in respect of the United Kingdom as a whole.  Both reports recommended significant reform, but due to opposition from various sectors, this did not occur.

Meanwhile Central Government was enacting separate provisions to alleviate poverty and distress. The Workman’s Compensation Act 1897 provided a mandatory system of social insurance in respect of occupational injury.  The Old Age Pension Act 1908 and the National Insurance Act 1911 provided the  first steps towards a welfare state.

Early Rights Based Schemes

The Old Age Pension Act 1908 introduced a means tested pension for persons aged over  70 years.  It was financed by general taxation.

It is the first piece of legislation that established an entitlement to state benefits, based on meeting a test. In addition to the means test, the qualifying conditions included certain deterrents. Non-receipt of poor relief was required for certain period.

Those are general clause regarding character. In Ireland, the Act was relatively generous because incomes were relatively lower.  It was set to the same level throughout the UK.

The Blind Persons Act  1920 entitled blind y persons between certain ages to  payment of a pension subject to compliance with certain eligibility criteria.

National Insurance

The National Insurance Act 1911 Act provided for compulsory health insurance for nearly all manual labourers  lower paid non-manual  labourers. The Act inaugurated social insurance schemes. Friendly  societies were central to providing protection against risk for industrial workers.  There were above 2500 societies throughout the United Kingdom.  The models were trade union or friendly society based.

They were administered by non-profit making approved societies.  Many of the functions of the friendly societies were filled by the dispensary system in Ireland. Medical benefits did not apply in Ireland.

The National Insurance Act introduced the first compulsory social insurance scheme.  It applied to the whole of the United Kingdom including all of Ireland.  This is financed by employer and employee contributions plus a state contribution.  Contributions are flat rated.  Benefits were also flat rated.  The scheme was implemented in Ireland by the Irish Insurance Commissioner.

The scheme was implemented through approved societies.  They could be trade unions or friendly societies.  Others could participate by contributions paid through the post office.  The act provided unemployment benefit and sickness benefit for insured workers.

Application in Ireland

The 1911 National Insurance Act, United Kingdom did not fully apply to Ireland. This was a  result of opposition by the Parliamentary party in the church and the existence of the  existing dispensary system.

The 1911 Act was extended to Ireland in a modified form.  In relation for unemployment, it applied as in the United Kingdom.  There were benefits and contributions at flat rate.  The scheme was financed by employee employers and state contributions.

Ireland was a much more agricultural nation with relatively small industrial working class. A much smaller proportion of persons were  members of friendly societies in Ireland.  This  reflected the much smaller industrial working class, concentrated in Belfast to Dublin

Health insurance covered most manual workers over 16.  Non-manual workers below a certain income level were also covered.  They provided cash payments for short term and long term as well as maternity and sanitoria benefits.

In Britain but not in Ireland, the Act provided for medical benefits.  This covered treatment by a doctor and prescriptions.  Medical benefits were omitted because of  oppositions from the Catholic hierarchy and the Irish Parliamentary party.  To some  extend the existing dispensary system, had been more generous than in the United Kingdom.

Post-Independence

The Democratic Programme of the first Dail  set out a  desire to replace the Poor Law system with a sympathetic native system for the nation’s aged and infirm.  By 1920, Sinn Fein  controlled duty many  Poor Law boards which pledged their allegiance to the Dail.

After the establishment of the Irish Free State, the Local Government Act abolished the boards of guardian everywhere except in Dublin. Boards of health and public assistance were established in all other  local authority areas.  A county wide rate was  established for Poor Law relief and medical purposes.

Most workhouses became county homes or hospitals.  County homes provided care for the relief of the aged, chronic invalids and the infirm.  The Department of Local Government and Public Health became the key health related department.

Social Insurance 1930s & 1940s

By the early  1930s, there were almost 500,000 insured persons catered for by 65 approved societies ranging from very  small in size to one with more than 100,000 members.  The National Insurance Act 1933 provided the amalgamation of all societies into the National Health Insurance Society. The Act provided for a committee of management for the new society.

The question of social security and consolidating existing scheme in single social scheme took place over the course of a number of different governments after World War II.  The pressure for  reform was increased by the publication of the Beveridge report and welfare state reforms undertaken by the Labour government after World War II.

Unemployment insurance was initially restricted to employments which had severe fluctuations periodically.  In 1920, it was expanded to all manual workers and non-manual workers below a particular level with the exception of agricultural employees and those in domestic service.

The contribution and benefits rates differentiated between men and women.  The contribution and benefits were raised over time.  Allowances for dependence were introduced in 1921

Unemployment & Widows

Widespread unemployment in the 1930s together with limited cover of  social insurance led to the  introduction of an unemployment assistance scheme under the  Unemployment Assistance Act, 1933.  It applied to those not covered by unemployment insurance or who had exhausted their right to benefit. It was means tested.

Payment rates  varied by area of residence, family circumstances and means. Agricultural and smallholders were included. They could be excluded during periods.

A Widows and Orphans pension was provided  under Widows’ and Orphans’ Pensions Act, 1935.

The contributory element was under the National Health Insurance Act.  There was both a contributory and non-contributory scheme. It also covered certain employees of the state and local authorities.

Children’s Allowance was introduced in 1944.