Welfare state in the United Kingdom

Opinions began to be changed late in the century by reports drawn up by men such as Seebohm Rowntree and Charles Booth into the levels of poverty in Britain.

The People's Budget of 1909, championed by David Lloyd George and fellow Liberal Winston Churchill, introduced unprecedented taxes on the wealthy in Britain and radical social welfare programmes to the country's policies.

It imposed increased taxes on luxuries, liquor, tobacco, high incomes, and land – taxation that fell heavily on the rich.

[7] 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 period of unemployment and poverty, particularly in northern industrial towns, that deepened into the Great Depression by the 1930s.

[13] 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.

Beveridge himself was careful to emphasise 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.

[21] After its victory in the 1945 general election, 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."

While the original intention of the report was to abolish these Giant Evils, the implementation of these suggested policies aimed to reduce income, health, and educational inequalities.

[22] However, the lack of real follow-through on Beveridge's recommended strategies meant that the Labour government ultimately failed to abolish poverty with their welfare reforms.

However, instead of falling, the cost of the NHS has risen by 4% annually on average due to an ageing population,[23] leading to a reduction in provision.

[25] After 1979, Margaret Thatcher had laid the post-war Keynesian consensus to rest, in favour of an Individualist and Monetarist Welfare policy, guided by the economy.

Frank Field said, "A £37bn attack has been mounted on the living standards of many of our fellow citizens to such an extent that possibly millions struggle to keep on top of their rent, pay the bills and buy adequate food.

[31] In the grammar of British social attitudes, an entitlement is something I get, a benefit is something you get, a handout is something they get, and taxpayers’ hard-earned money is something asylum seekers get.

[36] In 2010, the Conservative-Lib Dem coalition government led by David Cameron argued for a reduction of welfare spending in the United Kingdom as part of their programme of austerity.

[39][40] 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% on the year before.

[43] There are also widespread complaints from church groups and others that the UK welfare state does insufficient work to prevent poverty, deprivation and even hunger.

Cuts to disability benefits, Personal Independence Payments (PIP) and employment and support allowance (ESA) are noteworthy, they will have fallen by 10%, since 2010.

The Institute for Public Policy Research (IPPR) found £73 per week, (which is standard for Universal Credit that 2.3 million people claim) amounted to 12.5% of median earnings.

Millions of people in 2019 were "excluded from mainstream society, with the basic goods and amenities needed to survive let alone thrive increasingly out of their grip".

These include "increased debt and rent arrears, food poverty, crime and worsening physical and mental health.

The UK has a tax revenue, as a share of GDP percentage of 12.55%... this is in this is simply incomparable when matched with France's (57%), Germany's (66.66%), and Italy's (75%).

In the closing statement of the British Medical Association (BMA) in July 2023, it was noted that this lack of pandemic preparedness manifested in four key areas; failure to protect healthcare workers, lack of capacity and resources, failings of the test and trace system, and failings in government structures and processes.

[56] The statement also claimed that the "UK was bottom of the table on numbers of doctors, nurses, beds, intensive care units, respirators and ventilators",[56] and that funding of healthcare has been inadequate since 2010,[56] suggesting that the state the NHS found itself in at the outbreak of the pandemic had not been an overnight shift, but rather the effect of the past decade's funding issues.

[citation needed] Note on source, as quoted in the text: "based on statistics of weekly earnings, Employment and Productivity Gazette."

Pie chart of UK central government expenditure , 2009–10. Social Protection is shown in orange, health in red, education in grey, and personal services in light blue. The welfare state represents around two-thirds of total government spending. [ needs update ]
Liberal politicians David Lloyd George and Winston Churchill enacted the 1909 People's Budget which specifically aimed at the redistribution of wealth.