National Insurance Today we will understand the Liberal reforms on behalf of the unemployed, specifically the National Insurance Act Lesson starter: Name the two groups that the Liberals attempted to help with their reforms

National Insurance Illness of the wage earner was a major cause of poverty In 1911, Chancellor David Lloyd George introduced a system of National Insurance in two parts: 1. Sickness insurance 2. Insurance for unemployment Workers, employers and government each paid into an account which the worker could be paid from if he lost his job

3 Sickness Insurance National Insurance Act Part I (1911) Requirements: Must earn under £160/year Pay in 4d - employer 3d - state 2d / week Workers, employers and government each paid into an account which the worker could use to pay medical bills and have an income when off work sick

4 Sickness Insurance National Insurance Act I (1911) Successes: * Health insurance for workers earning under £160/year * Sickness benefit of 10 shillings for 13 weeks - 5 shillings for 13 weeks * Free medical treatment * Maternity payment of 30 shillings Limitations: * Benefits lost after 26 weeks (1/2 year) * No provision for family * Contributions to sick payments increased poverty

Unemployment insurance Requirements Workers contributed 2.5 pence - employers paid 2 pence - government paid 3 pence per week in contributions For those who have lost their jobs Benefits of 7 shillings were paid for max 15 weeks It was compulsory for certain types of workers

6 Unemployment Insurance National Insurance Act Part 2 (1911) Successes: *After 1 week absence insured worker receives 7 shillings/ week for 15 weeks * Many trades signed up to this - compulsory for shipbuilding, mechanical engineering, construction, iron founding, sawmilling Limitations: * Limited time of payment dependent on contributions * No payment if worker was fired * No provision for workers family * Insurance available in certain trades - 2 millions workers * Too expensive for government after WW1

These Liberal reforms laid the foundations of a Welfare State and paved the way for more comprehensive measures. But much of this had to be paid for by higher taxes which many resented Some workers also didn’t like being forced to pay part of their earnings to the scheme

Source A is from a speech by Winston Churchill in The cruel waste of disease and unemployment breaking up families will for the first time be fought by the whole strength of the nation. The National Insurance scheme will provide workers with an income of ten shillings a week for up to 26 weeks when they are ill. Task 1 1.How useful is the source as evidence of the Liberal government’s attempts to help the unemployed? 2.How fully does the source describe Liberal reforms for workers between 1908 and 1911?

Task 2 Write a paragraph about the Liberal National Insurance scheme using all of the words below: 1911 Lloyd George sickness unemployment 7 shillings15 weeks poverty contributed employer

Nat 5 question Explain how the reforms introduced by the Liberal Government of helped unemployed people in Britain (5 marks).

Think, pair, share What were the positives and negatives of the 1911 National Insurance Act?

Think, pair, share What were the positives and negatives of the 1911 National Insurance Act? 1.Only paid out for a limited period 2. Based on what you had contributed 3. Only open to certain types of workers 4. Provided the first welfare security for the unemployed 5. Helped sick workers pay medical bills 6. Was better than nothing! Kept many families out of poverty