Nevertheless, between 1906 and 1914, the Liberals made a series of welfare reforms including the first state pension, national health insurance system and unemployment legislation.

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Today, it is widely accepted that a key function of Government should be to provide for and ensure the welfare of its people. In the early 20th century, that view was not held by the vast majority of people. The prevailing ideology of Laissez-Faire (“leave alone”) said that the state should stay out of the lives of the people. Any state intervention in the economic or social world would be a hindrance to individual freedom and a step towards tyranny. Poverty and unemployment were the results of the moral inadequacies of individuals. It is in this environment that the Liberal Government of 1906 would be elected, with a massive majority of 400. Their manifesto promised to protect “free trade”, as opposed to the Conservative policy of tariffs. Social reforms, even if planned, were not mentioned. Nevertheless, between 1906 and 1914, the Liberals made a series of welfare reforms including the first state pension, national health insurance system and unemployment legislation.                                           

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The 1906 election was notable for another reason. The emerging Labour party, promising to improve the lives of working people, gained 24 seats in parliament. Although the MP’s were aligned with the Liberals on most issues, their mere presence was still significant. For the first time, there was an organised working class alternative to the Liberals. This essay will discuss to what extent the Liberal reforms were motivated by this “threat” from the Labour Party: Or whether other factors such as the growth of New Liberalism, drives for ‘national efficiency’ and the social investigations of Booth and Rowntree were just ...

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