The mixed economy of welfare
The theme of most welfare histories is 'the coming of the welfare state' as though all previous forms of welfare were temporary and incomplete, that it was inevitable Britain's welfare should be ultimately dominated by state provision, and that, somehow, the journey is now at an end. However, if we step back only 100 years - and use this as a vantage point to look forward - we would have a very different perspective. In the 19th century Britain's welfare was characterised by voluntary provision, with mutual and friendly societies delivering a whole range of benefits. Local authorities and voluntarily run hospitals, together with a national system of panel doctors were financed from health insurance contributions, which were set by the state and collected through mutually owned societies.
If we move back further still we gain yet another perspective of how welfare was delivered collectively, free of the state. In mediaeval times many hospitals were church run, though the word hospital should not be understood in today's terms. Back then such places were communities where the elderly and frail in particular were looked after.
Parishes, the first basic administrative units in Britain, also had a responsibility to their poor. The Elizabethan Poor Law enshrined this right with the practice of sturdy and less sturdy beggars being sent back to their parish of origin ostensibly for help. This system, although modified, remained largely intact until the offensive launched by the Utilitarian reformers. For them, no fiddling with the facts was beyond the pale if it could discredit the old regime. The new poor law of 1834 was the result of this campaign, and where the principle of 'less eligibility' was enforced - help in the new system would only be offered if a person came into the 'House', as the poor law institution was known - a standard of living awaited them which was below that on which the poorest labourer could survive.
Published: 1999-08-08
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