- The Labour Party was founded in 1900 out of the trade union movement and socialist groups, aiming to give political representation to the working class.
- Labour gradually replaced the Liberals as the main rival to the Conservatives, especially as working-class voters gained the vote after the 1884 Reform Act.
David Lloyd George (1863–1945)
Background
- Born in Wales in 1863 to a modest family, Lloyd George trained as a lawyer before entering politics.
- He became a Liberal MP in 1890 and built a reputation as a radical reformer, often clashing with traditional elites.
Domestic Reforms
- As Chancellor of the Exchequer (1908–1915), he introduced groundbreaking social reforms:
- Old Age Pensions Act (1908): provided income for the elderly poor.
- National Insurance Act (1911): gave workers health insurance and unemployment benefits.
- Labour Exchanges: helped people find jobs.
- To fund these, he introduced the “People’s Budget” (1909), taxing the wealthy and landowners.
- The House of Lords blocked the budget, triggering a constitutional crisis that led to the Parliament Act (1911), which limited the Lords’ veto powers.
Role in the First World War
- As Minister of Munitions (1915), he reorganized industry to supply weapons.
- In 1916, he replaced Asquith as Prime Minister, leading Britain through the difficult later years of the war.
- He worked closely with generals and allies, including Clemenceau of France, and became known as a dynamic wartime leader.
Post-War Achievements and Problems
- Represented Britain at the Paris Peace Conference (1919), where he pushed for moderate terms with Germany but also promised to “make Germany pay.”
- At home, he promised “a land fit for heroes,” but post-war economic problems and unemployment undermined public confidence.
- He led a coalition government with the Conservatives until 1922, when scandals and divisions forced him to resign.
Legacy
- Lloyd George is remembered as the architect of Britain’s early welfare state, laying the foundations for later social reforms.
- His wartime leadership was decisive, but his post-war government struggled to meet high expectations.
- He remained an influential political figure until his death in 1945.
- The Liberal government (1906–1914), led by David Lloyd George, introduced major social reforms to tackle poverty, such as old-age pensions (1908), national insurance (1911), and free school meals.
- These reforms were influenced by studies by Charles Booth and Seebohm Rowntree, which showed poverty was often caused by low wages and unemployment rather than laziness.
- To fund these reforms, Lloyd George introduced the “People’s Budget” (1909), which proposed higher taxes on land and wealthy incomes.
