Chronology: Key Events in Inter-War Domestic Problems 1918-51

1918: General election victory for coalition. 'Homes for heroes' (1).

1919: Housing Acts are passed.

1920-21: Unemployment Insurance Acts are passed (the beginning of 'the dole') (2).

1922: The end of the coalition. The 'Geddes axe' (3). First radio broadcasts are made.

1924: Election of the first Labour government. Wheatley Housing Act is passed.

1925: The return to the Gold Standard (4).

1926: The General Strike.

1927: Trade Disputes Act is passed.

1929: Election of the second Labour government. The Wall Street Crash (5). Local Government Act is passed (6).

1931: The adoption of a National Government. 'Talkies' at the cinema are introduced.

1934: Special Areas Act is passed (7). Unemployment Act is passed.

1936: Publication of the 'General Theory' by J M Keynes (8). Rowntree's second study of York.

1938: Holidays with Pay Act is passed.

1939: Britain declares war on Germany.

1940: Churchill becomes PM.

1940-41: The Blitz.

1942: Beveridge Report is published (9).

1944: Education Act is passed (10).

1945: Labour wins the general election.

1946: National Insurance Act. Industries Injuries Act. Nationalisation begins (11).

1948: NHS is set up.

1949: Nationalisation of iron and steel.

1951: Labour loses the general election.

1. In the last year of the war, Lloyd George promised 'Homes Fit for Heroes', i.e. more and better housing for those who had contributed to the war effort. No action was taken until 1919, when Christopher Addison (President of the Local Government Board) was given the job of implementing housing policy. He made a brave attempt to fulfil Lloyd George's promise, but his efforts were curtailed by the economic crisis of 1922.
2. The 1921 Unemployment Insurance Act introduced the idea of 'extended benefit', which meant money was to be given (or doled out) to the unemployed for periods, way beyond which their contributions were calculated to cover. It was a reaction to a prolonged bout of unemployment of a type never witnessed before. It was extremely costly and was held in check by a 'genuinely seeking work clause'.
3. In August 1921 Sir Eric Geddes was appointed to lead a Committee to investigate government expenditure. He reported in February 1922, and recommended severe cutbacks in spending on social policy.
4. The Gold Standard was a monetary tool, designed to fix exchange rates, thus providing confidence to traders and stability to the economy as a whole. Britain returned to the standard at 'pre-war parity', i.e. £1 equal to $4.86. There were some at the time who claimed this was too high a rate and they were proved correct. It made British goods relatively expensive and industries struggled to compete in world markets. It played an important role in determining economic performance until 1931, when it was suspended.
5. The Stock Market, located in Wall Street (New York), USA, crashed in 1929. This had serious repercussions for foreign investors, including those in Britain. It also affected the demand from the USA for British goods and services.
6. This Act disbanded Poor Law Unions and Boards of Guardians. It effectively put an end to the Poor Law.
7. Under this legislation a grant of £2 million was to be used to rejuvenate 'depressed' or 'special' areas. Relative to need, it was a paltry sum and the Act was not a great success. It was amended in 1937 and had a more positive impact, especially in South Wales, Scotland and the North East.
8. John Maynard Keynes was an extremely able economist, who argued in his General Theory of Employment, Interest and Money that controlled increases in government expenditure could stimulate consumer demand and investment, and in turn, reduce unemployment. This was radical, as orthodox thinking emphasised the necessity to maintain balanced budgets, keeping expenditure carefully in check.
9. William Beveridge's main aims were to defeat the five giants of Want, Disease, Ignorance, Squalour and Idleness. This could best be achieved by introducing national insurance, a national health service, education and housing reforms, and full employment.
10. Butler's Education Act provided compulsory free education, introduced an 11+ exam for primary children, and established a tripartite system of secondary modern, grammar and technical schools.
11. Labour's decision to nationalise Britain's major industries, inland transport, cable and wireless, and the Bank of England, was intended to create greater productivity and efficiency. Strongly opposed by the Conservatives, it was a major factor in splitting the government, restoring the Tories' morale and bringing them eventual victory in the 1951 election.