The nationalization program of the Labor government between 1945 and 1951 nevertheless marked an important change in the structure of British society. The financial and economic control of some of the nation's most important industries was transferred from private to public hands. The capitalist system that had served Britain so well found its horizons limited in important fields.
There is now no important political movement in Britain to undo the work of the Labor government in the fields mentioned above. But as long as a generation survives which knew these industries under private control, harsh and persistent criticism will persist. Some of it is just. The standard of efficiency and comfort on British railroads, for instance, has deterioriated since pre-war days. But in many instances the critics are attacking aspects of the nationalized industries which are the result not of nationalization itself but of the gradual wearing out of much of the nation's industrial plant. Two wars, a long depression, and a prolonged period of economic austerity during which only the most important improvements and construction could be financed have had their effect. Both British industry and the transport system upon which it rests—railroads, ports, highways—need immediate improvement and new construction.
Nationalization, however, was only one means of altering the bases of British society. The historian of the future may consider that the tremendous extension of government responsibility for social welfare was a more important factor in the evolution of Britain. The Welfare State has been a target for critics on both sides of the Atlantic. Its admitted cost, its supposed inefficiency are denounced. British critics, however, avoid a cardinal point. The Welfare State is in Britain to stay. No government relying on the electorate for office is going to dismantle it.
This is not a reference book, but we had better be sure of what we mean by the British "Welfare State" as we consider its effect on the society it serves.
The system is much more extensive than most Americans realize. The government is now responsible through either central or local authorities for services that include subsistence for the needy, education and health services for all, housing, employment insurance, the care of the aged or the handicapped, the feeding of mothers and infants, sickness, maternity, and industrial-injury benefits, widows' and retirement pensions, and family allowances.
The modern John Bull can be born, cared for as an infant, educated, employed, hospitalized and treated, and pensioned at the expense of the state and ultimately of himself through his contributions. This is the extreme, and it arouses pious horror among those of conservative mind in Britain as well as in the United States.
Again, as in the case of the nationalization of industry, we find that much of the legislation that established the Welfare State did not spring from the bulging brows of Sir Stafford Cripps, Lord Beveridge, or Aneurin Bevan, but is the latest step in an evolutionary process. National Insurance is the logical outgrowth of the Poor Relief Act of 1601, before there were Englishmen in America, and the contributory principle on which all later measures in this field have been based first appeared in the National Health Insurance Scheme of 1912.
The present system is big and it is expensive. The national and local governments are spending about £2,267,000,000 a year (about $6,347,600,000) on social services for the Welfare State, and the expenditure by the Exchequer on social services amounts to over a quarter of the total.
Yet, as this is Britain where established custom dies hard, voluntary social services supplement the state services. There are literally hundreds of them, ranging from those providing general social service, such as the National Council of Social Service, through specialized organizations, such as Doctor Barnado's Homes for homeless children and the National Association for Mental Health, to religious groups such as the Church of England Children's Society and the Society of St. Vincent de Paul. The existence and vigor of these voluntary organizations testifies to the wrongness of the assumption that all social work in Britain today is in the hands of soulless civil servants.