The principles of poor-law relief which were then recognised by the best minds in England have been somewhat forgotten. These principles were that, while in England provision is made for the support of all who are absolutely destitute, it is of the utmost importance that on the whole the condition of the pauper should be a less eligible one than that of an independent labourer; that nothing should be done that could diminish habits of thrift, forethought, and steady industry among the poor; nothing that could weaken their sense of the necessity of providing for their latter days, or of their duty of supporting, when they have the means, their aged parents and relations. In accordance with these principles it was laid down that outdoor relief should be either absolutely refused to the able-bodied or only granted under most exceptional circumstances; that the workhouse test, with its stringent, deterrent discipline, should be steadily maintained; that relaxations and special favours granted out of public funds should be limited, as far as possible, to cases of special calamity which it was impossible for any prudence or foresight to have averted.
It would certainly be a great exaggeration to say that these principles have disappeared. Indeed, the robust, independent, self-respecting character which it was the object of the Manchester School to encourage is abundantly displayed in the gigantic Friendly and other working-class Co-operative Societies which have so largely increased in England during the last half-century. Two of these Friendly Societies—the Manchester Unity and the Foresters—have each of them more than seven hundred thousand members on their roll. At the same time, it is equally certain that in many quarters a different, and, in my opinion, very dangerous, spirit prevails. In England as elsewhere there is an increased tendency to aggrandise the functions of the State and to look to State aid or State control rather than individual or co-operative effort as the remedy of every evil. Social questions have assumed a greater prominence in politics; and, with the lowering of the franchise, the vague State Socialism, which, in different degrees, pervades most working-class politics, has given a bias to both parties in the State. It has become prominent in every election and has produced many rash pledges.
The close connection between taxation and representation, which was once considered the cardinal principle of English Liberalism, has, in a marked degree, diminished, both in Imperial and local taxation. It used to be contended that those who chiefly paid should chiefly regulate, and that taxation should be as much as possible the voluntary grant of the taxpayers, restricted to their common purposes. But in many quarters a different belief has grown up. It is held that in the hands of a democracy taxation should be made the means of redressing the inequalities of fortune, ability, or industry; the preponderant class voting and spending money which another class are obliged to pay. The income-tax is so arranged that a large majority of the voters are exempt from its burden; a highly graduated system of death duties is now nearly the most prominent of our Imperial taxes; and the Local Government Act of 1894 has placed local taxation on the most democratic basis. The latter has given the power of voting rates to many who do not pay them; and, by abolishing the nominated, or ex-officio, guardians, and the plural voting of the larger ratepayers, it has almost destroyed the influence of property on local taxation.
At the same time the doctrine has arisen, and is now sedulously propagated in England, that the State ought to undertake to provide at the public expense for all old persons, or at least for all deserving old persons, who have not succeeded in obtaining a sufficient livelihood for themselves; that this provision should not be regarded as an eleemosynary grant, but as a positive right; and that, in order to free it from the taint of pauperism, and take away from the recipient all reluctance to receive it, a new fund should be created, entirely distinct from poor-law relief, and administered by some other tribunal than the poor-law guardians.
The claim has been supported on another ground. The immense improvement of the material condition of the English working classes during the last half-century is beyond all question; but it is much more evident among the young and the strong than among the old. The intense competition of modern industry, stimulated to the highest point by free trade, by the factory system, and by the vast development of machinery, has expelled the old and feeble from some of its most important fields; and the influence of trade-unions in enforcing, in each trade which they can control, a uniform and minimum wage, has obliged the employer to employ only the most efficient labour.
The old man who could once easily obtain a little work at low wages now finds it much more difficult; and the recent legislation compelling the employer to compensate his workmen for all accidents that take place in his employment, even when those accidents are in no degree due to any negligence on his own part or on that of his servants, has acted in the same direction. Such serious obligations have been thrown on the employer in the more dangerous trades, that he is obliged in self-defence to restrict himself to the workmen who are least liable to accidents; and they are naturally those whose strength, activity, and eyesight are at their best. Among the recipients of poor-law relief the proportion of men over sixty-five is enormously great; and some figures which, in 1893, were brought before the Commission on the Aged Poor, made a great impression on the country. It was stated that in a single year 29.3 of the whole population over sixty-five were in receipt of poor-law relief in England and Wales; and assuming that a third part of these old persons belonged to the well-to-do, it was calculated that not much less than three in seven must fall into the ranks of pauperism.
There has been much controversy about the accuracy of this statement; and, even if it be admitted, a good deal has been said to attenuate its force. In the poor-law system as it was reformed in 1834, it was a first principle that the workhouse, with its painful and degrading associations, was to be the chief form of poor-law relief, and that outdoor relief should only be granted on exceptional occasions and on stringent conditions. This provision has been gradually relaxed. Outdoor relief, which, in the eyes of the poor, carries with it very little of the discredit and dislike that gathers round the workhouse, is now by far the larger part of poor-law relief; and in many districts it is administered with great laxity.
It has been proved by the clearest evidence that the immense majority of the aged and deserving poor who are in receipt of poor-law relief only receive it in the form of outdoor relief, and very often only in the form of medical relief, and that if they go to the workhouse it is only when their peculiar circumstances make it desirable for them to do so. Wherever a more stringent system of relief is imposed, pauperism invariably and rapidly decreases; and Mr. Loch, the Secretary of the Charity Organisation Society, has collected much evidence to show that, on the whole, old-age pauperism is diminishing, though it has not been diminishing at the same rate as pauperism under the age of sixty. The administration of the workhouses has also greatly improved; and the poor-law infirmaries are becoming hospitals which are largely resorted to in time of sickness by many who might easily avoid them. On the whole, old-age destitution is, and must be, a grave question for philanthropists; but there has been great exaggeration about its magnitude and its hardships.
The expediency of devising a new and better method of providing for the destitute aged poor of deserving character has long been smouldering obscurely in English politics; but it obtained a real importance for the first time when a very strong Royal Commission, under the presidency of Lord Aberdare, was appointed, at the beginning of 1893, to inquire into the question. After long and careful inquiry, and after hearing a great multitude of witnesses, this Commission reported in the spring of 1895. The majority of the members, while recommending various reforms in the administration of the poor-law, reported decisively against any system of old-age pensions, either in the form of endowment or assisted assurance, as likely to do more harm than good; but a minority, which derived special importance from the presence of Mr. Chamberlain, refused to accept this decision as final, and urged that the question should be submitted to a smaller body of experts. In the election which took place in 1895 the question appeared frequently upon the platform, and many members on both sides of politics pledged themselves on the subject.
The weight which is always attached to the speeches of Mr. Chamberlain gave a great impulse to the movement. He never countenanced the idea of universal old-age pensions, which was already advocated by many; but he strongly maintained that special provision, apart from the poor-law and in the shape of pensions, might, and ought to, be made for the old and deserving poor; he expressed his belief that such a measure 'would do more than anything else to secure the happiness of the working classes'; and he suggested as the most feasible scheme that 'whenever a man acquires for himself in a Friendly Society or any other society a pension of 2s. 6d. a week the State should come in and double that pension.' Mr. Chamberlain, however, did not insist on this precise proposal; but he gave the question a great prominence; and among politicians on both sides there was a manifest tendency to make party capital out of it.