Liberal Social Reforms: Old Age Pensions

Problems Facing the Elderly

Many elderly individuals were trapped in poverty and unable to save for their retirement. Some were forced to work until they were physically unable or endured impoverished final years relying on charity or worse.

Old Age Pensions

In response to these challenges, David Lloyd George, Chancellor of the Exchequer, took action. In 1908, the Old Age Pensions Act was introduced, providing pensions to address these issues. By 1914, around 970,000 people were receiving this benefit.

Details of Old Age Pensions

Pensions were granted to individuals aged 70 and over, offering a weekly income ranging from one shilling (5 pence) to five shillings (25 pence). Married couples received seven shillings and six pence (37 pence), while those with an income over 10 shillings were ineligible for the pension.

Impact in Scotland

By the end of 1908, approximately 65,000 people in Scotland were claiming the pension. Winston Churchill, a Liberal politician who played a role in introducing the policy, acknowledged that the pension might not seem like much, but it was significant for those who needed it.

Improving Lives

The introduction of pensions meant that elderly individuals no longer had to work until they were physically unable. It allowed them to continue paying for rent and food, avoiding reliance on the Poor House.

---

The Elderly

Political Focus

In the 1910 election, 75% of Liberal candidates centered their re-election campaigns on pensions, highlighting their popularity among older people and the success of this policy.

Challenges and Criticisms:

• The eligibility age for pensions was set at 70, while the average life expectancy for men and women was much lower, forcing many to work into their 60s, even when ill.
• The pension amount, while helpful, did not completely lift older people out of poverty, as it fell short of the income needed.
• Certain groups, including recent prisoners and pensioners who had not lived in Britain for twenty years or more, were excluded from claiming pensions.