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Post-World War I Reforms and Economic Challenges

Discover the impact of World War I on reforms, unemployment, and the economy, including the DORA Act, means test, hunger marches, and government responses in the inter-war years. Explore the struggles faced by heavy industries and the effects of the Wall Street Crash.

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Post-World War I Reforms and Economic Challenges

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  1. The Inter War Years

  2. World War 1 • Further reforms were held up by the war • Conscription during the war highlighted the need to improve fitness • The government passed emergency laws to give them more power • Dora Defence of the Realm Act 1914 • Rationing was introduced 1918 • By the end of the war the government had plans to introduce more welfare reforms

  3. “Land fit for heroes?” • Lloyd George’s plans did not happen • A coalition government meant Lloyd George was not free to do what he wanted. • The war had damaged the economy • There was high unemployment • There was depression, industries needed modernisation and were undermined by foreign competition • Government tried to cut spending • Five governments in ten years meant no time to put plans into practice.

  4. Heavy Industry • Coal Iron Steel and shipbuilding prevalent in Scotland. • Raw materials, cheap labour, educated workforce. • Decline due to foreign competition, lack of investment, slow to modernise, markets lost due to war and adaption to wartime production.

  5. The Wall Street Crash • The crash in the USA spread to Europe causing high unemployment. • The Labour government of Ramsay Macdonald decided to cut spending. • Many Labour MPs resigned • A new government was formed a “National Government” which cut benefits and introduced the means test.

  6. The means test • Unemployment benefits were cut by 10%. • After 26 weeks claimants had to undergo a means test • This was an investigation about the amount a family owned or earned. • Any income coming in was considered and the benefit cut • Some possessions had to be sold first. • Families split up so they could keep their money • People were humiliated by the means test.

  7. Hunger Marches • 25% of the workforce unemployed • Some workers wanted to do more than wait for the dole. • They joined the NUWM (the national unemployed workers’ movement.) • Some towns dependent on a single industry became unemployment black spots. • The NUWM organised protest marches “hunger marches” against the means test and to gain publicity for how bad things were. • People were very sympathetic towards the marchers.

  8. Response • In 1932 a royal commission was set up to investigate unemployment benefit. • It recommended a national system • The unemployment act 1934 set up a board to ensure those out of work were paid the same across the country, funded by the state. • Government training centres set up • Unemployment black spots were given special area status and government tried to encourage investment in those areas.

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