The Proposal

 

Beveridge proposed the expansion and consolidation of social welfare into a comprehensive social insurance scheme to replace the existing mixture of private insurance and means-tested benefits. Operated by the State and funded through weekly payments paid by employers and employees from pay. A flat rate payment from pay in exchange for a flat rate benefit from the State.

 

This comprehensive system of social insurance represented a radical departure from the pre-war era, with the state assuming a greater responsibility for the well-being of its citizens. The impact is immediate and far-reaching, touching the lives of virtually every man, woman, and child in Britain. The Beveridge Report laid the foundation for Britain's Welfare State.

 

Beveridge argued that it was the duty of the State to stand by its citizens from 'cradle to the grave' and to combat the five 'giant evils':

 

• Want: caused by poverty

• Disease: caused by unaffordable health care

• Ignorance: caused by a lack of educational opportunities

• Squalor: caused by poor quality housing

• Idleness: caused by a lack of employment opportunities

 

Beveridge opposed 'means-tested' benefits, and based his proposal on three guiding principles (assumptions):

 

• Full employment: policies to promote full employment.

• A national health system: a free and universal health system.

• Family allowances: to be paid to all households with children regardless of whether they were in or out of work.

 

"Benefit in return for contributions, rather than free allowances

from the State is what the people of Britain desire." He wrote.