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In 1908 David Lloyd George, the Chancellor of the Exchequer in the Liberal government led by Herbert Asquith proposed the 1911 National Insurance Act. This measure gave the British working classes the first contributory system of insurance against illness and unemployment.

All wage-earners between sixteen and seventy had to join the health scheme. Each worker paid 4d. a week and the employer added 3d. and the state 2d. In return for these payments, free medical attention, including medicine was given. Those workers who contributed were also guaranteed 7s. a week for fifteen weeks in any one year, when they were unemployed. These benefits were paid at Labour Exchanges which provided unemployed workers with information on any vacancies which existed in the area.

 

 

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