Old Age Pensions Act 1909

• • Pensions were non-contributory and were funded from taxes
  • Pensions were paid to men and women over 70 - paid through post offices
  • A single person received 5s a week and married couples 7s 6d, later raised to 10s
  • Full pensions only paid to those with incomes less than 8s a week, those with incomes of 8-12s received a reduced pension on a sliding scale, over 12s a week = no pension (pensions = means tested)
  • To qualify - had to have been a British citizen resident in Britain for 20 years
• Pensions weren't paid to people who:

  • continually failed to find work
  • had been in prison in the last 10 years
  • had claimed poor relief in the past 2 years
  • were drunkards
• The number of people claiming pensions was around 600000, roughly the same number as the elderly claiming poor relief before the act. The cost was also roughly the same. However, it didn't reduce the number of elderly people receiving relief in workhouses, as many were too frail and vulnerable to be able to care for themselves.
• To thousands of older people, the shadow of the workhouse and the sigma of being in receipt of poor relief had gone. So had the threat of an impoverished old age.
• Although it was welcomed by Labour Party members, there was some opposition:

  • conservatives tried to block the reform
  • wealthier people had to pay higher taxes to afford
  • some argued the benefits were far too low
  • some argued it should be available to all, regardless of income
• Lloyd George suggested the OAP Act of 1909 was aimed at 'removing the shadow of the workhouse'.