First MacDonald ministry
The first Labour government of the United Kingdom was formed by Ramsay MacDonald. A minority government, it lasted from January to November 1924, when they lost a vote of no confidence and were defeated by the Conservatives in the subsequent election.
After the Carlton Club meeting, in which the Conservatives voted to separate from the Lloyd George coalition, a general election was held in 1922, which resulted in a victory for the Conservatives and their Unionist allies, winning 344 seats and a convincing parliamentary majority of 74 seats — sufficient for a full parliamentary term.
However, several months after the election, the Conservative leader and Prime Minister Bonar Law resigned after being diagnosed with throat cancer, rendering him unable to speak. He was replaced by Stanley Baldwin, who reversed his predecessor's electoral pledge not to introduce protective tariffs. Baldwin sought a fresh mandate from the electorate in 1923.
The result failed to deliver support for Baldwin's protectionist stance; despite the Conservative Party retaining their status as the largest party in Parliament, the Conservatives lost their majority. As a result, Baldwin had little chance of remaining prime minister when the balance of power was held by the Liberal Party under H. H. Asquith, who had campaigned vigorously for free trade.
After losing the vote on the King's Speech, Baldwin resigned as Prime Minister and King George V subsequently invited Ramsay MacDonald to form a government. MacDonald accepted the King's invitation later that day, arriving with his Labour colleagues, to the amusement of many and dismay of others, in full court dress. Labour members were perturbed to hear stories of ministers wearing formal address and coached in court etiquette, not expecting their representatives to continue with traditions like these. Despite this, a number of individuals recognised the extent of labour’s advance, as reflected by J.R. Clynes:
Labour’s rise to national government caused concern amongst a number of politicians and business people, with Winston Churchill arguing that "The enthronement of a Socialist government is a serious national misfortune" while the Lancashire and Yorkshire Bank chairman declared "Now is the time for unflinching courage."
David Lloyd George was less concerned about Labour in power, expressing his views in a letter to his daughter:
Although there were arguments against Labour forming a minority government, MacDonald believed that it was right for Labour to do so; partly because he believed it would give Labour experience of government and a chance to implement part of its programme. As he noted during a speech in Hull: “If we shirk our responsibilities now we should inflict upon ourselves the defeat that our enemies could not inflict upon us.”
Vivian Phillipps, the Liberal Party chief Whip, saw the potential of a minority Labour government supported by the Liberals in implementing positive measures, as he noted in a speech he made in February 1924:
On the socialist side, Beatrice Webb saw Labour taking office as a gamble; albeit one that could be beneficial, as she noted in her diary:
MacDonald and the cabinet
MacDonald had become Labour's first proper leader in 1922. As well as being Prime Minister, he became his own Foreign Secretary, a dual role which he performed well enough, but which alienated the second man in the party, Arthur Henderson, who became Home Secretary. Philip Snowden, the evangelical ex-member of the Independent Labour Party became a rigidly orthodox Chancellor of the Exchequer, while the next two prominent members of the party, J. H. Thomas and J. R. Clynes, became Colonial Secretary and Lord Privy Seal respectively. The Fabian Sidney Webb, who had, along with Henderson, been instrumental in conceiving Labour's 1918 programme 'Labour and the New Social Order' which had committed the party to nationalisation, was appointed President of the Board of Trade; another Fabian, Lord Olivier, became Secretary of State for India. A former chairman of the parliamentary party, Willie Adamson, became Scottish Secretary, while left-wingers Fred Jowett and John Wheatley became, respectively, First Commissioner of Works and Minister of Health.The Cabinet was characterised by a moderate trade union feel, although it also contained a few Liberals. Only three members had previously been ministers : Richard Haldane, 1st Viscount Haldane, Arthur Henderson and J. R. Clynes; though others had been under-secretaries.
Social policy
Despite lacking a parliamentary majority, the First Labour Government was able to introduce a number of social measures which made life more tolerable for working people. The main achievement of the government was the Housing Act 1924, which MacDonald dubbed 'our most important legislative item'. This measure went some way towards rectifying the problem of the housing shortage, caused by the disruption of the building trade during the First World War and the inability of working-class tenants to rent decent, affordable housing. Wheatley was able to provide public housing to council tenants, as against the previous government's commitment to privatisation. This landmark act subsidised the construction of 521,700 rented homes at controlled rents by 1933, when the subsidy for encouraging local authority housing construction was abolished.Various improvements were also made in benefits for pensioners and the unemployed. More generous provision for the unemployed was provided, with increases in both children's allowances and in unemployment benefits for both men and women. Unemployment benefit payments were increased from 15 shillings to 18 shillings a week for men, and from 12 shillings to 15 shillings for women, while the children's allowance was doubled to two shillings. The "gap" between periods of benefit under the unemployment insurance scheme was also abolished. In addition, eligibility for benefits was extended, with the household means-test for the long-term unemployed removed, uncovenanted benefits made a statutory right, and the duration of unemployment benefits extended from 26 to 41 weeks. The waiting period for unemployment benefits was also halved; from 6 to 3 days of unemployment, and the government removed a previous rule under which workpeople were disqualified for unemployment benefits if thrown out of work due to a trade dispute in which they were not directly concerned. At the same time, however, a test introduced in 1921 under which "uncovenanted benefit" claimants had to prove they were "genuinely seeing work" was extended "to all claimants in an attempt to trade off greater strictness in the administration of benefit for higher rates of benefit and the abolition of the Means Test."
For pensioners, increases were made in both old-age pensions and the pensions of ex-servicemen and of their widows and children. Improvements were made in the condition of old-age pensioners by allowing small incomes from savings to be disregarded in calculating the pension due. As a result of this change, 60,000 elderly people, whose meagre savings had previously reduced their pension entitlement, received the full state pension. Eligibility for the state pension was also extended so that it covered 70% of the over-seventies, and 150,000 elderly people who had never received a pension before were now entitled to them. In addition, changes were made which allowed for pensions to be transferred to a surviving parent of a dependant who had a pension. An Old Age Pensions Act was also passed, which guaranteed a weekly pension of ten shillings to people over the age of seventy who earned under 15 shillings a week.
The government also endeavoured to extend educational opportunities. Local authorities were empowered, where they wished, to raise the school-leaving age to 15, the adult education grant was tripled, maintenance allowances for young people in secondary schools were increased, state scholarships were restored, the proportion of free places in secondary schools was increased, approval was given to forty new secondary schools, a survey was carried out to provide for the replacement of as many of the more insanitary or obsolete schools as possible, and forty was set as the maximum class size in elementary school. Restrictions on education spending imposed by the previous government were removed, while local authorities were encouraged to increase the number of free secondary school places. In addition, an Education Act was passed which created an English secondary school system between the ages of 11–14 while a small expansion of central and secondary schools took place. The president of the Board of Education, Charles Trevelyan, also abolished a clause inserted by his predecessor that required authorities to consider whether in small schools "it is not practicable to give the head teacher direct charge of a class." In regards to elementary schools, new regulations were introduced that aimed to secure that classrooms, though limited in accommodation, shouldn’t be diminished in size. He minimum floor-space per child prescribed by the Board was increased from 10 to 12 square feet in respect of children over the age of 11, and from 9 to 10 square metres where younger children were concerned. Schemes were also approved for the erection or extension of secondary school buildings. Money was also provided towards the cost of scholarships for children from ages 14 to 15 in elementary schools.
The Agricultural Wages Act 1924 restored minimum wages for agricultural workers. County committees were established with the power to fix wages, together with a central wages board to supervise the county awards. The act helped bring about a substantial improvement over most of the country, with agricultural wages being quickly increased to 30 shillings a week under the wage committees. In addition, a Conservative bill "to attenuate the powers of the Trade Boards" was dropped. In May 1924 recommendations aimed at preventing accidents in docks were approved by the Home Secretary, which included the institution of Safety First Organisations at the various ports and the adoption of a revised Code of Regulations. A new code was also issued under which "added precautions will have to be taken to deal with the dangers of lead poisoning in electrical accumulator works". A Departmental Committee was also adopted to investigate the question of accidents in shipbuilding yards, while an Industrial Fatigue Research Board conducted investigations into "a comparison of the shift systems in the glass trade, the question of rest pauses in industry, and the effects of variety in repetitive work." Various improvements in workmen’s compensation were also carried out. An order made by the Secretary of State for the Home Department on 16 January 1924 extended the provisions of Section 8 of the Workmen’s Compensation act 1906 to cases of inflammation, ulceration and malignant disease of the skin and subcutaneous tissues as a result of exposure to X-rays or radio-active substances, and manganese poisoning. Miner's silicosis was also included within the provisions for workmen's compensation, under the Workmen's Compensation Act 1924. In regards to a previous Workmen’s Compensation Act passed in 1923, a new memorandum was introduced for the benefit of workers explaining in the measure "in the simplest possible language" as noted by one authority.
The scope of the Trade Boards in the distributive trades was also extended.
The London Traffic Act 1924, which provided for the regulation of London traffic, regulated privately owned public transport; setting timetables and safety standards. A law was introduced which modified the right of a landlord to obtain possession of a house for his own family's use, where unnecessary hardship would be caused to the tenant. The Protection from Eviction Act 1924 provided some degree of protection to tenants "in the face of landlords seeking vacant possession and rent rises." This legislation protected tenants from eviction by landlords who attempted to obtain "decontrolled" status for their properties to raise rents. In addition, government funds were allocated for the repair and modernisation of 60,000 government built houses.
Several measures aimed at supporting agriculture were carried out during Labour’s time in office. The interest on advances to co-operative credit societies formed under the Agricultural Credits Act 1923 passed by the previous Conservative government was reduced to 4%. A sum of £200,000 was placed at the disposal of the Minister of Agriculture for loans to co-operative enterprises, while special marketing officers were appointed "under the direction of a Marketing Commissioner to undertake a thorough survey of marketing problems." An additional sum of £500,000 was allocated from the Development Fund for agricultural research and education, while an additional £60,000 was provided for "unemployment relief schemes of land drainage and reclamation in the winter of 1924-25." Grants to heavy-horse breeding Societies that had previously been abolished on the recommendations of the Geddes Committee in 1922 were restored, and the government also provided for "the exemption from Income Tax of the profits of agricultural societies from shows or exhibitions if applied solely for the purposes of the society." A subsidy for sugar beet cultivation to support agriculture was also introduced.
The restrictions imposed by the previous government on spending by the Poplar Board of Guardians were removed, while the National Health Insurance Bill revised the capitation fee paid to doctors. Restrictions introduced by the previous Coalition government on state grants to the principal public health grant earning services were removed. This was followed by a circular issued to local authorities to this effect and enabling them "to carry out more effectively their public health powers under the law." Child welfare and maternity services were extended. In June 1924, a Circular was issued to all Maternity and Child Welfare Authorities, drawing attention "to the maternal mortality and disability associated with child-bearing and to various suggestions for reducing the risk involved, and urging each Authority to consider the matter with a view to taking such steps as might be necessary to provide an efficient Maternity Service in its area."
A Pensions Act passed in August 1924 provided that "all local authorities must increase their pensions in accordance with this Act"; a proviso that was not obligatory under a previous Pensions Act introduced in 1920. Entitlement to sickness allowances to war widows and orphans were extended, a national electrical policy and a national road policy was launched, and two additional treatment centres for those afflicted by venereal diseases were constructed. Various measures were also introduced to improve mine safety, as characterised by the application of new rules, attempts to enforce safety regulations, and the appointment of additional inspectors. Higher spending on education and health was carried out, while sickness grants were restored.
Various improvements were made to financial and other levels of support for veterans and their relatives. For war pensioners, new pensions were provided "in deserving cases at the rate of over three hundred a week." Ex-service patients who had been treated as "pauper lunatics" under former Governments were removed from being treated in that way. As a result of this change, they were now paid for out of public funds. The income for Need Pensions was increased from 20s a week to 25s a week in the case of widows or single persons, and from 30s to 35s a week "in the case of married persons who were the parents of those who gave their lives in the service of the nation." Regulations were issued under which a woman who had been deserted by her husband should be considered a widow, and that "in cases where the surviving children were in receipt of low wages or had large families, or were suffering from unemployment, their imputed contributions to the parent might be waived." A seven-year limit for the claim for pensions by parents or dependents of men who died as a result of war injuries was abolished and "in every case where the death certificate is to the effect that the man died of his war injuries, his parents and dependents are now entitled to pension." Changes were also carried out to the administration of the Ministry of Pensions which ensured that many men and women received pensions that they otherwise would not have received. Entitlement of children to pensions and treatment allowances was also extended. In hospitals and institutions where ex-Service men were treated, increased facilities were given for leave while dietary was altered and improved. For those suffering from tuberculosis, a provision was made in which overcoats and blankets would be provided for free.
Another achievement of the government was the settlement of dock and railway strikes that led to higher pay for the men involved. Also, in regards to miners, the government set up a court of inquiry which helped miners win improved terms. Other groups of workers also gained improved conditions as a result of government action.