History of Pensions 

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George Barnes

In 1902 George Barnes, General Secretary of the Amalgamated Society of Engineers, formed the National Committee of Organised Labour for Old Age Pension. Barnes spent the next three years travelling the country urging this social welfare reform. The measure was extremely popular and was an important factor in Barnes being able to defeat Andrew Bonar Law , the Conservative cabinet minister in the 1906 General Election.

David Lloyd George, the Chancellor of the Exchequer in the Liberal government led by Herbert Asquith in 1908, was also an opponent of the Poor Law in Britain. He was determined to take action that in his words would "lift the shadow of the workhouse from the homes of the poor". He believed the best way of doing this was to guarantee an income to people who were to old to work. In 1908 Lloyd George introduced the Old Age Pensions Act that provided between 1s. and 5s. a week to people over seventy. These pensions were only paid to citizens on incomes that were not over 12s.

Although most Labour Party members of the House of Commons welcomed Lloyd George's reforms, politicians such as James Keir Hardie, George Barnes, Fred Jowett, Joseph Clynes, and George Lansbury argued that the level of benefits were far too low. They also complained that the pensions should be universal and disliked what was later to be called the Means Test aspect of these reforms.

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