{"id":1733,"date":"2018-01-03T13:42:54","date_gmt":"2018-01-03T13:42:54","guid":{"rendered":"http:\/\/schoolshistory.org.uk\/topics\/?page_id=1733"},"modified":"2026-05-12T15:20:17","modified_gmt":"2026-05-12T15:20:17","slug":"old-age-pensions-act-1908","status":"publish","type":"page","link":"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/old-age-pensions-act-1908\/","title":{"rendered":"Old Age Pensions Act 1908"},"content":{"rendered":"<h2>Old Age Pensions Act 1908<\/h2>\n<p>The Old Age Pension was a cornerstone of Liberal Policy and had been a major part of their election campaign pledges. The Pension would provide income for the elderly. It would revolutionise the way in which the state dealt with the needs of older members of society.<\/p>\n<p>The Old Age pension was not a new idea, despite what Lloyd George suggests in the quote below. It had been mooted by Thomas Paine in his book, the Rights of Man and a scheme was introduced in Prussia under Bismarck. However, it was a major change in the United Kingdom.<\/p>\n<p>&#8220;You have never had a scheme of this kind tried in a great country like ours, with its thronging millions, with its rooted complexities&#8230; This is, therefore, a great experiment&#8230; We do not say that it deals with all the problem of unmerited destitution in this country. We do not even contend that it deals with the worst part of that problem. It might be held that many an old man dependent on the charity of the parish was better off than many a young man, broken down in health, or who cannot find a market for his labour.&#8221; David Lloyd George, June 1908.<\/p>\n<p><a href=\"https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George.jpg\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-1775\" src=\"https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George-230x300.jpg\" alt=\"David Lloyd George\" width=\"230\" height=\"300\" srcset=\"https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George-230x300.jpg 230w, https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George-600x782.jpg 600w, https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George-768x1001.jpg 768w, https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George-786x1024.jpg 786w, https:\/\/schoolshistory.org.uk\/topics\/wp-content\/uploads\/2018\/01\/David_Lloyd_George.jpg 767w\" sizes=\"(max-width: 230px) 100vw, 230px\" \/><\/a><\/p>\n<p>The Old Age Pension set out by the Liberals was as follow:<\/p>\n<ul>\n<li>Individuals over the age of 70: 5 Shillings per week<\/li>\n<li>Couples over the age of 70: 7 Shillings 5 Pence per week<\/li>\n<\/ul>\n<p><em>What&#8217;s that worth today? There were 20 Shillings in an Imperial Pound. 12 Pence in a Shilling. Not taking inflation into account that is 37 Pence per week for Couples. Annually that is \u00a319.24. The calculator below shows how inflation would change this into modern \u00a3)\u00a0<\/em><\/p>\n<p><iframe src=\"http:\/\/inflation.stephenmorley.org\/calculator\/\" width=\"264\" height=\"200\" sandbox=\"allow-scripts allow-top-navigation\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span>[table id=21 \/]&nbsp;<\/p>\n<p><\/iframe><\/p>\n<h5>Funding Old Age Pensions<\/h5>\n<p>The introduction of the scheme would place the Treasury under a huge financial burden. Suddenly it had to find large sums of money to pay the Old Age Pensions with. Lloyd George introduced a &#8216;Peoples Budget&#8217; to raise the \u00a316 million per annum required. In this budget Lloyd George changed the rate of tax. For low incomes, tax was set at 9d (pence) in the pound. Incomes of \u00a33000-4999 had a new rate of tax at 1s 2d. A &#8216;super-tax&#8217; was introduced for people who had an income of \u00a35000 or more, this added a further 6d to tax per pound.<\/p>\n<p>Additional taxes were proposed on the sale of land and on inheritance. These taxes were opposed by the Conservative and Unionist Parties. The House of Lords, with a huge Conservative majority, voted against the Budget as a result of these proposals. In doing so a constitutional crisis began that culminated in the power of the House of Lords being reduced.<\/p>\n<p><strong>Links<\/strong><\/p>\n<p><a href=\"http:\/\/spartacus-educational.com\/Lold.htm\">Spartacus Encylopedia<\/a><\/p>\n<p><a href=\"http:\/\/www.historytoday.com\/richard-cavendish\/house-lords-rejects-1909-people%E2%80%99s-budget\">History Today<\/a><\/p>\n<h3>Modern Britain: <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/\">The Liberal Reforms 1906 &#8211; 1914<\/a><\/h3>\n<p><a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/trade-disputes-act-1906\/\">Trade Disputes Act 1906<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/workmens-compensation-act-1906\/\">Workmens Compensation Act 1906<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/merchant-shipping-act-1906\/\">Merchant Shipping Act 1906<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/education-provision-meals-act-1906\/\">Education (Provision of Meals) Act 1906<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/education-administrative-provisions-act-1907\/\">Education (Administrative Provisions) Act 1907<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/matrimonial-causes-act-1907\/\">Matrimonial Causes Act 1907<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/mines-act-1908\/\">Coal Mines Regulation Act 1908<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/childrens-young-persons-act-childrens-charter-1908\/\">Children&#8217;s and Young Persons Act (Children&#8217;s Charter) 1908<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/old-age-pensions-act-1908\/\">Old Age Pensions Act 1908<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/labour-exchange-act-1909\/\">Labour Exchange Act 1909<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/trade-board-act-1909\/\">Trade Board Act 1909<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/housing-town-planning-act-1909\/\">Housing and Town Planning Act 1909<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/national-insurance-act-1911\/\">National Insurance Act 1911<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/shops-act-1911\/\">Shops Act 1911<\/a> &#8211; <a href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/coal-mines-minimum-wage-act-1912\/\">Coal Mines (Minimum Wage) Act 1912<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Old Age Pensions Act 1908 The Old Age Pension was a cornerstone of Liberal Policy and had been a major part of their election campaign pledges. The Pension would provide income for the elderly. It would revolutionise the way in which the state dealt with the needs of older members of society. The Old Age&hellip;&nbsp;<\/p>\n","protected":false},"author":1,"featured_media":1775,"parent":1709,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":100,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"class_list":["post-1733","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"Discover the transformative impact of the Old Age Pensions Act 1908 on British society and its roots in earlier ideas like Thomas Paine&#039;s vision.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<link rel=\"canonical\" href=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/old-age-pensions-act-1908\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 5.0.1.1\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_GB\" \/>\n\t\t<meta property=\"og:site_name\" content=\"Schoolshistory.org.uk\" \/>\n\t\t<meta property=\"og:type\" content=\"article\" \/>\n\t\t<meta property=\"og:title\" content=\"Old Age Pensions Act 1908 | Schoolshistory.org.uk\" \/>\n\t\t<meta property=\"og:description\" content=\"Discover the transformative impact of the Old Age Pensions Act 1908 on British society and its roots in earlier ideas like Thomas Paine&#039;s vision.\" \/>\n\t\t<meta property=\"og:url\" content=\"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/old-age-pensions-act-1908\/\" \/>\n\t\t<meta property=\"article:published_time\" content=\"2018-01-03T13:42:54+00:00\" \/>\n\t\t<meta property=\"article:modified_time\" content=\"2026-05-12T15:20:17+00:00\" \/>\n\t\t<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/schoolshistory\/\" \/>\n\t\t<meta property=\"article:author\" content=\"@danmoorhousehistory\" \/>\n\t\t<meta name=\"twitter:card\" content=\"summary\" \/>\n\t\t<meta name=\"twitter:site\" content=\"@danmoorhouse\" \/>\n\t\t<meta name=\"twitter:title\" content=\"Old Age Pensions Act 1908 | Schoolshistory.org.uk\" \/>\n\t\t<meta name=\"twitter:description\" content=\"Discover the transformative impact of the Old Age Pensions Act 1908 on British society and its roots in earlier ideas like Thomas Paine&#039;s vision.\" \/>\n\t\t<meta name=\"twitter:creator\" content=\"@danmoorhouse\" \/>\n\t\t<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t\t<meta name=\"twitter:data1\" content=\"Dan Moorhouse\" \/>\n\t\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n\t\t<script type=\"application\/ld+json\" class=\"aioseo-schema\">\n\t\t\t{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\\\/british-history\\\/modern-britain\\\/liberal-reforms\\\/old-age-pensions-act-1908\\\/#breadcrumblist\",\"itemListElement\":[{\"@type\":\"ListItem\",\"@id\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics#listItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\",\"nextItem\":{\"@type\":\"ListItem\",\"@id\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\\\/british-history\\\/#listItem\",\"name\":\"British History\"}},{\"@type\":\"ListItem\",\"@id\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\\\/british-history\\\/#listItem\",\"position\":2,\"name\":\"British History\",\"item\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\\\/british-history\\\/\",\"nextItem\":{\"@type\":\"ListItem\",\"@id\":\"https:\\\/\\\/schoolshistory.org.uk\\\/topics\\\/british-history\\\/modern-britain\\\/#listItem\",\"name\":\"Modern Britain c1900 &#8211; 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the transformative impact of the Old Age Pensions Act 1908 on British society and its roots in earlier ideas like Thomas Paine's vision.","Learn how Lloyd George's 1908 pension scheme revolutionized elderly support in Britain and sparked a major constitutional crisis.","Explore the funding approach for the 1908 Old Age Pension and the tax reforms introduced in Lloyd George's People's Budget.","Uncover the historical significance of the 1908 Old Age Pension, its economic context, and its lasting effect on welfare policies.","Delve into the background, implementation, and political challenges of the Old Age Pensions Act 1908 in shaping modern Britain."],"socialPosts":{"email":[],"linkedin":[],"twitter":[],"facebook":[],"instagram":[]}},"created":"2025-01-24 01:32:15","updated":"2026-07-01 08:07:25","seo_analyzer_scan_date":null,"focus_keyword":"pensions","additional_keywords":null,"truseo_locale":null},"aioseo_breadcrumb":"<div class=\"aioseo-breadcrumbs\"><span 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class=\"aioseo-breadcrumb\">\n\t\t\tOld Age Pensions Act 1908\n\t\t<\/span><\/div>","aioseo_breadcrumb_json":[{"label":"Home","link":"https:\/\/schoolshistory.org.uk\/topics"},{"label":"British History","link":"https:\/\/schoolshistory.org.uk\/topics\/british-history\/"},{"label":"Modern Britain c1900 &#8211; 1945","link":"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/"},{"label":"Liberal Reforms","link":"https:\/\/schoolshistory.org.uk\/topics\/british-history\/modern-britain\/liberal-reforms\/"},{"label":"Old Age Pensions Act 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