ABSTRACT
The system introduced after Second World War was more flawed than the Beveridge Plan, having lost the coherence of the original. Basing his argument on a combination of figures derived from pre-war sources, Sir William Beveridge advocated age-related family allowances, averaging 35 pence a week at 1938 prices. He attempted to revalue his 35 pence estimate at post-war prices and came up with a provisional post-war average rate of 45 pence, from which he deducted 5 pence to allow for provision of free school meals and milk. In 1948 when the new legislation took effect, family allowance for a working, two-child family was 25 pence, regardless of the age of the children, but an unemployed family was entitled to between 38 pence and 75 pence for each child, according to age. Thus both the relative poverty of families with children and the disincentive effects of the unemployment trap can be traced back to the Family Allowances Act of 1945.
