Barometer | 10 January 2013
Welfare state The government was attacked for wanting to increase benefits by less than inflation. How have benefits changed in real terms since they were introduced? — Unemployment benefit began with the National Insurance Act 1911, when unemployed workers became eligible for payments of seven shillings a week for up to 15 weeks in the year. In 2013 prices seven shillings equates to £33, compared with £71 for Jobseeker’s Allowance. — The state pension began in 1909 when people over 70 with an income of less than £21 a year became eligible for five shillings a week. In 2013 prices this equates to £24, compared with the basic state pension of £107.45. Child’s pay David Cameron proposed tax relief for childcare costs.