ENGLISH POLITICAL HISTORY 499 



administering the benefits were made (i) " approved societies " i.e. the Friendly 

 Societies, trade unions and such similar bodies as the Insurance Commissioners ap- 

 proved, the intention of the Government being to have as many as possible of the 

 insured included as members of " approved societies," (2) the Post Offices, which 

 would deal with those who would not join societies or whom societies would not admit, 

 and who thus became " deposit contributors." The Local Health Committees, among 

 their other duties (including the administration of sanatorium benefit) were left to 

 arrange for the service of medical practitioners for insured persons, preparing lists of 

 doctors from among whom the patients were to have their own choice, payment to 

 the doctors from the general fund being estimated for at the rate of 6s. (including cost 

 of drugs) per head per annum. This feature of the Bill, as explained by Mr. Lloyd 

 George, quickly aroused the opposition of the doctors, who were organised under the 

 British Medical Association to refuse their services unless a larger payment was made; 

 and as a body the doctors stood out for better terms, month after month going by 

 without any settlement being arrived at, even after the Act came into operation. As 

 medical " benefits " under the Act became due on January 15, 1913; it became a question 

 for the Government whether, if no terms could be arranged, a regular State Medical 

 Service would not have to be started; but this would take time to organise, and mean- 

 while it would be poor consolation to the prospective beneficiaries under the Act for the 

 Government merely to hand them over the money proposed for the doctors and to leave 

 them to make the best of it. On October 23, 1912, Mr. Lloyd George announced the 

 Government's " final " offer to increase the capitation fee to 95. (including drugs and 

 extras), representing a further increase in the remuneration of doctors by 1,650,000; 

 but on November igth the offer was rejected by an overwhelming majority of the 

 profession at a representative meeting of the British Medical Association, and negotia- 

 tions began again. (See below ad Jin.) 



The second reading of the Insurance Bill, debate on which began on May 24, 1911, 

 was carried without a division on May 29th, and the Committee stage went on inter- 

 mittently from July 5th to August 4th, when, with the discussion on the iyth 

 Parliament. cl ause finished, Mr. Lloyd George was still able to regard the Opposition 

 as favourably disposed towards the Bill and co-operating, by useful criti- 

 cism, in giving shape to what was necessarily a very complicated measure. Its re- 

 maining stages were then left over for the Autumn Session, which began on October 

 24th. But in the interval opposition had been growing, and the political situation in 

 other respects was such that genuine co-operation with anything proposed by the 

 Government was hardly possible if party capital could be made for the Unionists by 

 what was unpopular in its programme. Not only were the doctors in full revolt against 

 the terms the Bill proposed for their remuneration, but the working classes themselves 

 were found to dislike exceedingly being taxed in such a direct way for benefits they 

 were not able to appreciate. Mr. Lloyd George, ever an ardent electioneer, however 

 sincere he might be as a social reformer, exasperated the Unionist party, sore enough 

 already at his success with the Budget of 1909 and the electioneering use made of the 

 grant of Old Age Pensions, by his description of the Bill as giving the working classes 

 " ninepence for fourpence;" but there was no doubt about the fourpence being a first 

 charge on wages, and the man who paid it was perhaps only providing ninepence for 

 somebody else, this being the essence of any insurance scheme, and was not so much 

 impressed by the prospect of benefits as by the compulsory character of .the contribu- 

 tions. Among domestic servants the scheme was cordially disliked. Though the 

 Bill was planned so as to involve financial co-operation between the State and the 

 Friendly Societies, there was considerable uncertainty as to how far a great many of the 

 latter, especially the smaller local societies, would reap advantage rather than loss. 

 The whole scheme, in spite of the excellence of its intentions, was seen to raise a number 

 of new social and economic problems, the solution of which nobody could foresee, 

 either before it became law or afterwards; and public discussion concentrated on the 

 difficulties and objections; It was inevitable therefore that, so far as the political 



