What: The Ministry of National Insurance took over the work of the approved societies that supported the unemployment insurance schemes. The new measures closely adhered to Beveridge’s ideas: a flat rate of benefit and a tripartite system of paying into schemes. For the first time, universal coverage was given to workers and their dependents for periods of unemployment, sickness, medical treatment and funeral expenses (Kenway, 2012). National Insurance (NI) was to provide a minimum level of subsistence for people when they were unable to work.
Why significant: NI instilled the idea that welfare support from the state was a fundamental right, but for those who contributed to the system.