OCR Specification focus:
‘The origins and development of the Labour Party and the Trade Unions from 1893 to 1914; Trade Unions and problems of industrial unrest’
The early twentieth century saw the growth of the Labour Party and rising trade unionism as industrial tensions sharpened. Labour emerged as a political voice for working-class representation.
The Origins of the Labour Party
The Independent Labour Party (ILP)
The Independent Labour Party (ILP), founded in 1893 by Keir Hardie, marked the first significant attempt to create a socialist political movement.

Keir Hardie, founder of the Independent Labour Party, symbolised the push for independent working-class political representation. His leadership linked early socialist ideals with trade union aspirations. The portrait provides a clear visual anchor for the ILP’s emergence. Source
The ILP aimed to secure independent working-class representation, distinct from the Liberal Party.
Its ideology combined Christian socialism, trade unionism, and ideas of social justice.
Despite its ambitions, the ILP struggled electorally in the 1890s due to limited resources and lack of national organisation.
Independent Labour Party (ILP): A socialist political organisation formed in 1893 to represent working-class interests and provide an alternative to the Liberal Party.
Trade Union Political Involvement
By the late nineteenth century, trade unions increasingly recognised the need for parliamentary representation. Legal reforms such as the Trade Union Act of 1871 had confirmed their rights, but industrial disputes highlighted their vulnerability without political influence.
Early attempts to work with Liberals proved insufficient.
A new organisational structure was needed to unify socialist societies and unions.
The Formation of the Labour Representation Committee (LRC)
Establishment in 1900
The Labour Representation Committee (LRC) was created in 1900, bringing together trade unions, the ILP, and the Fabian Society.
The Fabians contributed gradualist, intellectual socialism.
Trade unions provided mass membership and financial resources.
The ILP supplied leadership and grassroots activism.
Early Success
In the 1900 general election, the LRC secured just two MPs, including Keir Hardie.
However, in 1903, the Lib–Lab Pact with the Liberal Party gave Labour candidates a clearer run in certain constituencies, avoiding vote splits.
This arrangement enabled Labour’s parliamentary representation to expand significantly by 1906.
Labour Representation Committee (LRC): The coalition of socialist groups and trade unions formed in 1900 to coordinate working-class candidates for Parliament, later becoming the Labour Party.
The Emergence of the Labour Party
Transformation in 1906
Following the general election of 1906, the LRC rebranded as the Labour Party.
The Party won 29 seats, establishing itself as a credible political force.
Its focus was not revolutionary socialism but reformist policies such as improved working conditions, better housing, and social insurance.
Trade Union Influence
Labour was heavily reliant on trade union financing and support.
The 1901 Taff Vale case severely threatened union power when the House of Lords ruled unions could be sued for strike-related damages.
This decision alarmed unions and strengthened their determination to secure political protection through Labour.
Trade Unions and Industrial Unrest
Growth of Trade Unionism
By the early twentieth century, trade unions were rapidly expanding, particularly among unskilled workers through the New Unionism movement.
Membership grew from 2 million in 1900 to 4 million by 1914.
Larger, general unions began to replace smaller craft-based organisations.
Causes of Industrial Unrest
Industrial unrest between 1910 and 1914 was fuelled by:
Rising living costs and stagnant wages.
Poor working conditions and long hours.
Increasing union militancy, especially in shipping, coal mining, and railways.
The ‘Great Unrest’ 1910–1914
This period saw a wave of strikes and confrontations:
1909–1910: Dock strikes in London and Liverpool.
1911: National railway strike forced government intervention.

Soldiers guard Broad Street railway station, London, during the 1911 national railway strike. The deployment of troops highlights the confrontation between organised labour and the state in this period. The image neatly exemplifies the industrial tensions described in the syllabus. Source
1912: The Coal Miners’ Strike demanded a national minimum wage.
These strikes often involved violent clashes with employers and police.
The ‘Great Unrest’: A period of heightened industrial disputes in Britain between 1910 and 1914, marked by mass strikes and rising militancy among trade unions.
The Development of Labour Politics
Parliamentary Growth
In the January 1910 election, Labour won 40 seats, demonstrating steady growth.
By 1914, Labour had become the recognised voice of organised labour in politics.
Challenges
Despite growth, Labour faced challenges:
Dependence on Liberal alliances limited its independence.
Ideological diversity between Fabians, ILP radicals, and trade unions caused internal tension.
Financial reliance on union contributions left the Party vulnerable, especially after legal disputes such as the Osborne Judgment of 1909, which banned compulsory union levies for political funds until reversed in 1913.
Long-Term Significance
By 1914, Labour had not yet displaced the Liberals but had established itself as the permanent representative of working-class interests.
Industrial unrest gave Labour credibility as the political defender of unions.
The foundations were laid for its post-war expansion, particularly after the 1918 Constitution.
Key Features of the Period
1893: Formation of ILP under Keir Hardie.
1900: Creation of Labour Representation Committee (LRC).
1906: Reconstitution as Labour Party; 29 MPs elected.
1901 Taff Vale Case: Strengthened union ties to Labour.
1909 Osborne Judgment: Restricted union political funding, resolved in 1913.
1910–1914 Great Unrest: Wave of strikes highlighted industrial grievances.
By 1914: Labour positioned as a rising political force, closely tied to trade unions.
FAQ
The Fabian Society played a significant part in shaping Labour’s intellectual foundations. Unlike the more radical ILP, Fabians advocated gradual, reformist socialism, believing social change should come through democratic institutions.
They contributed pamphlets, research, and well-educated members, giving Labour respectability among middle-class reformers. While not mass-based, their ideas on welfare and social reform influenced Labour’s policy direction in the early twentieth century.
The Osborne Judgment ruled that trade unions could not compel members to contribute to political funds. This decision threatened Labour’s financial stability, as union levies had been a crucial source of income.
The ruling created organisational difficulties and highlighted Labour’s dependence on union money. The ban was eventually overturned by the Trade Union Act of 1913, restoring compulsory contributions and securing Labour’s future funding.
The 1912 strike was the first national strike by coal miners, uniting workers across different coalfields. Its primary aim was to win a minimum wage, reflecting growing militancy.
The government intervened with the Coal Mines (Minimum Wage) Act, a landmark in establishing wage regulation. This showed unions could exert enough pressure to force legislative change, strengthening their influence within the Labour movement.
The pact was an electoral agreement between the Liberals and Labour. Liberals agreed not to stand candidates in certain constituencies, allowing Labour a clear run.
This deal prevented the splitting of the anti-Conservative vote. As a result, Labour increased its parliamentary seats from 2 in 1900 to 29 in 1906, a breakthrough that would not have been possible without the pact.
Several pressures combined to trigger widespread strikes:
Economic: Rising food prices outpaced wages, creating hardship.
Social: Poor housing and working conditions fuelled discontent.
Industrial: Large-scale unions and new general unions were more militant than older craft unions.
Political: Workers felt underrepresented, pushing unions to press harder for reform.
These factors created an unprecedented wave of coordinated strikes, cementing Labour’s role as the political arm of organised labour.
Practice Questions
Question 1 (2 marks)
Who founded the Independent Labour Party (ILP) in 1893?
Mark Scheme
1 mark for identifying the correct individual.
1 additional mark for including his full name.
Correct answer: Keir Hardie (2 marks).
Question 2 (6 marks)
Explain two reasons why trade unions supported the Labour Party between 1900 and 1914.
Mark Scheme
Up to 3 marks for each reason explained.
1 mark for identifying a valid reason.
1 additional mark for brief explanation.
1 further mark for detail or specific example.
Indicative content:
Taff Vale Case (1901): Showed unions were vulnerable to being sued for damages during strikes; this encouraged them to seek political protection through Labour. (Up to 3 marks)
Representation in Parliament: Trade unions wanted a political voice to advance workers’ rights; the Labour Party gave them direct influence in law-making. (Up to 3 marks)
Other valid reasons may include: growth of union membership, rising industrial unrest, need for collective organisation, the Lib–Lab Pact ensuring better chances of electoral success.