OCR Specification focus:
‘the Labour governments 1945–1951, Attlee as Prime Minister, government policies and achievements, national insurance, health, education and nationalisation; problems of balance of payments, rationing, wage freezes, internal divisions, Conservative reorganisation; the 1950 and 1951 elections’
The Labour governments of 1945–1951 introduced ambitious reforms under Attlee, reshaping Britain’s welfare state, national economy, and social policies, while facing considerable financial and political challenges.
Clement Attlee as Prime Minister
Clement Attlee became Prime Minister in July 1945 following Labour’s landslide election victory. His leadership style was understated yet effective, enabling strong cabinet cooperation. Attlee was a skilled manager rather than a charismatic figure, but his emphasis on collective responsibility helped drive through wide-reaching reforms.
Key Features of Leadership
Preference for delegation and trust in capable ministers such as Aneurin Bevan, Ernest Bevin, and Hugh Dalton.
Prioritisation of welfare reforms and national reconstruction over imperial commitments.
Focus on consensus-driven politics, though his government often had to make difficult trade-offs due to limited resources.
Government Policies and Achievements
Labour’s achievements between 1945 and 1951 were some of the most transformative in British political history, laying the foundation of the modern welfare state.
National Insurance and Welfare
The National Insurance Act (1946) created a system of universal contributions, providing benefits for unemployment, sickness, maternity, and widowhood.
This system embodied the principle of “cradle to grave” welfare, aiming to protect all citizens from economic insecurity.
National Insurance: A compulsory contribution-based system introduced in 1946 that funded benefits such as pensions, sickness pay, and unemployment relief.
Health Reforms
The National Health Service (NHS) was introduced in 1948, spearheaded by Aneurin Bevan.

Official four-page leaflet issued to households in July 1948 explaining the new National Health Service, free at the point of delivery. It shows how government communicated the scope and principles of the NHS to the public at launch. The leaflet’s wording reflects the post-war drive to universal healthcare under Attlee’s government. Source
The NHS provided free healthcare at the point of delivery, covering doctors, hospitals, dental treatment, and spectacles.
Despite opposition from doctors and the Conservative Party, the NHS became a central pillar of British society.
Education Reforms
The Butler Education Act of 1944, inherited from the wartime coalition, was implemented by Labour.
It introduced free secondary education for all, raised the school leaving age to 15, and established the tripartite system of grammar, secondary modern, and technical schools.
Labour focused on expanding access and increasing funding for local education authorities.
Nationalisation of Industry
Labour pursued a bold programme of nationalisation, justified by the need for efficiency, reconstruction, and fair distribution of resources.
Coal, railways, and steel industries were brought under state ownership.
Other sectors included gas, electricity, and the Bank of England.
Nationalisation aimed to modernise Britain’s economy but faced criticism for bureaucracy and inefficiency.
Problems and Challenges
Although Labour achieved significant reforms, the government faced deep economic and political difficulties throughout its term.
Balance of Payments and Economic Strain
Post-war Britain faced a severe balance of payments crisis, worsened by wartime debts and the cost of overseas commitments.
The government relied on American loans, including the Marshall Aid programme, but these were not sufficient to eliminate deficits.
Austerity measures became necessary, with exports prioritised over domestic consumption.
Balance of Payments: A record of all economic transactions between a country and the rest of the world, including trade, investment, and financial transfers.
Rationing and Wage Freezes
Despite the war ending in 1945, rationing continued well into the late 1940s.
Wage freezes were imposed to curb inflation, leading to discontent among workers and trade unions.
Austerity became a defining feature of Labour’s rule, undermining public support despite the reforms.
Internal Divisions
Labour was divided between left-wing radicals, who demanded further nationalisation, and moderates, who prioritised stability.
Bevan resigned in 1951 over the introduction of charges for prescriptions and dental care, symbolising the strain within the party.
These tensions weakened Labour’s cohesion and public image.
Conservative Reorganisation
Under the leadership of Churchill, and later R.A. Butler, the Conservative Party reorganised itself after 1945.
Conservatives accepted many welfare reforms, marking a shift towards a post-war consensus.
By 1951, the party presented itself as a credible alternative, benefiting from Labour’s difficulties.
The Elections of 1950 and 1951
The 1950 Election
Labour won the 1950 election, but its majority shrank drastically to just five seats.
The government remained in power but was weakened by parliamentary arithmetic and economic strain.
The 1951 Election
In 1951, Labour called another election hoping to strengthen its position.
Despite winning more votes than the Conservatives, Labour lost its majority due to the first-past-the-post system.

Constituency-level map of the 1951 UK general election results. It demonstrates the geographic distribution of seats that returned the Conservatives to office despite Labour’s higher vote total. Being an SVG, it scales cleanly for detailed study of regional patterns. Source
The Conservatives, under Churchill, returned to power, marking the end of Attlee’s government.
Legacy of the Labour Governments
Between 1945 and 1951, Labour laid the foundations of the modern British welfare state, nationalised key industries, and expanded education and healthcare. Yet, persistent economic crises, rationing, internal divisions, and electoral setbacks limited their long-term hold on power.
FAQ
Britain relied heavily on American loans and later Marshall Aid to stabilise its economy after the war.
This support enabled reconstruction but came with pressure to prioritise exports, limit welfare spending, and maintain austerity. It tied Britain closely to the United States, influencing both economic decisions and foreign policy priorities.
Nationalisation focused on industries deemed vital to economic stability and national security.
Coal, steel, railways, gas, electricity, and the Bank of England were targeted as essential for reconstruction and modernisation.
Sectors like retail or agriculture remained private because they were less central to economic control and too politically controversial.
This selective approach reflected Labour’s desire to balance socialist principles with practical governance.
Although rationing was necessary to manage shortages and support exports, it caused widespread frustration.
Everyday goods such as meat, bread, and clothing remained restricted, sometimes more tightly than during the war.
This sense of ongoing sacrifice undermined Labour’s popularity, particularly as the public had expected relief from wartime restrictions.
Disputes between moderates and left-wing members created instability.
Moderates emphasised economic caution and gradual reform.
Radicals pushed for more extensive nationalisation and welfare expansion.
Bevan’s resignation in 1951 over prescription charges highlighted these divisions, weakening cohesion and public trust in Labour’s leadership.
Labour actually won more votes than the Conservatives but lost under the first-past-the-post system.
Their narrow parliamentary majority from 1950 made governance difficult, and austerity further eroded support.
Conservative reorganisation allowed Churchill’s party to present itself as stable and pragmatic, convincing many voters to favour change.
Practice Questions
Question 1 (2 marks)
In which year was the National Health Service (NHS) established, and who was the minister most associated with its creation?
Mark scheme:
1 mark for correct year: 1948
1 mark for correct minister: Aneurin Bevan
Question 2 (6 marks)
Explain two challenges faced by the Labour governments of 1945–1951 in maintaining public support despite their reforms.
Mark scheme:
Award up to 3 marks for each well-explained challenge.
1 mark for identifying a relevant challenge.
1 mark for providing detail or context.
1 mark for explaining how or why this posed difficulties for Labour in maintaining support.
Possible points:
Rationing and austerity: Continued rationing of food and clothing into the late 1940s created dissatisfaction; austerity measures reduced public enthusiasm for Labour.
Economic crises and balance of payments issues: Persistent shortages and reliance on loans undermined confidence in Labour’s economic management.
Wage freezes and union tensions: Angered the working class and trade unions, eroding Labour’s traditional base of support.
Internal party divisions: Splits, such as Bevan’s resignation in 1951, weakened Labour’s image of unity and stability.
Maximum 6 marks available.