The Welfare State - Never Ending Reform
By Frank Field
Last updated 2011-03-10
The mixed economy of welfare
The theme of most welfare histories is 'the coming of the welfare state' as though all previous forms of welfare were temporary and incomplete, that it was inevitable Britain's welfare should be ultimately dominated by state provision, and that, somehow, the journey is now at an end. However, if we step back only 100 years - and use this as a vantage point to look forward - we would have a very different perspective. In the 19th century Britain's welfare was characterised by voluntary provision, with mutual and friendly societies delivering a whole range of benefits. Local authorities and voluntarily run hospitals, together with a national system of panel doctors were financed from health insurance contributions, which were set by the state and collected through mutually owned societies.
http://www.bbc.co.uk/history/british/modern/field_01.shtml