The Act provided for a non-contributory old age pension for people over the age of seventy, with the cost being borne by taxpayers generally. It was enacted in 1908 and was to pay a weekly pension of 5s a week with effect from 1 January 1909. The level of benefit was deliberately set low to encourage workers to go on making their own provision for retirement. In order to be eligible, claimants had to have an income less than £31. 10s. a year, and also had to pass a 'character test'; only those with a 'good character' could receive the pensions. Claimants also had to have been resident in Great Britain and Ireland for at least twenty years to be eligible, and those who had not worked habitually were also not eligible. Others excluded from receiving the new pension were those in receipt of poor relief, those being held in what were then called 'lunatic asylums', those who had served a prison sentence and been released less than ten years before, those convicted of drunkenness, and any person who was guilty of ‘habitual failure to work’, according to ability.
Implementation
The pension was due to be paid from 1 January 1909, and those eligible had to apply to a local pension committee starting in October 1908 set up by the county councils. Those eligible had to be over the age of 70, must have been a British subject for 20 years and have resided in the United Kingdom. It was open to both men and women, both married and single, and their yearly means must not exceed £31. 10s. Forms for applicants were available from the end of September 1908 and had to be returned to the postmaster of the post office that would pay the individual's benefit. The claims were assessed by the pension officers and then sent to the local pension committee for approval. On 31 December 1908 a total of 596,038 pensions had been granted:
Rate
England
Wales
Scotland
Ireland
5s
297,332
19,691
60,787
161,578
4s
15,178
864
1,443
3,101
3s
14,830
805
1,488
3,131
2s
7,185
362
656
1,628
1s
4,423
234
395
927
Totals
338,948
21,956
64,769
170,365
Effects
Initially, most of the recipients of the pension benefit were women. In order to remove any stigma in receiving the benefit, the scheme was administered by the Post Office rather than the existing social welfare agencies such as the parish or Poor Law.
