The Liberal party had before not really committed themselves to any major social reforms, that was not until Lloyd George became Chancellor of the Exchequer in 1906. Then it could be said began a period of "New Liberalism" and radical social reforms in favour of Britain's working class. He knew there needed to be a new approach to the social problems facing much of Britain's working classes. Lloyd George "Urged a massive assault on unemployment, sickness, slum housing and structural poverty." All of Lloyd George's proposed policies were met with some agitation, mostly always from the upper classes as they were normally the victims of high taxes which were needed to raise the revenue required to fund the new social policies.
The Introduction of pensions for the old had been around in Germany since the late nineteenth century, it was not introduced in Britain until 1908. Many old people welcomed state-funded pensions because they now received a regular income. Although in order for the government to fund these new pensions which over 490,000 people qualified it needed to raise 16 million pounds a year. "The introduction of pensions was an official admission that the respectable and hard-working could be poor through no fault of their own." Lloyd George found new popularity among the working classes as he was seen as trying to bring about a rise in their standard of living, this is shown through his policies such as the 1911 National Insurance Act and 1908 Old Age Pensions Act. .
It was in Lloyd George's visit to Germany during 1908 that he realised just how much Britain was falling behind the rest of the world and that the need for social improvements were urgent. Lloyd George was impressed with what he saw in Bismarck's Germany in terms of their social standards and standard of living he realised that if Britain was to remain ahead it was in need of some modernising changes and fast.
