Social Contract (Britain)

The Social Contract was a policy of the Labour governments of Harold Wilson and James Callaghan in 1970s Britain. The contract referred to a pact between the Labour government and the Trades Union Congress (TUC) in order to allow the former to govern the country more effectively. The main goal of the Social Contract was the control of wage inflation^[1]

In return for a package of measures, such as the repeal of the Industrial Relations Act 1971, increased benefits, food subsidies, price controls and a freeze on rent increases, the trade unions would ensure that their members would cooperate with a programme of voluntary wage restraint, in which pay rises were held down to limits set down by the government.^[1]^[2]

^ ^a ^b Thorpe, Andrew (2001). A History of The British Labour Party. Palgrave. pp. 166–188. ISBN 0-333-92908-X.
^ Conroy, Harry (2006). Callaghan (The 20 British Prime Ministers of the 20th Century). London: Haus Publishing. p. 93. ISBN 978-1-904950-70-7.

[Thorpe70s-1] Thorpe, Andrew (2001). A History of The British Labour Party. Palgrave. pp. 166–188. ISBN 0-333-92908-X.

[Conroy-2] Conroy, Harry (2006). Callaghan (The 20 British Prime Ministers of the 20th Century). London: Haus Publishing. p. 93. ISBN 978-1-904950-70-7.

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