Economics

Topping up low wages with poor relief backfired on the poor it aimed to help

Facing high grain prices in 1795, Berkshire magistrates meeting at Speenhamland agreed to subsidise low wages out of parish poor relief, tied to the price of bread. Economists later argued the scheme let employers cut wages further, knowing parishes would cover the gap, trapping labourers in dependency instead of raising their income.

Berkshire magistrates, Speenhamland system — 1795–1834

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