It formally abolished the Poor Law system that had existed since the reign of Elizabeth I, and established a social safety net for those who did not pay National insurance contributions (such as the homeless, the physically handicapped, and unmarried mothers) and were therefore left uncovered by the National Insurance Act 1946 and the National Insurance (Industrial Injuries) Act 1946.
Det avskaffade de sista resterna av äldre tiders fattigvård, som funnits sedan Elizabeth I:s dagar, och därmed skapades ett socialt skyddsnät för de som inte betalade till National Insurance (som hemlösa, fysiskt handikappade, och ogifta mördrar), vilka inte omfattats av National Insurance Act 1946 och National Insurance (Industrial Injuries) Act 1946.