Remembering when

The Energy Crisis in the 1970’s caused a three-day working week in Great Britain

By Ken Hayes Past Chair and Life Member

Due to increased demand oil

production had increased in the 1960’s. This caused prices to rise in Western economies. Britain and Ireland decimalised their currencies on 15th February 1971, changing from the old £1 which was dived in to 240 old pennies, to a new £1 divided into 100 new pennies. A new penny was worth 2.4 old pennies. This led to a rise in inflation, due to price increase on day-to-day goods and services.

The National Union of Mine workers called a Strike in January 1972 after pay talks with the Government broke down over their demand for a 43% pay raise for mine workers.

A month later a National State of Emergency was declared as Electricity supply shortages meant that power cuts had to be made. This led to severe industrial disruptions and thousands of workers. we’re being laid off. By the end of February an agreement had been made with the NUM. In 1973 the Yom Kippur War between Israel and Egypt led to the oil producing Arab countries to cut off supplies to countries that supported Israel, thus deepening the problems with energy supply.

The Government introduced a threeday working week on consecutive days. Essential services like hospitals and supermarkets were exempt but Television Broadcasters had to shut down their services at 10.30pm. Some people worked by candle or torch light.

People wrapped themselves in blankets or duvets to keep warm. Small businesses were badly affected, and many went out of business. Jobs were lost and wages were unable to be paid.

Further strikes and pay disputes added to the situation and the Government decided the solution was to hold a General Election. This failed to give them a majority of MP’s and the smaller parties refused to form a coalition government and a minority labour government took office led by Prime Minister Harold Wilson. The world’s major industrial countries had to contend with high inflation due to the shortage of petroleum supplies and reduced economic growth, apart from the oil rich countries.

Winter of Discontent 1978

A strike by workers at Ford Motor factory in the Autumn of 1978 was settled by a pay rise of 17%, at a time of the government’s 5% limit on pay rises for public employees. This led to more strikes by public workers, such as hospital workers and refuse collectors. Severe Winter weather and rising unemployment caused more problems for the economy. The Prime Minister, James Callaghan denied there was a crisis. The Conservative leader, Margaret Thatcher aired the severity of the situation in a party-political broadcast. that led to a vote of no confidence in the government and a win by the Conservatives in the general election that followed in 1979. The Conservatives remained in power until the 1997 general election won by the labour party with Tony Blair as Prime Minister.

“The world’s major industrial countries had to contend with high inflation due to the shortage of petroleum supplies and reduced economic growth, apart from the oil rich countries.”