What is a Friendly Society?

Friendly Societies have stood the test of time, providing help and assistance to millions of British citizens by way of financial benefits in time of sickness and death and, in more recent times, thrift and savings schemes – which may enjoy tax-free status. To those who wished to use them as such, they were, and are today, brotherhoods of common ideals. Indeed many of the benefits which the welfare state provides were brought about by the experience of the Friendly Society Movement.

Friendly, or Benefit, Societies were first given legal status by an Act of Parliament which received Royal Assent on 21 June 1793. However, many pre-dated the Act by 50 to 70 years. The Act laid down the basic laws under which they could operate.

Most were based on a particular locality or trade. In the first half of the 19th century, however, emerged a new structure whereby individual groups cooperated under a degree of centralized control. Thus were born the Affiliated Societies or ‘Orders’ such as the Independent Order of Oddfellows, the Ancient Order of Foresters, the Independent Order of Rechabites, etc. And, of course, the Order of the Sons of Temperance. These generally adopted ceremonies similar to those of freemasonry.

Today Friendly Societies continue to encourage savings through pensions, healthcare, insurance and banking. The 1992 Act enabled societies to incorporate, take on new powers and provide additional financial services through subsidiaries.

Being mutual organizations there are no shareholders to pay and so all generated surpluses are used for the benefit of members. This is coupled with the traditional personal service for which they are renowned. Many continue to offer fraternal activities alongside their financial products.

Most societies are members of the Association of Friendly Societies whose members aim to provide their members with a fair and affordable means of taking care of their welfare throughout their lives. Above all, they promote self-help and independence.