 To combat child poverty, legislation to create a universal Child Benefit was passed in 1975 (a reform later implemented by the Callaghan government).To raise the living standards of those dependent on national insurance benefits, the government index-linked short-term benefits to the rate of inflation, while pensions and long-term benefits were tied to increases in prices or earnings, whichever was higher.In 1975, a State Earnings Related Pension Scheme (SERPS) was introduced.