Miliband has finally achieved total command – but will Blue Ed or Brown Ed take the spoils?

We are about to discover whether Miliband is, as he believes, the first Labour leader of a new era or, as his critics suspect, the last leader of the era now ending.

There should be a word for the mixed emotions that working parents feel when their children’s teachers go on strike. Moral support for aggrieved educators clashes with irritation at the need for emergency childcare. What do you call solidarity softened by resentment? Semisolidarity?

One person who will be unperturbed by the pedagogic walkout on 17 October is Michael Gove. The Education Secretary is on a mission to smash what he sees as a reactionary educational establishment that protects its own privileges more rigorously than it pursues children’s enlightenment. Howls of pain from the NUT are his proof that the plan is working.

It doesn’t do the Tories any favours to alienate a profession that enjoys far more public sympathy than politicians do. At the same time, making parents feel like collateral damage in someone else’s war isn’t a winning strategy for teachers.

The big teaching unions are not formally affiliated to the Labour Party but that doesn’t stop Conservatives trying to make industrial action the opposition’s problem. Tories don’t need much of a pretext to call Ed Miliband a born appeaser of Trotskyite militants. Labour can truthfully deny all responsibility for strikes yet still be discomfited by them.

It is an awkward fact that unions do not inspire a comradeship outside the club of their own members. It is rational for public sector workers to fight against paltry pay rises and to defend their pensions. It is less obvious why private-sector workers at the bottom of the heap whose employers give them no pay rise and no pension at all should cheer them on.

This fracturing of labour solidarity is a crisis for the left. Austerity has not mobilised the masses against a government of capitalist oppressors. It has not galvanised the nation with a noble sense of collective endeavour. The evidence suggests it has made us more jealous in guarding what we have and likelier to suspect others of taking more than their fair share. Across a range of domestic and foreign policies, Labour is struggling to adapt to the mean spirit of the times. Activists cherish a welfare system that subsidises people who earn little or nothing with cash transfers from their neighbours. Public consent for that model is vanishing. The left venerates the anti-racist tradition of refusing to blame foreigners for shortages of jobs and homes. That creed is no match for fearmongering parables of an island nation being overrun. Miliband is an instinctive believer in the founding ideal of the European Union – that the continent’s destructive nationalisms dissolve in cross-border trade. Ukip’s depiction of Brussels as an occupying power has more popular credence.

It would be less of a problem for Labour if it were on the wrong side of public opinion on just one of those issues. Combine them and it looks like swimming against a cultural torrent. Yet in recent weeks Miliband’s entourage has been possessed by new optimism. The Labour leader believes his crusade to tackle the rising cost of living has disoriented David Cameron. He calculates that the Conservatives’ allergy to market intervention leaves the Prime Minister bereft of effective responses.

Meanwhile, the shadow cabinet reshuffle has allowed Labour to relaunch existing policy positions into a more receptive media climate. Rachel Reeves, the shadow work and pensions secretary, declared that Labour would be “tough but fair” on welfare, which is what Liam Byrne had been trying to say. Tristram Hunt, the shadow education secretary, made the same compromise on free schools that Stephen Twigg made back in June (Labour would allow them only in needy areas and would call them something else).The interventions only felt new because the messengers were received as authorised Milibandites and not, as their predecessors had been caricatured, as Blairite provocateurs.

Labour MPs are now watching to see whether new confidence in the leader’s office translates into a more imaginative approach to politics or just tighter control. Seasoned Miliband watchers are familiar with the phenomenon of his two competing political personas. There is the insurgent idealist, the dabbler in “Blue Labour” philosophy that rejects the bureaucratic state as a mechanism for effecting social change. Blue Ed challenges orthodoxies and takes risks. Then there is the Westminster apparatchik who learned politics by watching Gordon Brown sneak up on power. Brown Ed avoids party confrontations and advances in tactical increments.

Blue Ed grasps that the hollowing out of political solidarity in Britain is an existential challenge to the left. He recognises that Labour needs to look and sound like a very different party if it is to turn his “one nation” politics into a genuine antidote to social division. Brown Ed can see a way to eke out the dregs of the old solidarity – public sector loyalists and visceral Tory-haters whose voices can be amplified by a dysfunctional voting system – to smuggle himself into No 10. Advocates of each path have access to Miliband’s ear. Most shadow cabinet ministers profess ignorance of what really goes on in the leader’s office, although they recognise that there is a battle between imagination and caution for possession of Labour’s future.

The moment when a leader asserts his strength is also the point when he is most exposed. After three years of managing divisions and battling disloyalty – some of it real, much of it imagined – Miliband has achieved total command. There is no obstacle to boldness. There is nothing to stop him being as fearless as his friends have always said he can be, which is what the times demand. Caution can be banished. But will it?

We are about to discover whether Miliband is, as he believes, the first Labour leader of a new era or, as his critics suspect, the last leader of the era now ending.

Ed Miliband at the Labour conference in Brighton last month. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 17 October 2013 issue of the New Statesman, The Austerity Pope

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/