Show Hide image

Laurie Penny: The power of the broken window pane at Millbank

Why the Millbank protests are just the beginning.

One hundred years ago, a gang of mostly middle-class protesters had finally had enough of being overlooked by successive administrations and decided to go and smash up some government buildings to make their point. Their leader insisted that when the state holds itself unanswerable to the people, "the broken pane of glass is the most valuable argument in modern politics".

That leader was Emmeline Pankhurst, and the protesters were the suffragettes. Although they faced a great deal of public disapprobation at the time, history has vindicated the international movement for women's suffrage as intrepid citizens who forfeited their freedom, their public reputations and, in some cases, their lives, to win political enfranchisement for future generations of women and girls -- even if they had to break a few windows to do so.

This month, the young people of Britain appeared to reach a similar breaking point. Feeling that they no longer have a voice or a stake in the political process, that their votes are worthless if the parties that they supported instantly break their manifesto pledges, they took to the streets in their thousands and launched a furious attack on Tory HQ, smashing windows and dropping banners from the roof. Property damage, it seems, is still the last resort of citizens whose leaders prioritise the interests of private property above the interests of the people.

Property and propaganda

Like the suffragettes, the students and schoolchildren who tore into the bottom storey of 30 Millbank have quickly found themselves subject to a media smear campaign dismissing them as savage and feral, unworthy of consideration by an establishment in need of new reasons to denigrate the distress of the disenfranchised. The logic of this propaganda rather bizarrely equates violence against persons -- which was mercifully avoided at Millbank thanks to the poor aim of the one idiot who decided to drop a fire extinguisher -- with damage to private property, which some might argue is a perfectly legitimate response to a government that has just taken a wrecking ball to the life chances of the young.

Mrs Pankhurst would certainly agree with the Millbank protesters. "There is something that Governments care for far more than human life, and that is the security of property," she said, "and it is through property that we shall strike the enemy." The press, politicians and others who represent the interests of business in this country have condemned the 'tens of thousands of pounds' that, in the Telegraph's estimation, were caused to the lobby at 30 Millbank, and called for the arrest of the perpetrators. Only a few, however, drew any equivalence with the tens of thousands of pounds that have, as a result of the forthcoming changes to higher education, been billed to every single young person who wishes to attend college or university from 2012. The young and the dispossessed, unlike the cheery millionaires of the Coalition, have done their maths with a little honesty. And we don't like the sums.

The young people who I saw punching their way into Tory HQ last week didn't come armed with tiny hammers hidden in their handbags like the suffragettes -- they had only their fists and feet and a powerful sense of betrayal. They could not, however, have chosen a better target if they'd tried. The building is owned by the Reuben Brothers, prominent Conservative party donors whose fortune totals some £5 billion. Insurance will easily cover what, to the Reubens, must seem a relatively puny loss. Unfortunately, the young people who have just seen their security, their society and their dreams of a better future torn away from them by politicians who were elected on a promise to do the precise opposite do not have any sort of insurance to fall back on.

Breaking point

Some kinds of vandalism are easy to condemn. Certainly the antisocial furniture-and-window breakage of today's student protesters had an excellent model in the loutishly methodical property destruction of the Bullingdon club, the exclusive Oxford drinking club to which the current Prime Minister and many of his cronies belonged in their own, entirely state-funded university days. After trashing various private dining rooms and student suites, the Bullingdon boys would write cheques to compensate the owners with the lazy confidence with which they would later authorise the destruction of social security.

It's easy to condemn that kind of pugnacity as "despicable". On the other hand, there are some sorts of vandalism that are so huge and so unspeakable that they're not even considered crimes anymore. The students who shattered the windows of 30 Millbank are being pursued by the police, but nobody has yet called for a witch-hunt of those responsible for the sacking of the welfare state, of public education and of social democracy in this or any other country. This is because it is illegal to smash up someone's lobby, but perfectly legal to smash up someone's future.

From the moment we had language, most of us learned that life was a list of things that we weren't allowed to break: rules, windows, political settlements. The rich, of course, can break all of these things with impunity. The young Oxford students who walked blithely away from the infamous Bullingdon club flowerpot-through-the-window incident twenty years ago are now the most powerful men in the country, and they have few qualms about shattering welfare and education into tiny pieces and selling them off to their friends.

Sources on the ground have suggested that the Millbank protests are just the beginning. If one values social justice above private property, this can only be a good thing, so perhaps it's time that the country began a concerted effort to hold the centre-right to account for its vandalism of civil society. In the words of a million disgruntled shopkeepers. you broke it -- you pay for it.

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

Show Hide image

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/