"New generation"? Miliband really meant it, says Mehdi Hasan

Umunna and Reeves are among the "newbies" joining Labour's new shadow cabinet.

At the start of his first conference speech as Labour leader, in September 2010, Ed Miliband proclaimed:

Conference, I stand here today ready to lead: a new generation now leading Labour.

He used the phrase 14 times in that single speech.

A year later, in the form of his first shadow cabinet reshuffle, Miliband has shown us how actions speak louder than words. The Labour leader appointed six new MPs to his shadow cabinet today: Chuka Umunna, Rachel Reeves, Michael Dugher, Stephen Twigg, Margaret Curren and Liz Kendall.

It is a bold (unprecedented?) move -- but one that I believe will pay dividends. Here's what I wrote in my NS column 12 months ago:

Where are the newbies? If Labour wants to construct an appealing shadow cabinet, rather than a cabinet of shadows, the party has to be bold and unorthodox; it has to promote new blood.

Members of the 2010 intake, such as Chuka Umunna, Rachel Reeves and Lisa Nandy -- all young, dynamic, articulate and intelligent -- have kept their heads down. A senior Labour MP says: "Stop mentioning Chuka's name . . . You're going to make him unpopular in the eyes of his peers and wreck his career."

Why? Because "experience", it seems, matters. Candidates are keen to stress their experience, ministerial or otherwise, in the various missives clogging up inboxes across the PLP. But experience is overrated. As Tony Blair proudly says at the outset of his memoir, A Journey, he arrived at No 10 on 1 May 1997 with no ministerial experience. The same is true of David Cameron -- elected to the Commons as an opposition MP in 2001 but Prime Minister by 2010. Barack Obama, meanwhile, spent just 26 months in the Senate before running for the most important job in world politics.

Nor does a lengthy CV automatically translate into good political judgement. As Ed Balls has argued, the "fortysomethings" in the cabinet who were attracted by the prospect of an "early" general election in the autumn of 2007, including himself, Ed Miliband and Douglas Alexander, were proved right in the end, compared to the "greybeards", such as Jack Straw and Geoff Hoon, who wrongly urged caution.

This isn't about ageism (Curren, after all, is 52), or turning a blind eye to the value of experience. It is about the political advantage to Miliband of having a fresh crop of Labour frontbenchers who are untainted by the Blair-Brown wars, don't have to blindly defend the last Labour government, are loyal, energised and enthusiastic, and, crucially, symbolise "change", "newness" and a break with the past. Opposition, remember, is a team activity; it isn't a solo sport.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/