Commons Confidential

Mata Hattie's mutiny

I for one didn't think she had it in her. But the Talibrown mutters that Harriet Harperson was the cabinet end of A Very Rubbish Coup. The word in Westminster is that Gordon Broon's disloyal deputy admitted that her long chats with Patsy Hewitt over the holidays were about more than their old days at the National Council for Civil Liberties. She was, I hear, poised to play the role of Mata Hattie, until a loss of nerve turned "the snow plot" to slush.

Weeping under the £134.50 pair of lamps he bought at our expense is Michael Gove. The Tory educashun spokesman was forced to give up his £65,000 column for the Times when David Cameron ordered frontbenchers to ditch outside earners. When Ken Clarke was asked how he got away with making his BBC jazz programme in January, the rogue chuckled that he had slipped under the wire by making it last year.

A disgruntled insurrectionist whispered that Hattie resents Premier Broon's unwillingness to pull out his finger to land Mr Harperson, Jack "the Knife" Dromey, a safe parliamentary seat. Local flak has unsettled plans to parachute the union baron into Leyton. Scurrilous MPs whisper that Tessa Jowell, a family friend, is willing to lay down Dulwich, a constituency neighbouring Hattie's Peckham patch. Lady Jowell certainly has a ring to it.

Witches feared ducking stools and politicians worry about Mumsnet. In pursuit of votes, the PM's human shield, Sarah Brown, is to endure the questions of yoghurt-knitters and political plants. Yummy Mummy Sammy Cameron was due to appear with her insignificant other until Tory spinners began to fear abuse over her £995 Smythson handbags.

Labour boasts many amateur actors but only one true thespian, the Oscar-winning Glenda Jackson. The Rada-trained MP has a Shakespearean command of the English language. Asked her view of the plotters by a whip, she was more Merry Wives of Windsor than Henry V. "They're a bunch of arseholes," was Queen Glenda's considered view.

The rarefied surroundings of the Cholmondeley Room in the House of Lords made an incongruous venue for the Electoral Reform Society's New Year bash. Perhaps the all-party CND group should check whether Aldermaston is available.

Kevin Maguire is associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

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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/