A grim poll for the Tories

Labour lead up to eight points as Tory support falls to just 33 per cent in new Populus poll.

David Cameron is said by some to have emerged almost unscathed from the Liam Fox imbroglio and last week's terrible unemployment figures. But the latest monthly Populus/Times poll (£), the first to be conducted since Fox's resignation, makes grim reading for the Prime Minister. Labour's advantage over the Conservatives is up from four points to eight points, the party's largest lead in a Populus poll since the election-that-never-was in 2007. By contrast, the Tories' share of the vote is down to just 33 per cent, their worst Populus figure in this parliament. Regardless of whether you take into account the likely effect of the boundary changes, George Osborne wouldn't get the majority he craves on these figures. And there's little to cheer the Lib Dems, who are down four points to just 8 per cent, their lowest figure since Populus started polling for the Times in 2003.


Latest poll (Populus/Times) Labour majority of 94 (uniform swing).

There is also some evidence that Fox's resignation has damaged the Tories' reputation. The number saying that they are "honest and principled" has dropped from 36 per cent in September to 30 per cent this month, while the proportion saying that they are "competent and capable" has fallen from 48 per cent last month to 42 per cent now.

However, it isn't all bad news for the Tories. Cameron and George Osborne are still rated as a better economic team than Ed Miliband and Ed Balls (a remarkable political achievement given that the economy hasn't grown for nine months), although their lead has fallen from 18 per cent in June to 13 per cent in September. The full data tables aren't available yet but the Times reports: "This drop is particularly pronounced among women, where the lead fell from 20 per cent to 11 per cent over the same period, and from 28 per cent to 9 per cent among skilled manual workers (C2s)."

New Statesman Poll of Polls


Labour majority of 50 (uniform swing).

Yet so long as the Conservatives retain their lead on the economy and Cameron is rated as a better leader than Miliband, the Tories will be confident of clawing back Labour's lead. As I always point out, personal approval ratings are often a better long-term indicator of the next election result than voting intentions. Labour frequently led the Tories under Neil Kinnock, for instance, but Kinnock was never rated above John Major as a potential prime minister. As the economy enters a new and dangerous phase, it will be worth watching to see whether these ratings begin to swing in Miliband's favour.

P.S. Conversely, the latest YouGov poll puts Labour's lead at just three points. Miliband's party is on 40 per cent, the Tories are on 37 per cent, and the Lib Dems are on 9 per cent.

George Eaton is political editor of the New Statesman.

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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/