I hope that George Osborne will finally introduce some policies to help savers

Autumn Statement wishlist.

I hope that George Osborne will finally introduce some policies to help savers.  It is vital that the Government stops punishing those who want to take responsibility for themselves and their future, rather than spending everything immediately and then falling back on benefits.  Savers have had such a rough deal in recent years.  It is understandable that some emergency economic help had to be introduced, but enough's enough.  Savers need some help now, in order to ensure that future generations are not put off taking responsibility for their own financial future.

Whether it's young people saving for a house deposit, or older generations trying to prepare for retirement, savings have been damaged by recent policies.  Ultra low interest rates have decimated savings income, high inflation has reduced savers' capital spending power and the policy of Quantitative Easing which has bought huge swathes of the government bond market, has resulted in much lower pensions all round.

There are some major policies that I would love to see in this Autumn Statement.

1.  Help all savers by relaxing the restrictions on ISAs (tax free Individual Savings Accounts) so the savers can choose to use their full annual limit either to save in cash or in stocks and shares.  Currently, only half the annual allowance can be saved in cash.  But young people saving for a house deposit or retirees living on their savings cannot afford to gamble on the stock market.  They should be allowed to shelter the full annual allowance from tax.  This would have the same effect for them as a rise in interest rates, as they would get more savings income.

2.  Pensioners who do not want to buy annuities with their pension fund have had their incomes cut by Government policy when they are in an Income Drawdown pension.  I am calling on the Chancellor to allow people to take more money out of their own pension savings, rather than cutting their pensions in line with the plunge in market annuity rates.  The changes the Chancellor made last year have caused serious hardship for many pensioners, and reversing them would allow people to maintain their pension income, they would have more money to spend and pay more tax, so actually it would benefit the Exchequer.  If they have been responsible enough to save large sums for their retirement, they should be trusted more to spend it appropriately.

3.  I would like to see the Chancellor introduce policies to encourage people to save for later life care needs - at the moment, savings policy is focussing far too much on just pensions, without addressing the looming crisis in social care funding that is coming down the track.  A separate ISA allowance for care savings, which would only be tax-free if the money is used for care - either for oneself or a member of ones family - would start to signal to people that later life saving is about more than just pensions.

4.  I would like to see a more creative approach to encouraging pension funds to invest in local construction or infrastructure projects, or even lending to local businesses.  Perhaps issuing some local bonds specifically for pension funds, with a minimum return underpin that would allow local authority pension schemes to help boost their local economies, or to invest more broadly to benefit the UK economy. 

5.  I would like to see some temporary tax breaks for capital spending projects, perhaps a 12 or 24 month special incentive that would encourage firms to undertake expansion investments quickly.  Large firms have plenty of cash, but currently they are not feeling confident enough to use it. Giving them an incentive to do so, when we know they do have the money, could help kick-start growth and would pay for itself in reduced benefit spending.  Pension funds also have billions of pounds of investments, but they are currently using their money to buy gilts to try to reduce their risks.  This is a counterproductive strategy and the economy would benefit much more if they invested in projects that would provide a benefit to growth directly.

Ros Altmann is a UK pensions expert and campaigner

Savers have had a rough deal. Photograph: Getty Images

Ros Altmann is director general of Saga Group

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Wrists, knees, terrible rages – I felt overwhelmed when Barry came to see me

I teach my registrars to be aware how a consultation is making them feel: that can give valuable clues to the patient’s own emotional state.

To begin with, it seemed that Barry’s wrists were the problem. He told me about the pain he was experiencing, the pins and needles that came and went in his hands. I started to examine him. His palms were calloused, his fingers thick and stubby, veterans of the heavy work he’d undertaken throughout his 57 years. Even as I assessed this first problem, he mentioned his knees. I moved on to look at those. Then it was his back. I couldn’t get to grips with one thing before he veered to the next.

I teach my registrars to be aware how a consultation is making them feel: that can give valuable clues to the patient’s own emotional state. Barry was making me feel overwhelmed, the more so as I learned that he’d been experiencing all these problems for years.

“Why are you coming to see me about them now,” I asked, “rather than six months ago – or in six months’ time?”

“I need some time off, doc.”

There was something about the way he wouldn’t meet my gaze. And again, that feeling of being overwhelmed.

“What’s going on at work?” I asked him.

His tone hardened as he told me how he’d lost his temper a couple of days earlier. How one of the others had been winding him up, and something inside him had snapped, and he’d taken a swing at his workmate and landed a punch.

Barry had walked out and hadn’t been back. I tried to find out if he’d heard from his boss about the incident, if he knew what was likely to happen next.

He told me he didn’t care.

We talked some more. I learned that he’d been uncharacteristically short-tempered for months; his partner was fed up with being shouted at. Sleep had gone to pot, and Barry had taken to drinking heavily to knock himself out at night. He was smoking twice his usual amount. Men like Barry often don’t experience depression as classic low mood and tearfulness; they become filled with rage and turn in on themselves, repelling those closest to them in the process.

Depression is a complex condition, with roots that can frequently be traced right back to childhood experiences, but bouts are often precipitated by problems with relationships, work, money, or health. In Barry’s case, the main factor turned out to be his job. He’d been an HGV driver but at the start of the year his company had lost its operator’s licence. To keep the business afloat, his boss had diversified. Barry hated what he now had to do. He was now a “catcher”.

I didn’t know what that meant. Getting up at the crack of dawn, he told me, driving to some factory farm somewhere, entering huge sheds and spending hours catching chickens, thousands upon thousands of them, shoving them into crates, stashing the crates on a lorry, working under relentless pressure to get the sheds cleared and the birds off to the next stage of the food production chain.

“It’s a young man’s game,” he told me. “It’s crippling me, all that bending and catching.”

It wasn’t really his joints, though. Men like Barry can find it hard to talk about difficult emotion, but it was there in his eyes. I had a sudden understanding: Barry, capturing bird after panicking bird, stuffing them into the transport containers, the air full of alarmed clucking and dislodged feathers. Hour after hour of it. It was traumatising him, but he couldn’t admit anything so poncey.

“I just want to get back to driving.”

That would mean landing a new job, and he doubted he would be able to do so, not at his age. He couldn’t take just any old work, either: he had to earn a decent wage to keep up with a still sizeable mortgage.

We talked about how antidepressants might improve his symptoms, and made a plan to tackle the alcohol. I signed him off to give him some respite and a chance to look for new work – the one thing that was going to resolve his depression. But in the meantime, he felt as trapped as the chickens that he cornered, day after soul-destroying day.

Phil Whitaker’s novel “Sister Sebastian’s Library” will be published by Salt in September

This article first appeared in the 21 July 2016 issue of the New Statesman, The English Revolt