There still aren't 120,000 "troubled families"

A zombie statistic refuses to die, even as the DCLG helps 3,000 real families.

The government is very happy that its "troubled families" intervention programme is having results, with the BBC reporting that:

Early intervention by a dedicated case worker has reduced crime among those people involved by 45%… Anti-social behaviour has gone down by 59%.

Those are good results, even if the vast majority of the report is case studies of a few of the families involved. As for the actual results, the vast majority of quantitative data presented is percentage changes. This is clearly important; but it's also crucial to know how many troubled families actually exist, and how many can be helped. After all, a programme which is targeted at just a handful of families isn't particularly useful in the grand scheme of things.

This is an area the government, and the BBC, fall down on severely. The Department for Communities and Local Government's report claims, three times, that there are 120,000 families.

This is incredibly unlikely to be true. We've explained before, in detail, why this is the case, but the short version is that the DCLG claimed there were 120,000 troubled families defined with one set of criteria, but then changed the definition and continued claiming 120,000 families existed.

Unless two markedly different groups of people both add up to 120,000, it seems likely that this number was just pulled out of thin air (none of the research which the DCLG has made available explains where it came from). And yet today's report, and the BBC write-up, repeats it.

The BBC also claims that 40,000 families are expected to be helped this year, which would be a twelve-fold increase from the 3,324 families who were actually helped in 2011-2012 (and, of course, would still be just a third of the claimed eligibility). That figure of 3,324 is not mentioned anywhere in the BBC's report, nor the DCLG's press-release.

The trouble families programme does seem to be a great help to those families successfully referred to it, as Casey's report makes clear. But it is helping far, far fewer families than media reports make out; and part of that may be because no-one seems to actually know how many families are even eligible.

Broken window. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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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/