So, Iain Duncan Smith thinks he could live on £53 a week

That's just half the cost of his bluetooth headset.

The Telegraph's Rowena Mason reports:

Iain Duncan Smith has claimed he could live on £53 per week - the amount given to some benefit claimants. The Work and Pensions Secretary said he could survive on £7.57 per day if he "had to", as he defended a raft of cuts to welfare payments coming into force today.

He'd have to cut back a bit if he did so. According to his parliamentary expenses, he spent £110 - two week's worth of benefits - on a Bose bluetooth headset for his car, and another £12.42 on a USB cable (I mean, come on, who spends more than a fiver on a USB cable?). His monthly phone bill has been over £53 every month in the latest financial year, so that's another week each month he can't eat, travel, heat his house or, really do anything. And given he can claim for travel, he may have forgotten that that £5.30 he spent on taking one tube trip within his constituency also comes out of the £53. Just ten of them and he'd go hungry.

But the bigger point is that it's easy for someone like Iain Duncan Smith - or me, or, most likely, you, New Statesman reader - to showboat about living on £53 for a week. Just shift some social events around, cut out meat and booze for a while, be more aggressive about using up left-overs, and you've pretty much done it. You can watch TV instead of going out, and lentils get boring after a while, but a little turmeric makes them interesting enough to eat for a bit.

But when the next week comes round; and the next; and the next; and still £53 is all you have to live on, it gets harder. Do you give up social events entirely? What happens when your TV license runs out? You may have some books lying around the house now, but you'll finish them soon enough. And cooking cheap tasty food is easy when you have store-cupboard essentials; it gets harder when you not only have to factor in the cost of them, but also the cost of the electricity you use to cook. That's not even beginning to examine whether Iain Duncan Smith would be eligible for Housing Benefit in his hypothetical example, or if he'd still be able to happily live rent-free in a £2m house. It seems doubtful that he'd move out to fulfil the example.

The fact is, if you've never had to live on that little, it's hard to imagine what it's like. The realities of being poor are vastly different to the cheery version the rich put themselves through for charity, or to prove a point, and it's easy to guess which IDS is imagining.

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/