Support for free schools is collapsing

A new poll shows that just 27% of the public support the schools, down from 36% in mid-September.

Free schools have never been as popular as many in Westminster assume and now support for them is collapsing. After widspread coverage of the scandal-plagued Al-Madinah in Derby, where pupils were allegedly segregated by gender and female teachers forced to wear Islamic dress, a YouGov poll for today's Times shows that just 27% back the schools, down from 36% in mid-September, with 47% opposed. The poll also shows that, on this issue, the public agree with Nick. Sixty six per cent share the Deputy PM's belief that the schools should only be able to employ qualified teachers and 56% believe the national curriculum should be compulsory for all institutions.

Clegg said in his long-trailed speech today: "I am totally unapologetic for believing that, as we continue to build a new type of state funded school system – in which parents are presented with a dizzying range of independent, autonomous schools, each with its own different specialism, ethos or mission – parents can make their choice safe in the knowledge that there are certain safeguards. A safety net, if you like, to prevent their children from falling through the cracks. 

"So, yes, I support free schools and academies, but not with exemptions from minimum standards. That’s the bit I want to see change. And that will be clearly set out in our next General Election manifesto. 

"There is nothing – absolutely nothing – inconsistent in believing that greater school autonomy can be married to certain core standards for all.
"And I am totally unapologetic that the Liberal Democrats have our own ideas about how we do that. "

While Michael Gove, a former Times man, is adept at attracting adulation from the media, it seems that the voters remain unconvinced. Sam Coates notes that the "significant shift in public attitude" is "likely to reinforce views expressed in Downing Street that the Education Secretary has not done enough to convince the public of his reform agenda."

If Gove doesn't want his revolution to go the way of Andrew Lansley's and Iain Duncan Smith's, he would be wise to spend less time wooing the leader writers and more time persuading voters. 

Education Secretary Michael Gove at the Conservative conference in Birmingham in 2012. Photograph: Getty Images.

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: products-and-investments/ pensions/pensions2015/