Douglas Alexander, then international development secretary, and Ed Miliband, then climate change secretary, during their trip to India and Bangladesh in 2009. Photograph: Richard Darlington.
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Labour needs to turn up the volume on international development

Why is Labour not yet talking about responsible capitalism in a global context?

Ed Miliband doesn’t talk about international issues very often. Who can blame him? The perceived wisdom is that there are no votes in foreign affairs. But at times of crisis, opposition politicians can project gravitas and statesmanship, as Miliband did on the vote over military action in Syria. Whatever you think about the issue, that Parliamentary moment turned the political tide at the end of a difficult summer for Labour and cleared the political decks for his successful energy freeze conference speech.

Miliband was due to visit India earlier this year but cancelled his trip because of the flooding of southern England. I was with Miliband the last time he visited India, back in 2009. We visited a slum in West Bengal and flooded villages in Bangladesh. I know he "gets it". But there is a group of progressive activists in development, diplomacy and defence (dubbed "Labour 3D") who are still waiting to hear from him. Their perception is that he hasn’t spoken out since the UK hosted the G8 last year and they feel that he did so then because he had to, rather than because he wanted to. They say none of his party conference speeches have had an international section.

David Cameron also cancelled a trip that week and was forced to respond to a joint Daily Mail-UKIP offensive on the UK aid budget. Rather than defend aid, in its own terms, he made a throw-away remark at a hastily arranged press conference that turned into a hostage to fortune. By saying that "money was no object", he addressed the call for the overseas aid budget to be spent on flood victims at home in a way that turned his austerity narrative on its head. No longer was there "no alternative" and nor were we "all in this together". On the door step, voters contrasted the bedroom tax on "people like us" to a "blank cheque" for people like him.

That domestic political minefield might well be why mainstream politicians steer clear of talking about international aid and why UKIP talk it up endlessly. Last week DFID announced that they had spent 0.72% on aid, but blink and you’d have missed it. The announcement came on the day that the Telegraph described as "a good day to bury bad news".

Yet Labour has a good story to tell about achievements on the global stage, a proud record to defend and an internationalist narrative that would fit comfortably with their domestic one. Tomorrow, the shadow international development secretary, Jim Murphy, speaks at the ONE campaign. It’s another opportunity for Labour to reaffirm their commitment to locking in 0.7, something no Labour politician has done since Ed Balls suggested there was a political consensus on the overall level of aid spending back in 2012.

Labour talks a lot about "responsible capitalism" but activists sometimes feel that is an exclusively domestic agenda, rather than an international one. As well as talking about "One Nation", will Labour also talk about "One World"? It could serve the dual purpose of locking UKIP out of a political consensus on the amount of overseas aid but also give Labour a dividing line with the Tories on the objective of overseas aid.

The policy community’s big critique of Cameron’s contribution to the 2015 Post-Millennium Development Goals framework has been his blind spot on the issue of inequality. There are now more poor people living in countries that are no longer poor. This week Action Aid publish a report warning of the dangers of involving the private sector in development without ensuring that the benefits of growth are shared by the poorest. Why is Labour not yet talking about responsible capitalism in a global context?

The economic development agenda, as advanced by Justine Greening, was brought to DFID by Douglas Alexander before the financial crisis. Again, this is something that the policy community point out. One of the most successful achievements of using UK aid for economic development - access to finance via mobile money (M-Pesa) - featured in the FT and on Newsnight last week. Greening’s embrace of this agenda is an important one because it potentially opens up a wider coalition for the politics of development on the right. But the agenda also carries risks that Labour are perfectly placed to highlight. The risk that a rising economic tide will not necessarily lift all boats. Markets need to be managed if the poor are to prosper.

If there is to be a big tent consensus among the three main parties come election time, they need to start staking out both their common ground and their detailed differences. If the mainstream parties retreat on UK aid, UKIP win by default. But to quote Frankie Goes to Hollywood, when two tribes go to war, a point is all that you can score.

Richard Darlington was Special Adviser at DFID 2009-2010 and is now Head of News at IPPR - follow him on twitter: @RDarlo

Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

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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/