THE Conservatives yesterday announced 25 new policies which leader Iain Duncan Smith hopes will be as defining as the pamphlet Margaret Thatcher issued in 1976, a year after she became party leader.

The pamphlet was called The Right Approach, and dealt with the need to reform the economy.

Mr Duncan Smith, a year into his job, is now addressing "quality-of-life" issues.

EDUCATION

"State scholarships" will be created, worth around £5,000 per pupil a year - the equivalent of the average cost of educating a child in a state school.

New schools to be set up outside the state system by charities, community groups, private companies or parents.

Pupils attending these schools would pay for their education with state scholarships.

Such schools could be profit-making or not-for-profit and would initially be set up in inner city areas, where educational results are worst.

Individual parents with children at persistently failing schools would be able to use the scholarships to move them outside the state sector and pay a proportion of the fees for a private education.

In Austria, Denmark and the Netherlands 70 per cent of children are taught in this way.

High-performing state schools will be permitted to expand and attract pupils from failing schools.

AS-levels scrapped as pupils are given "more space and time to learn".

HEALTH

No new charges for NHS treatment. Fees which are already paid, such as prescription charges, will not be increased in real terms.

Consultation will take place with GPs on the possible introduction of charges for abuse of the NHS, such as unnecessarily missing GP appointments. Tax breaks to encourage greater private health care. Dramatic expansion of foundation hospitals.

SAVINGS AND PENSIONS

Each person will have a Lifetime Savings Account (LSA) to prepare for retirement.

LSA savers would be rewarded by contributions from the Government.

Savers would have instant access to the assets they have contributed at times of financial need, such as a house purchase or emergency expense. Until the money is repaid, the linked Government contributions would be held in escrow - a separate account to which the saver has no access.

On retirement, all funds in the LSA would become available to the saver.

This would allow the Government to reward people for saving for their retirement and to assist them in building up a retirement nest-egg without tying up the savers' money or allowing them to fritter away their state assistance before they retire.