PensionsMar 21 2016

Who is new DWP chief Stephen Crabb?

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Who is new DWP chief Stephen Crabb?

It used to be a week was a long time in politics.

But in the internet age no-one has time for seven days of anything anymore, so ministers are helpfully (except for us poor journalists who have to work it) cramming major political upheavals into a weekend.

By Sunday night (20 March), Britain had open warfare between pension minister Ros Altmann and her ex-boss Iain Duncan-Smith, who, having slipped in a cheeky resignation before heading home on Friday, was himself embroiled in a public quarrel with the government.

Into this fray on Saturday (19 March) stepped new secretary of state for work and pensions Stephen Crabb - a man its doubtful many beyond his Pembrokeshire constituency were aware of four days ago.

Someone you had likely never heard of on Friday now holds one of the most high-profile briefs in government, with the power to make sweeping changes to your clients’ retirements.

So, who is Mr Crabb?

Much has already been written this weekend about Mr Crabb’s humble beginnings growing up in a council flat in a Haverfordwest, grandson of the local baker.

While remarkable for a Conservative politician (and most Labour MPs too these days), let us not fetishize successful plebs... “New pensions secretary was brought up in a council house by a single mother who fled her violent husband” stated the Telegraph on Saturday (19 March).

The fact “many of the houses in that street have now been bought and had small porches, kitchen extensions” built-on is, according to Mr Crabb’s maiden parliamentary speech in 2005, a vindication of “what the Conservative right-to-buy scheme did for hard-working, working-class families”.

Social housing is something to “fall back on”, home ownership should be everyone’s goal, he said.

Elsewhere in his first address on becoming MP for Preseli Pembrokeshire, he praised a Queen’s Speech commitment to cut regulatory burdens on business, like the small firms in his constituency.

Other interesting points of note, expenses incurred by Mr Crabb in carrying out his parliamentary duties during the 2014 to 2015 financial year were £178,817.31, according to the Independent Parliamentary Standards Authority.

This includes employing his wife, Beatrice, as part-time diary manager (though presumably that will be bumped up to a higher paid full-time role now).

Mr Crabb’s hefty expenses bill is on top of his combined ministerial (secretary of state for Wales) and parliamentary salary of £134,565, which includes the parliamentary salary of £74,000. All paid for by the taxpayer. (Go to next page for Mr Crabb’s voting record on pensions and tax)

But it is Mr Crabb’s parliamentary record that offers the best indication of what he will do at the DWP now he is in charge.

An overview of his involvement in the business of the Commons suggests avid but invisible participation; he spoke in just eight debates in the last year, well below average among MPs, according to MP monitoring website Theyworkforyou, but he voted in a very much above average 89.55 per cent of votes in this parliament.

On the vast majority of issues he votes the same way as other Conservative MPs, except over removing hereditary peers from the House of Lords – he voted for while most Conservative MPs generally voted against.

Mr Crabb has never rebelled against his party in the current parliament.

Below is a breakdown of how the new work and pensions secretary has voted in key issues.

But for advisers short on time before the next political Armageddon, his leanings relevant to you and your clients are:

FOR

Higher tax-free income threshold

Encouraging workplace pensions

Cutting corporation tax

Reducing tax avoidance

AGAINST

Raising the tax rate applied to income over £150,000

A banker’s bonus tax

An annual tax on the value of expensive homes (a ‘mansion tax’)

More broadly Mr Crabb’s voting record looks like this: (source: Theyworkforyou.co.uk)

Taxation and employment

FOR

Consistently voted for raising the threshold at which people start to pay income tax

Almost always voted for increasing the rate of VAT

Generally voted for encouraging occupational pensions

Generally voted for higher taxes on banks

Consistently voted for allowing employees to exchange some employment rights for shares in the company they work for

AGAINST

Almost always voted against increasing the tax rate applied to income over £150,000

Almost always voted against a banker’s bonus tax

Almost always voted against an annual tax on the value of expensive homes (a ‘mansion tax’)

Consistently voted for more restrictive regulation of trade union activity

INCONSISTENT

Voted a mixture of for and against automatic enrolment

Welfare and benefits

FOR

Consistently voted for reducing housing benefit for social tenants deemed to have excess bedrooms (the ‘bedroom tax’)

Consistently voted for making local councils responsible for helping those in financial need afford their council tax and reducing the amount spent on such support

Consistently voted for a reduction in spending on welfare benefits

AGAINST

Consistently voted against raising welfare benefits at least in line with prices

Consistently voted against paying higher benefits over longer periods for those unable to work due to illness or disability

Almost always voted against spending public money to create guaranteed jobs for young people who have spent a long time unemployed

Business and the economy

FOR

Consistently voted for reducing the rate of corporation tax

Almost always voted for measures to reduce tax avoidance

INCONSISTENT

Voted a mixture of for and against stronger tax incentives for companies to invest in assets

Social issues

AGAINST

Generally voted against equal gay rights

INCONSISTENT

Voted a mixture of for and against allowing marriage between two people of same sex

Voted a mixture of for and against laws to promote equality and human rights

Health

AGAINST

Consistently voted against restricting the provision of services to private patients by the NHS

Consistently voted for reforming the NHS so GPs buy services on behalf of their patients

Education

FOR

Consistently voted for raising England’s undergraduate tuition fee cap to £9,000 per year

Consistently voted for ending financial support for some 16-19 year olds in training and further education

Constitutional reform

FOR

Almost always voted for reducing central government funding of local government

Almost always voted for fewer MPs in the House of Commons

Consistently voted for local councils keeping money raised from taxes on business premises in their areas

Generally voted for removing hereditary peers from the House of Lords

AGAINST

Generally voted against transferring more powers to the Welsh Assembly

Almost always voted against transferring more powers to the Scottish Parliament

INCONSISTENT

Voted a mixture of for and against a transparent parliament

Voted a mixture of for and against a wholly elected House of Lords

Miscellaneous

FOR

Generally voted for requiring the mass retention of information about communications

Consistently voted for stronger enforcement of immigration rules

Consistently voted for selling England’s state owned forests

Generally voted for culling badgers to tackle bovine tuberculosis

Consistently voted for the privatisation of Royal Mail

Almost always voted for restricting the scope of legal aid

Almost always voted for the policies included in the 2010 Conservative - Liberal Democrat Coalition Agreement

AGAINST

Generally voted against measures to prevent climate change

Generally voted against financial incentives for low carbon emission electricity generation methods

Almost always voted against slowing the rise in rail fares

Generally voted against restrictions on fees charged to tenants by letting agents

CV

The Secretary of State for Wales (15 Jul 2014 to 19 March 2016)

The Parliamentary Under-Secretary of State for Wales (Sep 2012 to Jul 2014)

The Lord Commissioner of Her Majesty’s Treasury (Sep 2012 to Jul 2014)

Assistant Whip (HM Treasury) (May 2010 to Sep 2012)

Opposition Whip (Commons) ( Jan 2009 to May 2010)

Member, Treasury Committee ( Nov 2008 to Feb 2009)

Member, International Development Committee (Nov 2007 to Jul 2009)

Member, Welsh Affairs Committee ( Jul 2005 to Dec 2007)

Entered the House of Commons on 5 May 2005 as Conservative MP for Preseli Pembrokeshire

Education

Tasker Milward School, Pembrokeshire. First-class degree in politics from Bristol University, and an MBA from London Business School.

Career outside politics

Before being elected to parliament, worked as a marketing consultant, for the National Council for Voluntary Youth Services and the London Chamber of Commerce and Industry. Chairman of governors of a large inner city primary school between 1998 and 2002. Patron of Pembrokeshire Mencap.

Personal life

Married to Béatrice, has 2 young children, enjoys rugby, mountain biking and tennis. Has run the London Marathon 3 times and enjoys cooking, playing guitar and learning French.