Speeches

Kirsten Oswald – 2016 Parliamentary Question to the Ministry of Defence

The below Parliamentary question was asked by Kirsten Oswald on 2016-06-08.

To ask the Secretary of State for Defence, what assessment he has made of the potential effect on morale among members of the armed forces of the transition from Pay 2000 to the new Pay 16 pay structure.

Mark Lancaster

The new Pay 16 structure was specifically established in response to Service personnel criticisms of the old pay model. The Ministry of Defence (MOD) has developed the new pay model as a simpler, more transparent system which provides Service personnel with greater pay predictability. It addresses some of the concerns about the previous pay model reported by personnel through both the Service Complaints system and the Armed Forces Continuous Attitude Survey (AFCAS) and in feedback from the Armed Forces Pay Review Body (AFPRB). I fully expect these changes to be positive for morale overall.

Many personnel will experience an increase in pay as a result of the new pay model, and no one will take a cut in core pay on implementation. We have taken steps to ensure that personnel are aware of the range and nature of the pay reforms that began on 1 April 2016 and comprehensive internal communications activity has been undertaken to explain the changes. This included Departmental guidance to help personnel understand their new pay statement and any changes. Personnel, including those under pay protection, continue to remain eligible for any Government-approved pay award. Pay protection has been put in place to ensure that no one will take a pay cut on implementation of Pay 16 and this arrangement will exist for at least the first three years to ensure that no one is disadvantaged.

The new pay model is not designed as a cost saving exercise, but is a rebalancing of pay to make more efficient and effective use of the Armed Forces pay bill; the AFPRB will continue to recommend pay rates for all personnel. As we go forward the Service Complaints Process and AFCAS will be primary sources which inform our assessment of the benefits realised through the pay reforms.