Armed Forces Update

Statement

I am today announcing the Government’s decision on pay for the Armed Forces for 2024-25.

Our Armed Forces are vital to protecting the nation, supporting our allies, and meeting operational commitments. The Government recognises that our Service personnel make extraordinary sacrifices as they continue to work tirelessly at home and abroad; and we are proud of their professionalism and bravery.

These are serious times – with war in Europe, conflict in the Middle East, growing Russian aggression, increasing global threats. It is more important than ever that we deliver an attractive and affordable offer to our Armed Forces. But this Government has inherited significant budget and workforce challenges while a crisis in recruitment, and cost of living pressures continue to impact Service Personnel and their families.

This Government is committed to renewing the nation’s contract with our service men and women. That’s why it is even more important than ever that we are investing in our people.

We have already taken steps to support our Armed Forces personnel. The Prime Minister launched a Strategic Defence Review (SDR) to place people at the heart of future defence plans, affirming the Government’s commitment to making “sure our hollowed out armed forces are bolstered and respected”. In the recent King’s Speech, the Government also announced an Armed Forces Commissioner Bill to establish an independent champion to improve service life for personnel and their families.

Along with various forms of support, accommodation, and pensions, pay plays a vital role in rewarding our people for the work they do. To recognise the commitment and service of our Armed Forces personnel, we are announcing today that we will be accepting in full the 2024 Pay Award recommendations made by the independent Armed Forces’ Pay Review Body (AFPRB) and Senior Salaries Review Body (SSRB). This year’s award provides a targeted and significant pay uplift for new recruits alongside a large headline increase of 6%.

This Government has prioritised our Service men and women, despite the significant affordability challenges and scale of fiscal inheritance we have inherited – as outlined by the Chancellor.

We continue to appreciate and value the AFPRB’s and SSRB’s expert advice and insight and the contribution they make on behalf of Service personnel. The AFPRB report has been laid before the House today and published on GOV.UK. The SSRB 2024 report, which considers pay for our senior military of two-star rank and above, has been laid today by my colleagues in the Cabinet Office.

Today’s award, which will benefit the whole of the Armed Forces, will help to ensure that we recruit and retain the high calibre of people that we need to keep our country safe. It is an important step in making Britain more secure at home and strong abroad.

The Recommendations:

The SSRB has recommended that all members of the senior military (two-star rank and above), should receive a 5% consolidated increase to base pay. They have also recommended no change to the current pay differential arrangements for senior Medical and Dental Officers. The Government is accepting these recommendations in full.

The AFPRB’s main pay recommendation was for a 6% pay award to members of their remit group at pay point OR2-04 and above from 1 April 2024; that the rates of base pay at pay points OR2-02 and OR2-03 increase to £25,864 from 1 April 2024, which equates to a 6% uplift on 1 April 2023 rates; that the rates of base pay at pay point OR2-01 remain at £25,200 as implemented from 1 April 2024, a 7.25% increase on 1 April 2023 rates; and that the rate of Initial Pay be increased to £25,200 from 1 April 2024. The Government is accepting these recommendations in full.

The AFPRB has also recommended rises and changes to other targeted forms of remuneration, and increases to accommodation charges, which have all been accepted. Where applicable, these rate changes will also be backdated to 1 April 2024.

Accepting these recommendations, represents an annual increase of c.£2,800 in the nominal ‘average’ salary in the Armed Forces as well as an annual increase of c.£1,880 in the starting salary for an officer. It also ensures that our most junior sailors, soldiers and aviators continue to receive a living wage and brings the starting salary in our Armed Forces into line with the National Living Wage for the first time, making it more attractive to a wider range of potential recruits to help address recruitment challenges:

• The starting rate of pay for Other Ranks after initial training increased to £25,200 on 1 April 2024 to ensure that they received National Living Wage increases at the same time as other public sector workforces and provided a pay rise of c.£1,700 or 7.25% for around 6,700 personnel.

• New recruits are currently paid a new entry rate for the six months or so they spend in initial training. As a result of this award, this rate will also increase to £25,200 from 1 April 2024.

The cost of this pay award will be funded through reprioritisation and savings measures, including savings generated by reducing spend on consultancy. HM Treasury have been clear that the Government’s fiscal plans will be set out at the Budget.

The complete recommendations of the AFPRB for Pay Round 2024 are as follows:

Main pay award

• Recommendation 1: That rates of base pay increase by 6% for members of their remit group at pay point OR2-04 and above from 1 April 2024.
• Recommendation 2: That rates of base pay for members of their remit group at pay point OR2-01 remain at £25,200, as already implemented from 1 April 2024, a 7.25% increase on 1 April 2023 rates.
• Recommendation 3: That rates of base pay for members of their remit group at pay points OR2-02 and OR2-03 increase to £25,864 from 1 April 2024. This equates to a 6% uplift on 1 April 2023 rates.
• Recommendation 4: That the rate of Initial Pay be increased to £25,200 from 1 April 2024.

Medical and Dental Officers.

• Recommendation 5: The accredited Medical and Dental Officer pay scales be increased by an additional three levels, up to increment level 35.
• Recommendation 6: The removal of the policy bar to incremental progression at level ten on the non-accredited pay scale for OF3 Medical and Dental Officers.
• Recommendation 7: That rates of base pay should increase by 6% for all ranks within the Medical and Dental Officer cadre from 1 April 2024.
• Recommendation 8: That the value of Defence Clinical Impact Awards should increase by 6% from 1 April 2024.
• Recommendation 9: Rates of Trainer Pay should increase by 6% from 1 April 2024.

UK Special Forces.

• Recommendation 10: Agreed in principle to the replacement of specified Special Forces’ Recruitment and Retention Payments with Special Forces Supplement Pay effective from 1 April 2026.

Submarine Remuneration Review.

• Recommendation 11: That ‘Submarine Pay’ should replace Recruitment and Retention Pay (Submarine) and the Submarine Golden Hello with transition commencing from 1 April 2026.
• Recommendation 12: That ‘Nuclear Skills Pay’ should replace Recruitment and Retention Pay (Nuclear Propulsion), Recruitment and Retention Pay (Weapon Engineer Submarine) and Recruitment and Retention Pay (Engineer Officers Supplement) with transition commencing from 1 April 2025.
• Recommendation 13: That a Submarine Environmental Allowance should replace Recruitment and Retention Pay (Submarine Supplement) with transition commencing 1 July 2024.
• Recommendation 14: That a Retention Payment of £25,000 should be payable between eight and twelve years’ qualification as a Submariner with effect from 1 April 2025.

Defence Aircrew Remuneration Review.

• Recommendation 15: Agreed to the implementation of the Ministry of Defence’s pay proposals for aircrew with effect from 1 April 2025. These proposals comprise: Three Aircrew Professional Pay Spines; Aircrew Supplements; Specialist Skill Recognition; and the ‘Box Option’.

Unified Career Management Special Intelligence.

• Recommendation 16: The introduction of a new Special Intelligence skills-based payment for Unified Career Management Special Intelligence cadre personnel.

Recruitment and Retention Payments.

• Recommendation 15: That all rates of Recruitment and Retention Payments, except (Special Intelligence), should increase by 6% from 1 April 2024. The rates of Recruitment and Retention Payment (Special Intelligence) remain unchanged.

Volunteer Reserves Training Bounty.

• Recommendation 16: That rates of the Volunteer Reserves Training Bounty should increase by 6% from 1 April 2024.

Compensatory Allowances.

• Recommendation 19: That all rates of compensatory allowances should increase by 6% from 1 April 2024.

Accommodation charges.

• Recommendation 20: That Service Families Accommodation Combined Accommodation Assessment Band A charges should increase by 6% from 1 April 2024. This will affect the rents of lower bands differently, as they are set in descending increments of 10% of the Band A rate.
• Recommendation 21: That furniture charges (for all Service Families Accommodation types) should increase by 2.4% (in line with the Consumer Price Index furniture and furnishing element as at November 2023) from 1 April 2024.
• Recommendation 22: That single Living Accommodation rental charges for Grade 1 should increase by 6% from 1 April 2024, and increases of 4% to Grade 2, 2% to Grade 3 and no increase to Grade 4 accommodation.

Recommendation 23: That, from 1 April 2024, charges for standard garages and carports should increase by 6%, with no increase for substandard garages and substandard carports.

(Source:  https://questions-statements.parliament.uk/written-statements/detail/2024-07-29/hcws37)