Armed Forces Workforce

John Healey Excerpts

Thursday 22nd May 2025 Written Statements

[The Secretary of State for Defence (John Healey)]

I am today announcing the Government’s decision on pay for the armed forces for 2025-26.

Our service personnel make extraordinary sacrifices and work tirelessly to keep Britain secure at home and strong abroad. This Government and the nation are proud of their professionalism and dedication.

We are facing a new age of insecurity, with war in Europe for the first time in years, growing Russian aggression, and increasing global threats. Within three weeks of taking office, we therefore launched a root-and-branch strategic defence review to assess the capabilities we need to meet the challenges and opportunities of the next decade. The Prime Minister has announced the largest sustained increase to defence spending since the cold war, rising to 2.5% of GDP in 2027, and to 3% when economic and fiscal conditions allow, underlining this Government’s commitment to our national security. That is why it is more important than ever that we continue to invest in our people.

Since coming into office in July, we have stepped up support for our armed forces and their families. Last year we confirmed one of the largest pay rises for service personnel in over 20 years. This substantial pay deal ensured that all those choosing a full-time career in the armed forces were paid the national living wage for the first time.

We have also announced new financial retention packages to help tackle the long-standing recruitment and retention crisis we inherited. To improve living conditions in service accommodation, we have introduced a new consumer charter to provide homes fit for the heroes who serve our nation. And we have taken steps to establish in law the first ever armed forces commissioner, who will act as a strong, independent voice for personnel and their families and have powers to hold the Government and single services to account.

Along with subsidised accommodation, health and childcare, a generous pension scheme, and world-class training, education and skills development, pay plays a key role in rewarding service personnel for the extraordinary sacrifices they make. To recognise that commitment, I am announcing today that we will be accepting in full the 2025 pay award recommendations for armed forces remuneration made by the independent Armed Forces’ Pay Review Body and Senior Salaries Review Body.

We continue to value the AFPRB’s and SSRB’s independent expert advice and insight, and the contribution the collective membership makes on behalf of service personnel. The AFPRB report has been laid before the House today and published on gov.uk. The SSRB 2025 report, which considers pay for our senior military officers of two-star rank and above, has been laid before Parliament today by my colleagues in the Cabinet Office.

Today’s awards, which will benefit the whole of the armed forces, reflect the value that we place upon our military community. We are renewing the nation’s contract with those who serve as part of our plan for change.

The recommendations

The SSRB has recommended that all members of the senior military (two-star rank and above), should receive a 3.75% 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 are accepting these recommendations in full.

The AFPRB’s main pay recommendation was for a 4.5% pay award for all members of their remit group from 1 April 2025. The Government are accepting these recommendations in full.

The AFPRB has also recommended rises and changes to other targeted forms of remuneration, and increases to some accommodation and related charges, which have all been accepted.

Accepting these recommendations represents an annual increase of circa £2,100 in the nominal “average” salary in the armed forces, as well as an annual increase of c.£1,500 in the starting salary for an officer. It also ensures that our most junior sailors, soldiers and aviators who choose a full-time career in the armed forces continue to receive the national living wage. The starting salary for other ranks will increase to c.£26,334, providing an annual increase of c.£1,200 for around 7,800 personnel. This means armed forces personnel have received a cumulative pay award of 10.5% (8.75% for senior officers) since July 2024.

Although defence spending will be increasing, this is not just about how much we spend on defence, but how well we spend it. For that reason, the Prime Minister has announced that we will publish a defence reform and efficiency plan. This will set out how we are redesigning our organisation, driving productivity across the business, overhauling our processes and reforming our approach to some of our biggest areas of spend. The cost of this pay award will also be factored into our capability planning following the strategic defence review and spending review, to ensure affordability within the overall defence programme.

The complete recommendations of the AFPRB for pay round 2025 are as follows:

Main pay award:

Recommendation 1: That rates of base pay increase by 4.5% for all members of their remit group from 1 April 2025.

Medical and dental officers:

Recommendation 2: That rates of base pay for all ranks within the medical and dental officer cadre should increase by 4.5% from 1 April 2025.

Recommendation 3: The removal of the OF5 higher medical management pay spine and endorse renaming the OF6 higher medical management pay spine as suitable for all substantive OF6 medical and dental officers.

Recommendation 4: That reserve medical and dental officers at OF5 and OF6 should be paid in line with their regular medical and dental officer counterparts.

Recommendation 5: That the value of the medical and dental officers’ golden hello should increase to £100,000 from 1 April 2025 for payment to consultants and registrars (specialist training, year three upwards) in specialisms with a declared delivery workforce capability gap.

Recommendation 6: That the value of defence clinical impact awards should increase by 4.5% from 1 April 2025.

Recommendation 7: That rates of trainer pay and associate trainer pay should increase by 4.5% from 1 April 2025.

Bespoke pay arrangements:

Recommendation 8: That all rates of pay on the veterinary officers’ pay spine should increase by 4.5% from 1 April 2025.

Recommendation 9: That all rates of pay on the chaplains’ pay spine should increase by 4.5% from 1 April 2025.

Recommendation 10: That all rates of pay on the military provost guard service pay spine should increase by 4.5% from 1 April 2025.

Recruitment and retention payments:

Recommendation 11: That all rates of all recruitment and retention payments should increase by 4.5% from 1 April 2025.

Skills and supplement payments:

Recommendation 12: That all rates of the cyber skills payment should increase by 4.5% from 1 April 2025.

Recommendation 13: That all rates of the engineer supplement payment should increase by 4.5% from 1 April 2025.

Financial incentives:

Recommendation 14: The introduction of two retention payments for Royal Navy catering services’ personnel for three years from 1 April 2025: £10,000 at four years’ service, attracting a three-year return of service; and £15,000 at two years after promoting to OR4, attracting a further three-year return of service.

Volunteer reserves training bounty:

Recommendation 15: That rates of the volunteer reserves training bounty should increase by 4.5% from 1 April 2025.

Compensatory allowances:

Recommendation 16: The introduction of an afloat environmental allowance.

Recommendation 17: That all rates of compensatory allowances should increase by 4.5% from 1 April 2025.

Accommodation and related charges:

Recommendation 18: That service families’ accommodation rental charges for combined accommodation assessment system bands A to F should increase by 7.6%. There should be no increase in the current rates of charges for bands G and below. These increases are not to be subject to any backdating.

Recommendation 19: That there should be no increase in the rates of furniture charges.

Recommendation 20: That single living accommodation rental charges for grade 1 should increase by 7.6%, with increases of 5.1% for grade 2, 2.5% for grade 3 and no increase to grade 4 accommodation. These increases are not to be subject to any backdating.

Recommendation 21: That charges for standard garages and carports should increase by 7.6%. These increases are not to be subject to any backdating. There should be no increase in the charges for substandard garages and substandard carports.

For senior military officers only, the SSRB have recommended the following:

Recommendation 5: all members of the senior military (2-star rank and above), including medical officers and dental officers, should receive a 3.75% consolidated increase to base pay from 1 April 2025.

Recommendation 6: no change to the current pay differential arrangements for medical officers and dental officers (MODOs):

2-star MODOs should continue to be paid 10% above the base pay at the top of the MODO 1-star scale, plus X-factor.

3-star MODOs should continue to be paid 5% above the base pay at the top of the MODO 2-star scale, plus X-factor.

[HCWS661]