Armed Forces: Personnel

Lord Craig of Radley Excerpts

Monday 23rd April 2012 Grand Committee

[Lord Craig of Radley]

My Lords, the House should be most grateful to the noble Baroness, Lady Dean, for bringing this topic to attention. Her experience of the Armed Forces’ Pay Review Body was extensive, both as a member in 1993-94 and as the chair from 1999 to 2005. The Minister and Government should pay most careful attention to her remarks and criticisms, and those of other noble Lords who spoke. I will add my slant to the thrust of their remarks.

Noble Lords will recall that the early 1970s were a time of acute national economic difficulty. A series of government steps such as the pay and prices code and the Counter-Inflation Act 1973 were applied nationwide. Looking at the Government’s strictures on public sector pay, have we not all been here before? However, for the Armed Forces of today, things are not as they were then. Experiences of dealing with the Cold War and the threat from the Soviet Union are far removed from the expensive and extended expeditionary warfare of today, in which large numbers of an ever dwindling cohort of service men and women are now involved, at greater risk of being killed or severely wounded or of being long separated from their families.

This significant change was recognised by the previous Government in their Command Paper, The Nation’s Commitment: Cross-Government Support to our Armed Forces, their Families and Veterans, and by this Government with the passage into law of the Armed Forces Covenant last autumn. That special recognition of the distinctive nature and value to the nation of the Armed Forces receives scant attention in this year’s AFPRB report. The Government’s across-the-board imposition of pay freezes in the public sector treats service personnel once more—as was the practice in the 1970s and 1980s—on a par with the rest of the public sector. However, it was the prime thrust of the Armed Forces Covenant and the previous Government’s White Paper that the services and their families were distinct from the rest of society and merited preferential treatment.

As this year’s AFPRB report makes clear, far from being independent and able to make its recommendations to the Prime Minister, the board has been directed by Ministers to observe the public sector pay restraints. This seems somewhat at odds with the response that I got to a recent Written Question about the Government’s attitude to the AFPRB. I asked the Government whether it was part of their commitment to the military covenant to implement the recommendations of the Armed Forces’ Pay Review Body in full. Their reply stated:

“The Government believe that the recommendations of an independent body such as the Armed Forces Pay Review Body (AFPRB) should constitute an integral part of the process used to determine the pay of the Armed Forces.”—[Official Report, 10/2/12; col. WA 113.]

That hardly describes the process followed this year and is some way, at least, from the assurances given by successive Governments in the past that the independent review body’s recommendations would be accepted unless there were clear and compelling reasons for not doing so. It would have been a more independent review if the body, after taking account of how comparators were faring, had been freer to reflect the increasing pressures of service life. The board stated:

“The Chancellor’s announcement in November 2011 of two further years of public sector pay restraint, with average increases (excluding increments) capped at one per cent, disappointed Service personnel who had made clear their expectation that we”—

the board—

“would return to making recommendations in the normal way following the pay freeze. We emphasised to the Secretary of State during oral evidence that this would be of great concern to our remit group and pressed him on whether there should be special consideration for the Armed Forces”.

I hope that the Minister will say something about that. The Board has perforce danced to the Government’s economic tune.

What gets overlooked in these immediate restrictions on pay and increases in charges is the longer-term impact on an individual’s financial circumstances. The baseline for calculating remuneration increases in future years has been debased and lowered while that for charges has been raised. As we heard from a number of noble Lords, at this sensitive time for morale and motivation in the services, the importance of treating service men and women—as both this Government and the previous one set out in statue and White Paper—is critical. Positive action, not vapid assurances that “we are all in this together”, is required to sustain the calibre of the forces that the nation must have to defend its interests.