Oral Answers to Questions

Richard Bacon Excerpts

Monday 18th January 2016 Commons Chamber

[Mr Brazier]

I do not accept that. The Major Projects Authority report to which the hon. Lady referred is more than a year old, and the figure that she identified as the target—35,000 trained reservists—must be reached by April 2019. We are moving fast in that direction.

[Mr Richard Bacon (South Norfolk) (Con)]

23. Given that the Self-build and Custom Housebuilding Act 2015 is now on the statute book, does my hon. Friend consider that one way to recruit additional reserves —and, indeed, other members of the armed forces—would be to create a help to build scheme, so that service families find it easier to obtain a piece of land and build a house?

[Mr Brazier]

I will pass my hon. Friend’s ingenious idea to colleagues and we will look at it for him.

Oral Answers to Questions

Richard Bacon Excerpts

Monday 14th July 2014 Commons Chamber

[Mr Francois]

When I served in the Territorial Army in the 1980s, I served on something called Exercise Lionheart in 1984. In those days, what was the Territorial Army had 75,000 trained men and women under arms, drawn from a smaller population. I have to believe that if we could achieve 75,000 then, we can get 30,000 trained men and women by 2018-19. We can do this, and I believe that we will.

[Mr Richard Bacon (South Norfolk) (Con)]

The Defence Reform Act 2014 requires the reserve forces and cadets associations to prepare an annual report on the state of the reserves, and the Secretary of State to publish it. Will my right hon. Friend confirm that that report was filed on time? When will he publish it?

[Mr Francois]

Shortly.

Armed Forces Pensions

Richard Bacon Excerpts

Tuesday 16th October 2012 Commons Chamber

[John Glen (Salisbury) (Con)]

The purpose of calling this evening’s debate is to bring to the Minister’s attention a group of former spouses who, due to miscalculations in their pension provision by the Ministry of Defence, now face very uncertain futures. It seems that there is a group of 126 women who have been affected by the mistake. I believe it right and proper for the MOD now to take the steps necessary to ensure that this does not happen again and to compensate the individuals affected, particularly where their financial situation and life circumstances have been substantively impaired.

Three constituents came to see me in March this year. In accordance with their wishes, I shall not be disclosing their names to the House. However, their experiences are fairly representative of the group of women affected. One individual, having made the difficult decision to divorce, asked for the details of her former husband’s pension pot from the SPVA—the Service Personnel and Veterans Agency, which administers military pensions—in March 2010. Her husband’s pension was in fact already in payment. The SPVA gave details and confirmed, both on the telephone and in writing, that my constituent would be able to take her pension from the age of 55 with no actuarial reduction being applied. Therefore, in April 2010 the judge was able to finalise her divorce, relying on the information provided by the SPVA, which had been confirmed in writing.

The pension for my constituent came into payment and she undertook a number of financial obligations, feeling certain of a definite and defined monthly income payment for the rest of her life. She bought a property and undertook renovations on it, as she sought to start her new life. It has since been discovered that in November 2010 the MOD was contacted by the Department for Work and Pensions and made aware that an error had been made in the way it had interpreted DWP legislation. It meant that actuarial reductions should have been applied to those former spouses who took a pension at the age of 55. However, none of the affected spouses was informed of the error, and their pensions continued to be paid from November 2010, when the MOD was first notified that an error had occurred, to spring 2012, when the MOD communicated the error to those affected and my constituent first approached me.

On 1 March 2012, 16 months after the mistake first came to light, my constituent was notified by phone that she would receive a reduction in her pension of over 40%, which was to take effect in three months’ time. A letter confirming that arrived a few days later, on 5 March. The stress and worry must have been unimaginable. Illness followed and she lost half a stone very quickly. She sold her car, as she was so worried about the reduction in her income and felt that she had to downsize her lifestyle rapidly. Obviously she also felt under an enormous degree of strain.

Then, two months later, on 13 May 2012, my constituent received a further communication from the SPVA informing her of another mistake, which meant that she would receive more than the reduced amount but still a 16% reduction on the amount on which her divorce settlement had been based, from which she had been receiving payments for the previous 18 months.

I am sorry to say that that individual is not an isolated example. A constituent of my hon. Friend the Member for South Norfolk (Mr Bacon), who is in his place this evening, had a similar experience. She took actuarial advice based on advice from the MOD before finalising the divorce, and acting on that advice, the judge awarded a clean break settlement comprising 40% of her former husband’s pension pot. On the basis of that guaranteed income, she secured a mortgage. She now finds herself with a 20% reduction in her income due to the miscalculation and is looking at losing her house. She has been in hospital for emergency operations and has been treated for stress, and she is now on sleeping tablets.

[Mr Richard Bacon (South Norfolk) (Con)]

I am grateful to my hon. Friend for raising this subject and for mentioning my constituent. Does he agree that although one can understand that the principles of good administration require that public authorities such as the Ministry of Defence and the SPVA do not make irregular payments, they also require public authorities to be held to their promises, especially when they have created a legitimate expectation upon which people have acted, as in this case? Does he therefore agree that the right route in these circumstances is generous compensation?

[John Glen]

Absolutely. I fully endorse what my hon. Friend says, and I will come on to some specific points to which I hope the Minister will respond.

In what is an exceedingly traumatic time for anyone—going through a divorce and facing up to a new life—it is absolutely imperative that any agency of a Government Department gets the facts right first time, particularly when dealing with issues that have painful and far-reaching implications. My constituent has told me that since the mistakes have been known, the SPVA, to its credit, has done its best to provide as much information as it can, for which she is sincerely grateful. Information is one thing, but we now need action, leading to justice.

The bottom line is that former husbands and wives, the courts, actuaries and mortgage companies all relied on the information provided to them by the MOD. They had no reason to believe it to be in any way incorrect, particularly in my constituent’s case, in which the SPVA was asked directly whether there would be an actuarial reduction if she took her pension at 55. The SPVA wrote back in black and white on 6 April 2010 to say that that would not be the case.

The mistakes have had serious repercussions for a number of divorce settlements, which were decided on the basis of erroneous information. That means that the lifestyles that the judges thought it fair for both parties to have after the divorce are now not sustainable. In most cases of a so-called clean break divorce, the court will not hear the divorce case again, so the former wife—it usually is the wife—has no legal recourse. It may be possible to go back to court under ancillary relief proceedings to re-examine the finances, but the former husband may have to agree to that. Even if a court agreed to a rehearing, which is expensive in itself, many husbands would not, quite rationally and understandably on one level.

I have figures provided by an actuary from Actuaries for Lawyers, specialising in armed forces pensions, who has estimated what my constituent’s loss will be over her expected life span. I would be happy to let the Minister see those figures, and the actuary himself would be happy to meet him and representatives of the relevant agency in the Department to explain how he arrived at them.

This evening, I would like to ask the Minister a number of questions. When exactly was the mistake made? Who notified the SPVA of the mistake? Who is accountable for it? I do not wish to have a witch hunt, but as yet I have not received a satisfactory account of why the mistake was made, and I am not yet confident that it will not happen again. I also want to know what actions the Minister and SPVA officials have taken, or will take, to ensure that there is no recurrence of the same mistake.

My most pressing question is why it took so long for the MOD to contact those affected by the error. There was a 16-month window from when the mistake was discovered to the point at which those affected were contacted. That wait was unacceptable. The strategic defence and security review has been completed and, from my recent Defence Committee experience, I know that many complex changes have taken place within the MOD, but the SPVA still had a duty of care to get things right. That is its job. The argument that it “had a lot on” cannot be used.

As I have tried to stress, this error has had a huge effect on the victims. Some have become ill, and chronic illness has ensued. Some have found it hard to cope with the paperwork involved as they try and get to the bottom of what has happened. Some are facing the risk of repossession. Many have committed themselves to expenses that they cannot now maintain, or would not have entered into had they known what was going to happen. Many face adjustments to their living arrangements that they would not have had to contemplate, had their settlements been agreed on the correct basis.

I cannot do justice tonight to the misery and upset of so many families, but I hope that the Minister will reflect fully on the circumstances of my constituent and others. I want him to give a categorical assurance that compensation will be awarded, not only to those who are able to challenge this decision, through me or other MPs, but to the whole group of women involved. My constituent was awarded the well-meant but token amount of £250 to cover the “inconvenience and uncertainty”, in a letter dated 13 September 2012. However, not everyone has been given that. Why not? Did she receive it just because she was able to pursue the MOD? Some others have not been strong enough to do so, perhaps because they have been ill or simply not as persistent. There is a principle at stake here. The MOD made a mistake and the miscalculations directly affected the choices made by this group of women and their former partners.

I am aware, from previous correspondence I have had with the MOD on this issue, that a hardship fund is available to those in need. That is welcome, but it does not address the real issue, which is one of justice. The MOD ought to honour the assumptions made by the court, which decided on what it thought to be a fair and just distribution of assets based on figures given to it by the SPVA. That decision has now been compromised through errors made not by the individuals concerned but by the MOD.

If we assume an average shortfall of £50,000 per person over their lifetime, we find that the MOD would need to find approximately £6 million in compensation. Given the lifetime of service that those spouses have given through supporting their husbands and, in some cases, forfeiting their own chances of a career through the frequent relocations necessary for many service households, I hope that the Minister will order full and complete compensation from the hardship funds. That should include all reasonable legal costs, and it would be helpful if the recoverable costs could be defined.

The Minister should also take whatever steps are necessary to establish where the error was made and to ensure those responsible are retrained to make certain that this does not happen again. This Government have taken great steps with the military covenant during their time in office, but this matter tests both the letter and the spirit of the covenant. I have the highest personal respect for the Minister. He has been in post for only just over 40 days, but he has already cultivated widespread respect among many veterans’ organisations. I now look forward to hearing his sympathetic and effective response.

RAF Marham

Richard Bacon Excerpts

Thursday 11th November 2010 Commons Chamber

[Elizabeth Truss]

That is exactly how I feel. The 2 Squadron recently returned to a heroes welcome in Swaffham, and I know how important it is for the local community and for those people who are based at RAF Marham that this decision be taken properly and rationally. We cannot play politics with people’s jobs and with our nation’s defences.

Among the key features of RAF Marham are the engineering and maintenance facilities based there. There is a high level of expertise, on the industry side and on the military side, which has taken years to develop. Indeed, there were previously eight separate locations for the maintenance and engineering facilities, but they have been consolidated at RAF Marham. I understand that those facilities are one third more efficient than their US counterparts in manpower terms. Over the years, they have saved billions of pounds for the Exchequer. To move those facilities elsewhere would cost at least £50 million, simply because of the levels of hardware and personnel involved.

[Mr Richard Bacon (South Norfolk) (Con)]

My hon. Friend visited RAF Marham with me earlier this year. Will she reflect on what we were told by BAE Systems and Rolls-Royce engineers about the specialist layout for depth maintenance at Marham, which cannot be replicated elsewhere because of the size of the facilities?

--- Later in debate ---

[Elizabeth Truss]

I entirely agree with my hon. Friend about the detrimental effect of the closures that we have already seen in Norfolk and East Anglia. I should like the Minister to consider the future of RAF Marham when the Tornado is retired. My understanding of the 2005 report on the joint strike fighter is that RAF Marham was considered a suitable option for the JSF. As the equipment is modified and—I am given to understand—the noise levels would be lower, it might be a potential future location, so we could continue building on our excellent engineering and maintenance facilities.

[Mr Bacon]

On my hon. Friend’s point about the JSF, because Marham has an extra-long runway it could be used by a wide variety of aircraft, not just the JSF. Also, when we were there, we saw an enormous amount of expensive work, paid for with taxpayers’ money, being done to refurbish the runway.

[Elizabeth Truss]

That is right, and my hon. Friend makes a very good point about the amount of taxpayers’ money that has already been invested. I agree that that would be wasted if we were to give up on even an alternative Ministry of Defence use for Marham, which is so specialist in the RAF. That is an extremely important point.

We have had a long discussion about the economic and military value of RAF Marham, and I thank my colleagues for their interventions, but I also want to talk about its economic value locally and the key factors for west Norfolk, about which I know my hon. Friend the Member for North West Norfolk (Mr Bellingham), who is present today, is also well aware.