Question to the Ministry of Defence:

To ask the Secretary of State for Defence, how many Army Air Corps pilots have resigned due to his Department's plans to recover over-payment of flying pay; how many of those pilots (a) are currently serving and (b) have retired; what assessment he has made of the effect on (i) staffing levels and (ii) the effectiveness of that corps; whether any of those pilots affected have been subject to disciplinary proceedings due to non-repayment of such over-payments; what the value is of such over payments; over what period such over-payments relate to; and if he will make it his policy to not recover such over-payments.

I refer the hon. Member to the response given by my noble Friend, the Minister of State for Defence, the Rt Hon. Earl Howe, to the noble Lord, the Rt Hon. the Lord Trefgarne, in the House of Lords (Official Report, column 2379). In addition to this I can confirm that an overpayment of recruitment and retention pay amounting to £829,000 in total was made to 146 Army aircrew personnel over a number of years. Of the 146 personnel affected, 97 are still serving. We have apologised and explained the circumstances of the overpayments to all affected. Each individual has the opportunity to object, appeal, and if necessary submit a Service Complaint against recovery action receiving individual and tailored advice as required. Since notification of the recovery action, the Army Air Corps is not aware of any resignations as a direct result. The error was caused by differing interpretations and use of the Recruitment and Retention Pay (Flying) policy across the Army Air Corps. As such there are no disciplinary issues associated with the overpayment.

Although there are manning pressures within the Army Air Corps they are able to meet all current commitments. In recognition of these pressures a Financial Retention Incentive was introduced in 2015 and 81% of the eligible personnel have taken up this offer resulting in a stabilisation of Army Air Corps pilot manning levels.

In accordance with HM Treasury Policy and Guidance, pay has been reverted to the correct levels and recovery action has now begun. This guidance requires that efforts are made to recover incorrect payments in all cases across the public sector. I am satisfied that this is the correct approach to take under these circumstances and reflects the previous recovery of overpayments within the Armed Forces.