§ 3. Mr. Christopher Priceasked the Secretary of State for Defence what was the total sum paid to (a) officers, and (b) others ranks in educational allowances in the year 1979–80; and what is the average grossed up value of an allowance in each category.
§ Mr. HayhoeThe total sum paid in educational allowances in the year 1979–80 was £31.2 million, including some £9 million to cover claimants' tax liability. Of this sum, £21.7 million was paid to officers and £9.5 million to other ranks. Following a rate increase from April 1980, the average grossed value of an allowance is approximately £2,200 to an officer and £1,900 to an other rank.
§ Mr. PriceAre the figures taken into account when Forces pay is being considered? Is the intention to continue to 1027 index them fully for inflation at a time when the State education system is being cut by 9 per cent?
§ Mr. HayhoeThe figures are taken into account by the Armed Forces Pay Review Body. Indeed, proposals for some improvement in the boarding school allowance are under consideration by that body.
§ Mr. ViggersIs my hon. Friend aware that the educational allowance makes an important contribution to the families of all ranks? Is he satisfied with the manner in which the allowance is grossed up for tax purposes, because that can have an unfair result in some cases? If he is not satisfied, will he make a warlike approach to his right hon. Friend?
§ Mr. HayhoeThe grossing up is open to some criticism. Representations have been made on behalf of people who believe that they are adversely affected. In relation to the contribution that the boarding allowance makes to members of the Army generally, it is worth noting that about 35 per cent. of those involved are other ranks, compared with only 26 per cent. under the last Government three years ago.