§ 38. Mr. Freudasked the Secretary of State for Defence whether he is satisfied that local allowance for Service men overseas accurately reflects their extra expenditure incurred.
§ Dr. GilbertFor reasons given by my right hon. Friend the Secretary of State for Defence in answer to a question by the hon. Member for Beckenham (Mr. Goodhart) on 25 July 1978, we have made no changes in local overseas allowance rates (LOA) since October 1977 except where the Forces' fixed rates of exchange have been adjusted.—[Vol. 954, c. 1353–4.]
This standstill has been generally beneficial to those serving overseas, but I am aware that there are some areas where the allowance has not kept pace with local living costs. We shall give these areas priority when reviews of the rates are resumed.