§ Sir Ian Orr-Ewingasked the Secretary of State for Defence what extra incentives are being offered to encourage Servicemen to retire before the expiry of their normal period of service.
§ Mr. HattersleyI assume that the question refers to the compensation payable when Servicemen become redundant and leave the Forces before expiry of their normal period of service. The redundancy compensation scheme instituted in 1967 provides for tax-free lump sum payments plus, in the case of other ranks, an addition to any pension and terminal grant payable. Increases in these lump sum payments are now being calculated, consequent on the introduction, in April next, of the new pay structure announced in the House on 25th February, 1970.—[Vol. 796, c. 1200–7.]