§ Mr. Gryllsasked the Secretary of State for Defence whether the current redundancy scheme for the Armed Forces has been adjusted to take account of inflation.
§ Mr. Robert C. BrownYes. As was explained in Annex H to the Statement on the Defence Estimates 1975 (Cmnd. 5976), compensation for those made redundant takes the form of a lump sum special capital payment which is graduated according to length of past service and expectation of future service and is expressed as so many months' military salary. As Service pay is increased, so is the value of the special capital payment. Accordingly, the increase in Armed Forces pay with effect from 1st April 1976 which was announced by the Prime Minister on 3rd May 1976 —[Vol. 910, c.223–41]—will be reflected in the level of special capital payment for those made redundant on or after 1st April 1976.