§ Mr. Banksasked the Secretary of State for Defence whether allowances paid to 666W Service men to compensate for, or assist towards, expenses incurred may be adjusted to take account of the true costs involved and fall outside the Government's guidelines on pay.
§ Mr. MulleyAs my right hon. Friend the Minister of State for Defence stated on 7th February—[Vol. 943, c. 517]—in answer to an earlier Question from the hon. Member, the rates of allowances which are paid to Service men to compensate or assist towards expenses incurred are reviewed from time to time to ensure they meet their objective. The rates of such compensatory allowances are fixed generally on the basis of the average of costs likely to be incurred. Thus actual costs arising in particular circumstances may differ from the rate of allowance applicable at any one time.
Increases which do no more than reflect higher costs may be applied outside the Government's guidelines on pay.
§ Mr. Banksasked the Secretary of State for Defence whether the Armed Forces Pay Review Body has authority to examine allowances paid to Service men and to make such recommendations as it thinks fit.
§ Mr. MulleyThe Review Body on Armed Forces Pay was appointed to advise the Prime Minister on the pay and allowances of the Services: and as an independent body it is free to make such recommendations on allowances as it considers appropriate.