§ Dr. David ClarkTo ask the Secretary of State for Defence what savings will result from the decision to award pay rises to service personnel in two stages; and if he will make a statement.
§ Mr. HanleyThe cost in 1994–95 of implementing in full the recommendations of the Armed Forces Pay Review Body from 1 April 1994, which were higher than for any other of the report groups, would be some £206,000,000. Staging of the award with all personnel receiving an increase of 2.7 per cent. on 1 April and the balance of the award on 1 January 1995, is estimaed to cost £166,000,000 in 1994–95. The saving is therefore £40,000,000.
§ Dr. David ClarkTo ask the Secretary of State for Defence (1) what plans he has to review pay, allowances, and terms of employment for service personnel; and if he will make a statement;
(2) what plans he has for the appointment of an independent body who will review pay, allowances, and terms of employment for service personnel; and if he will make a statement.
§ Mr. HanleyIn the light of changes in military commitments and deployment patterns, plans are in hand for a major independent review of service career and manpower structures and terms and conditions of service, to ensure that we have arrangements which are appropriate to the early part of the 21st century. We envisage that a review team comprising an independent Chairman and some three or four independent members should undertake such a study, which is expected to last about a year. My right hon. and learned Friend the Secretary of State for Defence, hopes to make appointments to the team shortly. The Armed Forces Pay Review Body will separately make recommendations to my right hon. Friend the Prime Minister in the normal way on the levels of service pay in 1995–96.