§ Mr. SpellarTo ask the Secretary of State for Defence, pursuant to his answer to the hon. Member for Worcester (Mr. Luff) of 1 March,Official Report, column 766, how many personnel will be eligible for the interest-free advance scheme; and if personnel made redundant between 1 March and 1 August will be eligible for the scheme. [19833]
§ Mr. SoamesSome 23 per cent. of Army and RAF personnel will qualify by age for the long service advance of pay scheme, but significantly fewer personnel are expected to join the scheme because the pattern of service in the Army and RAF promotes accompanied service and this can deter home ownership in some circumstances.
The Royal Navy has enjoyed the benefits of LSAP since 1963 and, because of the pattern of family separation which is inherent in a sea-going service, it has promoted a housing policy which does not differentiate between accompanied or unaccompanied service when ashore. The historical take-up rate of LSAP in the RN is approximately 40 per cent. of all eligible personnel, and represent an annual maximum uptake of 1,500 personnel. Although take-up figures can be only speculative, the RN trends, with the differing age qualifications and accompanied service preferences of the Army and RAF, would indicate an average of 1,200 new LSAP members each year. This would represent a threefold increase over those who have annually benefited from the married quarters discounted sales scheme.
Army or RAF personnel made redundant between now and 1 August 1996 will not be able to take advantage of the scheme. They will, however, still be able to apply to purchase a home under the married quarter discounted sales scheme, which will remain in force until 1 August 1996.