Armed Forces’ Pay Review Body

1 Armed Forces Pay Review BodyFiftieth Report 2021 Chair: Peter Maddison, QPMCP 546 Armed Forces Pay Review BodyFiftieth Report 2021 Chair: Peter Maddison, QPMP resented to Parliament by the Prime Minister and the Secretary of State for Defence by Command of Her MajestyOctober 2021CP 546 Crown copyright 2021 This publication is licensed under the terms of the Open Government Licence except where otherwise stated. To view this licence, visit we have identified any third party copyright information you will need to obtain permission from the copyright holders publication is available at enquiries regarding this publication should be sent to us at 978-1-5286-2775-7 CCS0221021780 / E02682344 10/21 Produced by the APS in the UK by HH Associates Ltd on behalf of the Controller of Her Majesty s Stationery Forces Pay Review BodyTERMS OF REFERENCEThe Armed Forces Pay Review Body provides independent advice to the Prime Minister and the Secretary of State for Defence on the remuneration and charges for members of the Naval, Military and Air Forces of the reaching its recommendations.

2 The Review Body is to have regard to the following considerations: the need to recruit, retain and motivate suitably able and qualified people taking account of the particular circumstances of Service life; government policies for improving public services, including the requirement on the Ministry of Defence to meet the output targets for the delivery of departmental services; the funds available to the Ministry of Defence as set out in the government s departmental expenditure limits; and, the government s inflation Review Body shall have regard for the need for the pay of the Armed forces to be broadly comparable with pay levels in civilian Review Body shall, in reaching its recommendations, take account of the evidence submitted to it by the government and others.

3 The Review Body may also consider other specific issues as the occasion and recommendations should be submitted jointly to the Secretary of State for Defence and the Prime members of the Review Body are:Peter Maddison QPM (Chair) David Billingham1 Brendan Connor OBE JP DL Jenni Douglas-Todd William Entwisle OBE MVO Kerry Holden Professor Ken Mayhew Julian Miller CB Paul Moloney2 Dougie Peedle3 The Secretariat is provided by the Office of Manpower David Billingham was appointed by the Secretary of State for Defence as a member of the AFPRB from February Paul Moloney was appointed by the Secretary of State for Defence as a member of the AFPRB from May Dougie Peedle was appointed by the Secretary of State for Defence as a member of the AFPRB from May Terms of Reference.

4 Iii Glossary of Terms .. vii Summary .. xiChapter 1 Introduction .. 1 Introduction .. 1 Last year s Report .. 1 Context for this year s Report .. 1 Our evidence base .. 2 Our 2021 Report .. 2 Chapter 2 Context and Evidence .. 5 Introduction .. 5 General context .. 5 MOD evidence on strategic management .. 5 Visits .. 6 Economic context .. 9 Pay comparability .. 13 Workforce .. 17 Recruitment and retention .. 20 Motivation and morale .. 21 Diversity and inclusion in the Armed forces .. 24 Our comments on workforce data .. 27 Reserve Forces .. 28 Our comments .. 29 Chapter 3 Pay and Allowances .. 31 Introduction .. 31 MOD proposal for a pay award for those earning 24,000 or below.

5 31 Comment and recommendation .. 32 Pay development and the Review of Pay 16 .. 34 Review of the components of X-Factor .. 35 Pension matters .. 36 Defence Aircrew Remuneration Review .. 37 Recruitment and Retention Payments .. 37 RRP (Diving) .. 38 Volunteer Reserves Training Bounty .. 40 Longer Separation Allowance .. 40 Rates of compensatory allowances .. 40 Financial incentives considered outside our usual timetable .. 40 Cost of pay recommendation .. 41 Contents Paragraph PageviChapter 4 Defence Medical Services .. 43 Introduction .. 43 Our evidence base .. 43 NHS developments .. 43 Defence Medical Services overview.

6 44 Unified Career Management Medical programme .. 45 Nurses .. 45 Allied Health Professionals .. 46 Medical Officers and Dental Officers .. 46 Chapter 5 Accommodation and Food Charges .. 49 Introduction .. 49 Service Family Accommodation .. 49 Single Living Accommodation .. 52 Other charges .. 54 Other accommodation matters .. 54 Future Defence Infrastructure Services .. 55 Daily Food Charge .. 55 Chapter 6 Looking Ahead .. 57 Strategic issues .. 57 Pay .. 59 Accommodation .. 61 Our remit group .. 61 COVID-19 .. 61 Conduct of next year s round .. 62 Conclusions .. 62 Appendix 1 Salaries (including X-Factor) for 1 April 2020 and recommendations for 1 April 2021 for those earning 24,000 and below.

7 63 Appendix 2 New X-Factor components .. 71 Appendix 3 PR21 Remit Letter to AFPRB .. 77 Appendix 4 AFPRB 2020 visits .. 79viiGLOSSARY OF TERMS4 TGFour-Tier GradingAAAnnual AllowanceAFArmed ForcesAFCASA rmed Forces Continuous Attitude Survey AFPRBA rmed Forces Pay Review BodyAFPSA rmed Forces Pension SchemeAHPA llied Health ProfessionalARArmy ReserveASHEA nnual Survey of Hours and EarningsBAMEB lack, Asian and Minority EthnicBDAB ritish Dental AssociationBEISD epartment for Business, Energy and Industrial Strategy BMAB ritish Medical AssociationCAASC ombined Accommodation Assessment SystemCCBC areer Continuous BasisCEAC linical Excellence Award (DMS and NHS)CJRSC oronavirus Job Retention SchemeCPIC onsumer Prices IndexCTBC ompletion of Task BasisCQCCare Quality CommissionDARRD efence Aircrew Remuneration ReviewDCUD eferred Choice UnderpinDDRBR eview Body on Doctors and Dentists Remuneration DERRD efence Engineering Remuneration ReviewDFCD aily Food Charge DHSCD epartment of Health and Social CareDIOD efence Infrastructure OrganisationDMSD efence Medical ServicesDPPD elivery Pinch PointsDMSD efence Medical ServicesERNICE mployers National Insurance ContributionsEUEuropean UnionFAMF uture Accommodation ModelFDISF uture Defence Infrastructure ServicesFHTBF orces Help to BuyFMFacilities ManagementFRIF inancial Retention Incentive FTRSFull-Time Reserve

8 ServiceGDPG ross Domestic Product or General Dental PractitionerviiiGMPG eneral Medical PractitionerGYHGet You HomeHDTHome to Duty TravelHMGHer Majesty s GovernmentHMRCHM Revenue and CustomsIDRI ncomes Data ResearchIPInitial PayISEI nstitute of Student EmployersLOAL ocal Overseas AllowanceLSAL onger Separation AllowanceMEAMine Counter Measure Vessels Environmental AllowanceMMAM otor Milage AllowanceMODM inistry of Defence MODOM edical and Dental OfficersMPGSM ilitary Provost Guard ServiceNATON orth Atlantic Treaty OrganisationNCBNon-Continuous BasisNERPNew Entrant Rate of PayNHPN ational Housing PrimeNHSN ational Health ServiceNHSPRBN ational Health Service Pay Review BodyNLWN ational Living WageNMWN ational Minimum WageOBRO ffice for Budget ResponsibilityOFOfficer OMEO ffice of Manpower EconomicsONSO ffice of National StatisticsOROther RankPACP ublic Accounts Committee PAYEPay As You EarnPIPerformance IndicatorPPOsPrincipal Personnel Officers PTVRPart-Time Volunteer ReservePSSP ensions Savings StatementRAFR oyal Air ForceRAFRRAF ReserveRBReserve BandingResCASA rmed Forces Reserves Continuous Attitude SurveyRMRoyal MarinesRMRR oyal Marines ReserveRNRoyal NavyRNRR oyal Naval ReserveixRPIR etail Price IndexRRPR ecruitment and Retention PaymentSASS taff Grades and Associate SpecialistsSCAPES uperannuation Contributions Adjusted for Past ExperienceSFAS ervice Family Accommodation SLAS ingle Living Accommodation

9 SLAMISSLA Management Information SystemSPService PersonnelSPPS ustainability Pinch PointsTACOST erms and Conditions of ServiceTBTraining BountyTLBTop Level BudgetTSPT rade Supplement PlacementUCMU nified Career ManagementVOVoluntary Outflow xxiARMED FORCES PAY Review BODY 2021 REPORT SUMMARYThis year, the scope of our recommendations has been constrained by the government s public sector pay pause . We were asked to set out a preferred option to implement the government s policy of providing a consolidated uplift of 250 for those Service personnel earning 24,000 or below. We recommend a mechanism that excludes X-Factor from the calculation of the threshold for central recommendation is that rates of base pay for those earning 24,000 or below, with the threshold for payment calculated as base pay excluding X-Factor, be increased by 250 from 1 April other recommendations are: From the date of the publication of this Report, for the Army only, Recruitment and Retention Payment (Diving) to be paid on a Non-Continuous Basis.

10 Service Family Accommodation (SFA) Combined Accommodation Assessment System Band A charges to be increased by , but that this increase should not be subject to any backdating. Four Tier Grading SFA charges in Germany to be increased by , but that this increase should not be subject to any backdating. Grade 4 SFA furniture charges to be retained but uplifted by , but that this increase should not be subject to any backdating. Single Living Accommodation rental charges for Grade 1 to be increased by , with increases of to Grade 2, to Grade 3 and no increase to Grade 4, but that these increases should not be subject to any backdating. The annual charges for standard garages and standard carports to be increased by , with no increase to charges for substandard garages and substandard carports, but that these increases should not be subject to any backdating.