Armed Forces’ Pay Review Body
Forty-Seventh Report 2018
Chair: John Steele
Cm 9677
Armed Forces’ Pay
Review Body
Forty-Seventh Report 2018
Chair: John Steele
Presented to Parliament by the Prime Minister and the
Secretary of State for Defence by Command of Her Majesty
July 2018
Cm 9677
© Crown copyright 2018
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Armed Forces’ Pay Review Body
TERMS OF REFERENCE
The 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 Crown.
In reaching its recommendations, 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 target.
The Review Body shall have regard for the need for the pay of the Armed Forces to be broadly comparable with pay levels in civilian life.
The Review Body shall, in reaching its recommendations, take account of the evidence submitted to it by the Government and others. The Review Body may also consider other specific issues as the occasion arises.
Reports and recommendations should be submitted jointly to the Secretary of State for Defence and the Prime Minister.
The members of the Review Body are:
John Steele (Chair)1 Brendan Connor Tim Flesher CB Professor Ken Mayhew Lesley Mercer Vilma Patterson MBE Janet Whitworth Rear Admiral (Ret’d) Jon Westbrook CBE
The secretariat is provided by the Office of Manpower Economics.
1
John Steele is also a member of the Review Body on Senior Salaries.
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- iv
Contents
Paragraph
Terms of Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page
iii viii xiii
Chapter 1 Chapter 2
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Our evidence base . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 Our 2018 Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.18
11124
Context and Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Government evidence. . . . . . . . . . . . . . . . . . . . . . . . . . 2.2
− General economic context . . . . . . . . . . . . . . . . . . 2.2 − MOD evidence on strategic management. . . . . . . 2.6
Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10 Motivation and morale . . . . . . . . . . . . . . . . . . . . . . . . 2.12 Workload . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.19
− Operational and other commitments . . . . . . . . . 2.19
Working hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.22 National Minimum Wage and National Living Wage . . 2.25 Leave arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . 2.29 Pay comparability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.31
− Review of our approach to pay comparability . . . 2.32 − Average Weekly Earnings and pay settlements. . . 2.34
7777899
10 10 11 12 13 13 13 14
− Comparisons with data from the Annual Survey
- of Hours and Earnings. . . . . . . . . . . . . . . . . . . . . 2.36
- 14
15 16 17 19
− Graduate pay . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.38
Non-pay benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.41 Diversity and Inclusivity in the Armed Forces. . . . . . . . 2.43 Reserve Forces. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.54
Chapter 3
Pay and Allowances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Base pay: the evidence . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 Comment and recommendation. . . . . . . . . . . . . . . . . 3.17 Defence Engineering Remuneration Review. . . . . . . . . 3.27 Recruitment and Retention Payments . . . . . . . . . . . . . 3.40 RRP (Flying Crew) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.54 RRP (Hydrographic). . . . . . . . . . . . . . . . . . . . . . . . . . . 3.70 RRP (Parachute). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.76 RRPs and Pay16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.82
23 25 26 27 29 33 35 38 39 40
v
Mine Counter Measure Vessels Environmental
- Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.84
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43 44 45 46
Officers Commissioned from the Ranks . . . . . . . . . . . . 3.88 Recruitment and Retention Allowance (London) . . . . . 3.93 Unpleasant Work Allowance . . . . . . . . . . . . . . . . . . . 3.100 Rates of Compensatory Allowances . . . . . . . . . . . . . . 3.103 Financial incentives considered outside our usual
- timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.104
- 46
46 48
Pay16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.107 Payment of professional body fees . . . . . . . . . . . . . . 3.113
Chapter 4
Service Medical and Dental Officers. . . . . . . . . . . . . . . .
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3
− DMS Developments . . . . . . . . . . . . . . . . . . . . . . . 4.3
NHS Developments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 Our 2018 recommendations. . . . . . . . . . . . . . . . . . . . . 4.5 Our evidence base . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 Recruitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.11 Retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.12 Motivation and Morale . . . . . . . . . . . . . . . . . . . . . . . . 4.13 DMS Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.15 Pay comparability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.17
− Summary of pay comparisons by DMS group . . . 4.18 − Consultants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.19 − General Medical Practitioners . . . . . . . . . . . . . . . 4.22 − General Dental Practitioners . . . . . . . . . . . . . . . . 4.25 − Junior Doctors in Training . . . . . . . . . . . . . . . . . . 4.28
Future pay comparability. . . . . . . . . . . . . . . . . . . . . . . 4.30 Pay recommendations for 2018-19 . . . . . . . . . . . . . . . 4.34
− Overall pay recommendation . . . . . . . . . . . . . . . 4.34
GMP and GDP Trainer Pay and Associate Trainer Pay. . 4.39 MOD Clinical Excellence Awards . . . . . . . . . . . . . . . . . 4.40 Length of pay scales . . . . . . . . . . . . . . . . . . . . . . . . . . 4.42 Working hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.43
49 49 49 49 50 50 50 51 53 54 54 54 55 55 55 57 57 58 59 61 61 62 62 62 62
Chapter 5
Accommodation and Food Charges . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Service Family Accommodation. . . . . . . . . . . . . . . . . . . 5.4 Our approach to recommendations . . . . . . . . . . . . . . 5.19 Service Family Accommodation rental charges . . . . . . 5.27
− Other components of SFA charges . . . . . . . . . . . 5.31
Single Living Accommodation. . . . . . . . . . . . . . . . . . . 5.32
− Single Living Accommodation rental charges . . . 5.41 − Other components of SLA charges . . . . . . . . . . . 5.42
Other charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.43
65 65 65 69 71 71 72 73 74 74
vi
Future Accommodation Model . . . . . . . . . . . . . . . . . . 5.44 Forces Help to Buy . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.47 Daily Food Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.48
74 75 77
Chapter 6
X-Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 The rationale for X-Factor . . . . . . . . . . . . . . . . . . . . . . . 6.4 Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7
79 79 79 80
Analysis of X-Factor components – military and
- civilian. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.10
- 80
84 84 85 85 85 85
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.24 The X-Factor taper . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.27 Evidence on other groups . . . . . . . . . . . . . . . . . . . . . . 6.28 Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.29 Military Provost Guard Service. . . . . . . . . . . . . . . . . . . 6.30 Royal Gibraltar Regiment and RG Reserves . . . . . . . . . 6.31
Chapter 7
Looking Ahead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of recommendations. . . . . . . . . . . . . . . . . . . . . . . 7.1 Looking ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Our next Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.13 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.16
87 87 87 89 89
Appendix 1 Appendix 2
Salaries (including X-Factor) for 1 April 2017 and
- recommendations for 1 April 2018 . . . . . . . . . . . . . . . . . .
- 91
1 April 2018 recommended rates of Recruitment and
- Retention Payments and compensatory allowances. . . . . .
- 109
116 117
Appendix 3 Appendix 4 Appendix 5
AFPRB 2017 recommendations . . . . . . . . . . . . . . . . . . . . . AFPRB 2017 visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Letter from the Chief Secretary to the Treasury and the
- remit letter from the Secretary of State for Defence. . . . . .
- 119
122
Appendix 6
AFRPB’s five-year work programme schedule. . . . . . . . . . .
vii
GLOSSARY OF TERMS
1AMW 4TG
No. 1 Air Mobility Wing (RAF) Four-Tier Grading
A2020 AAC
Army 2020 Army Air Corps
AFCAS AFPRB AFPS AGE
Armed Forces Continuous Attitude Survey Armed Forces’ Pay Review Body Armed Forces’ Pension Scheme Aircraft Ground Engineer (RAF) Annington Homes Ltd
AHL ASHE AWE
Annual Survey of Hours and Earnings Average Weekly Earnings
BAME BDA
Black, Asian and Minority Ethnic British Dental Association
BEIS
Department for Business, Energy and Industrial Strategy British Medical Association
BMA CA
CarillionAmey
CAAS CCB
Combined Accommodation Assessment System Continuous Career Basis
CEA
Clinical Excellence Award (DMS and NHS) Chartered Engineer status
CEng CILCOT CPI
Contribution in Lieu of Council Tax Consumer Prices Index
CPIH CST
Consumer Prices Index including Owner Occupiers’ Housing Costs Chief Secretary to the Treasury Completion of Task Basis
CTB DDIP DDRB DERR DFC
Defence Diversity and Inclusivity Programme Review Body on Doctors’ and Dentists’ Remuneration (OME) Defence Engineering Remuneration Review Daily Food Charge
DHSC DIO
Department of Health and Social Care Defence Infrastructure Organisation Defence Medical Services
DMS DMS20 DMSCAS
Defence Medical Services 2020 Defence Medical Services Continuous Attitudes Survey
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EDP
Early Departure Payment
Eng Tech EPRA FAM FAMCAS FES
Engineering Technician Engineer Professional Recognition Award Future Accommodation Model Armed Forces Families Continuous Attitude Survey Flexible Engagements System Forces Help to Buy
FHTB FI
Financial Incentive
FOI
Freedom of Information
FR20 FRI
Future Reserves 2020 Financial Retention Incentive Full Time Reserve Service
FTRS GDP GMP GPMS GTS
Gross Domestic Product or General Dental Practitioner General Medical Practitioner General and Personal Medical Services Gains to Trained Strength
HESA HM(H) HMRC HoE
Higher Education Statistics Agency Hydrographic and Meteorology Branch (Hydrography) (RN) Her Majesty’s Revenue and Customs Head of Establishment
HR
Human Resources
IDR
Incomes Data Research
IEng IES
Incorporated Engineer Institute for Employment Studies Individual Harmony Guidelines Individual Leave Allowance
IHGs ILA IP
Industry Partners
JHSS JPA
Joint Helicopter Support Squadron Joint Personnel Administration Joint Services Job Evaluation Team Joint Service Publication
JSJET JSP KPIs LGBT LSA
Key Performance Indicators Lesbian, Gay, Bisexual and Transgender Longer Separation Allowance Mine Counter Measures Vessels Mine Counter Measures Vessels Environmental Allowance
MCMVs MEA
ix
MET MIS
Meteorology Minimum Income Standard Ministry of Defence
MOD MODO MPGS NATO NCA NCB NCO NEM NERP NHP NHS NI
Medical and Dental Officers Military Provost Guard Service North Atlantic Treaty Organisation Non-Commissioned Aircrew Non-Continuous Basis Non-Commissioned Officer New Employment Model New Entrants’ Rates of Pay National Housing Prime National Health Service Northern Ireland
NIRS NJO
Northern Ireland Residents’ Supplement New Joiner Offer
NLW NMW NTM OBR OCFR OF
National Living Wage National Minimum Wage Notice to Move The Office for Budget Responsibility Officer(s) Commissioned from the Ranks Officer
OFWAT OME OPP OR
Water Services Regulation Authority Office of Manpower Economics Operational Pinch Point Other Rank
PAC
Public Accounts Committee Programmed Activities Pay As You Dine
PAs PAYD PBF
Professional Body Fees
PFI
Private Finance Initiative Performance Indicator
PI PJI
Parachute Jumping Instructor Principal Personnel Officers Professionally Qualified Officers Pay Round 2018
PPOs PQOs PR18
x
PR19
Pay Round 2019
PR20
Pay Round 2020
PSA
Public Service Agreement
PVR
Premature Voluntary Release
PwC
PricewaterhouseCoopers
RAF
Royal Air Force
RAFR
Royal Air Force Reserves
RE
Royal Engineers
REME ResCAS RG
Royal Electrical and Mechanical Engineers Armed Forces Reserves Continuous Attitude Survey Royal Gibraltar Regiment
RLC
Royal Logistic Corps
RM
Royal Marines
RMR
Royal Marines Reserve
RN
Royal Navy
RNR
Royal Naval Reserve
RoS
Return of Service
RPAS
Remotely Piloted Aircraft Systems
RPI
Retail Prices Index
RRA(L) RRP
Recruitment and Retention Allowance (London) Recruitment and Retention Payment Recruitment and Retention Payment (Flying Crew) Recruitment and Retention Payment (Hydrographic) Recruitment and Retention Payment (Mountain Leader) Recruitment and Retention Payment (Naval Service Engineer) Recruitment and Retention Payment (Parachute) Recruitment and Retention Payment (Parachute Jumping Instructor) Recruitment and Retention Payment (Special Communications) Recruitment and Retention Payment (Special Forces) Recruitment and Retention Payment (Special Forces Communications) Recruitment and Retention Payment (Special Reconnaissance Regiment) Recruitment and Retention Payment (Weapons Engineering Submariner) Superannuation Contributions Adjusted for Past Experience State Ceremonial and Public Duties Strategic Defence and Security Review Special Forces
RRP(FC) RRP(H) RRP(ML) RRP(NSE) RRP(P) RRP(PJI) RRP(SC) RRP(SF) RRP(SFC) RRP(SRR) RRP(WESM) SCAPE SCPD SDSR SF
xi
SFA
Service Family Accommodation Special Forces Communications Service Families’ Federation Surgeon General (DMS)
SFC SFF SG SI
Special Intelligence
SLA
Single Living Accommodation Single Living Accommodation (Management Information System) Single Living Accommodation Modernisation Submarine
SLA (MIS) SLAM SM SNCO SP
Senior Non-Commissioned Officer Service Personnel
SQEP SR
Suitably Qualified and Experienced Personnel Special Reconnaissance or Senior Rate Substitute Service Family Accommodation Review Body on Senior Salaries (OME) Science, Technology, Engineering and Mathematics Training Bounty
SSFA SSRB STEM TB TLB
Top Level Budget
TSP
Trade Supplement Placement United Kingdom of Great Britain and Northern Ireland Unpleasant Living Allowance United Nations
UK ULA UN USA UWA VAT VBA VO
United States of America Unpleasant Work Allowance Value Added Tax Virtual Bank Account Voluntary Outflow
WMS WO
Written Ministerial Statement Warrant Officer
xii
ARMED FORCES’ PAY REVIEW BODY
2018 REPORT – SUMMARY
Summary of recommendations from 1 April 2018 (unless otherwise stated): •••
Rates of base pay for the main remit group to be increased by 2.9 per cent. All rates of X-Factor should remain unchanged. The following targeted measures as part of the Defence Engineering Remuneration Review (DERR) pay proposals:
– Category 1: core pay, supplements and bespoke pay spine
• Royal Air Force (RAF)-led tri-Service work on the case for a bespoke pay spine for professional engineers, to report to us in Pay Round 19 (PR19); and
• Consideration of using the Pay16 pay model to better target engineers in core pay, again to report to us in PR19.
– Category 2: qualifications and professional registration
• an Engineer Professional Recognition Award (EPRA) for Army Officers
(OFs) and Other Ranks (ORs) for implementation in the current pay round (PR18);
• an EPRA for Royal Navy Officers, that includes retrospective recognition of qualifications, for implementation in PR19; and
• an EPRA targeted at all RAF OFs and ORs tied to professional attainment from Eng Tech through to IEng and CEng, and that again includes retrospective recognition, for implementation in PR18.
– Category 3: targeted remuneration measures
• Possible RAF-led Financial Retention Incentives (FRIs) targeted at specific cohorts (including both OFs and ORs) for implementation in PR18. These FRIs have not yet been submitted for our consideration but we are content to consider them out of round;
• A Royal Navy-led targeted Recruitment and Retention Payment (RRP)
(Naval Service Engineer) for Royal Navy ORs, for implementation in PR19, synchronised with the rundown of existing FRIs for Marine and Weapon Engineer, General Service and for Submariners; and
• Two Army-led FRIs, one targeted at Royal Electrical and Mechanical
Engineers (REME) Aircraft and Avionics Technicians and the other targeted at REME Artificer Aircraft and Avionics Technicians, both for implementation in PR18.
- •
- Other targeted measures (full details in Chapter 3):
– RRP (Mountain Leaders) and RRP (Parachute Jumping Instructors) to remain at current rates.
– RRP (Flying Crew) (FC):
• RRP(FC) to remain at current rates. • Royal Navy Flying Maintainers to continue to be eligible for RRP(FC) on a Non-Continuous Basis (NCB).
• An enduring requirement to pay RRP(FC) to Royal Navy Flight Winchmen on a NCB under existing arrangements.
xiii
• RRP(FC) should be re-profiled for Royal Logistic Corps (RLC) Air
Despatchers under existing NCB arrangements, focusing the payment on the retention of more experienced personnel.
• Army Air Corps Aviation Crew transfer to RRP (Flying) Non-
Commissioned Aircrew with effect from 1 April 2018.
• No ongoing requirement to pay RRP(FC) to REME Aircraft Technicians. • An ongoing requirement to pay RRP(FC) to RAF Aircraft Ground
Engineers; however, the recruitment and retention issues affecting the cohort should be considered as part of the DERR and single Service work to improve retention within engineering cadres.
• An ongoing requirement to pay RRP(FC) on a NCB for Suitably Qualified and Experienced Personnel working as RAF Air Mobility Movers within No 1 Mobility Wing; however, it is not necessary to pay new entrants at the base level.