Earl Howe

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That the Bill be now read a second time.

The Minister of State, Ministry of Defence (Earl Howe) (Con)

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My Lords, it is a pleasure to have the opportunity again to be speaking to a Bill for the Armed Forces. The welfare of our service personnel is one of the most important responsibilities of government and one that we take very seriously. The Government are determined to meet their obligations to our brave service men and women and their families. Part of this commitment is ensuring that their service meets the needs of modern life and helps to secure a better work/life balance.

It is evident that there now exists, in society, a desire and need for greater choice in how individuals run their lives, and this, of course, extends to the Armed Forces. Of course, total and unlimited choice is not possible in the disciplined environment of the Armed Forces where the requirement to serve the needs of the country is paramount, but there are ways in which our traditionally inflexible approach to working can be improved. The Armed Forces (Flexible Working) Bill is our response to this. It is not the panacea for the challenges we face in the recruitment and retention of our people, but it is a step in the right direction to offer our people more control over how they serve.

We know that one of the top reasons why people choose to leave the Armed Forces is the impact of their service on family life. Regular personnel who are unable to meet their unlimited military commitments for periods of time sometimes have no other choice than to leave the services. They lose a well-earned career; we lose their hard-won knowledge, skills and experience. Self-evidently, this is detrimental to maintaining operational capability and to the cost of defence, so why would we not make the lives of those who proudly serve our nation easier?

The Bill will help to ease their lives. It offers our people a solution when they are faced with complexity in their personal life. Flexible working will alleviate some of the strain at critical times and help the services retain more of the people they need to keep, such as women who are considering starting a family or men and women with caring responsibilities. Importantly, the services believe that flexible working opportunities will help them to compete with modern organisations and attract the best people to join our Armed Forces. To continue to deliver crucial operational capability, the Armed Forces must be seen as a modern and attractive employer if they are to recruit the quality and quantity of people they need from across the breadth of the UK society that they serve. This is getting harder to do against an increasingly competitive backdrop, with the competition for talent expected to increase in the years ahead. In short, flexible working opportunities will enhance the delivery of operational capability through improved retention, a more diverse workforce and a broader spectrum of commitment levels when and where we need them.

So what does this small Bill do? There are two main provisions. The first clause amends Section 329 of the Armed Forces Act 2006, which makes provision regarding terms and conditions of enlistment and service. The amendment extends the existing regulation-making power to enable enhanced flexible working opportunities, within which regular service personnel would be able to apply to work part-time and/or to restrict their geographic employment by limiting the time they are separated from their permanent place of residence or home base. In practice, these new options will be temporary, limited to defined periods and subject to service needs to maintain operational capability. That last point is crucial. Although we recognise that modernisation for the Armed Forces is essential, maintaining operational effectiveness is our absolute red line. The Bill therefore also provides for the services to vary, suspend or terminate the arrangements in circumstances to be prescribed in new regulations. Of course there will be instances where flexible working arrangements are simply not practicable, for example while serving at sea or in a high readiness unit. The Bill will not therefore enable every service person to work flexibly, but it will create an obligation for the services to consider and decide on applications from personnel to serve under the new flexible working arrangements. It will also create the requirement for the services to record the terms of an approved application, such that there is clarity for both parties in the arrangements.

Clause 2 will make small consequential amendments to existing legislation to provide for regular personnel temporarily serving under flexible working agreements to continue to be automatically excused jury service.

The provisions in the Bill are based firmly on evidence. Since 2015, some elements of the services have been conducting a flexible duties trial. The ongoing trial is proving the need for both a reduced liability to deploy and less than full-time working. The majority of participants describe the trial as a positive experience, particularly for those with children, and the Army reported a noticeable correlation between flexible working, improved relationships and team morale. Here I must make clear that the services are greatly involved in the development of flexible working. These proposals, which have the support of the service chiefs, have been designed, and continue to be developed, by the services for the services. We should not forget the bedrock of those who follow and support our Armed Forces: their families. I am pleased to tell the House that the Families Federations have said they welcome the MoD’s plans to improve flexible working opportunities in the Armed Forces:

“The drive for a better work/life balance amongst Service families is one of our focus areas and we eagerly await the further development of this initiative”.


The Bill would allow service personnel to provide their service in a more flexible way to better suit their lifestyles. Service personnel will be able to temporarily reduce the time they are required for duty—for example, by setting aside one or two days a week where they will not work or be liable for work—or to restrict the amount of time they spend separated from their normal place of work.

For the avoidance of any doubt, the case for flexible working for the Armed Forces is principally about recruitment and retention. It is not—I say this particularly to the Benches opposite—a money-saving exercise. As I have made clear, it is a novel way to support the Armed Forces in the changing demands of modern life. Our aim is to help service families attain a better work/life balance. Flexible working would provide breathing space for other responsibilities. In particular, we believe the Bill would improve the lived experience of female personnel and help the Armed Forces work towards their 15% recruitment target for women by 2020.

On the back of these measures for regulars, we hope in time to build further opportunities for members of the reserves to expand their experience, which will move us closer to a whole-force approach. I hope your Lordships will appreciate that, although this is a small Bill, it will have far-reaching consequences in helping to modernise our great and illustrious Armed Forces. I look forward to an interesting debate this afternoon and to the detailed scrutiny we shall give the Bill later in Committee. I commend the Bill to the House, and beg to move.

Earl Howe

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My Lords, as always, and as the noble Lord, Lord Tunnicliffe, rightly said, we have had a good debate, and I thank noble Lords for their insightful contributions. I was very grateful for the supportive comments of many speakers regarding the Bill’s purport.

I will try my best to respond to as many as possible of the questions and points that have been raised but I hope that noble Lords will bear with me if I do not manage to address each and every one today. I will of course write to any noble Lord where I have something to add.

I begin with the contribution of the noble Lord, Lord Touhig. I was disappointed by his sceptical reaction to the Bill. In fact, uncharacteristically, his remarks came over as sceptical bordering on the cynical. I just ask him to give some credit to the services. I believe that we need to support them, in the first instance, for having identified a gap in the current offer to the Armed Forces and, secondly, for coming up with proposals to address that gap in a way that reflects best employment practice in industry and commerce.

Indeed, I stress one key point to the noble Lord and to the noble and gallant Lord, Lord Walker. The new flexible working options have the full backing of the three services. They have been consulted and engaged throughout the design process, and they will continue to be involved as we implement the changes. As I said earlier, the chiefs of the services support these proposals, and they have regularly provided direction and guidance during their development. That development work continues, which is why I do not currently have all the answers requested by the noble and gallant Lord, Lord Stirrup.

As I said, we have consulted the services throughout this project and their advice has helped to shape the design of the new flexible working arrangements. We recently engaged with the three services’ families federations, which have collectively said that they welcome the MoD’s plans. We continue to engage with a range of key stakeholders, and that process will intensify as we continue to develop and finesse our policies in the lead-up to the introduction of the new arrangements in April 2019.

Let me deal with another misconception. There is no question of the services or the MoD imposing flexible working on anybody. Flexible working will only happen following an application by an individual. Far from imposing on regular personnel, these changes provide further protections to personnel in enabling them to achieve a better work/life balance to suit their circumstances.

The noble Lord, Lord Touhig, and the noble and gallant Lord, Lord Walker, suggested that this could all be a plot to reduce the pay bill and/or deprive people of pay. No it is not. The new arrangements have been designed with cost neutrality in mind. As I have stressed before, this change is predominantly about giving service personnel more choice over the way they serve. It will help the Armed Forces to retain our current personnel and to attract and retain future joiners. I thought that the question posed by my noble friend Lord Attlee was very apt: why should we lose personnel because of their family set-up? The answer is, we should not, and I hope the Bill will help us to address this.

Of course, those wishing to vary their commitment will see a commensurate variation in their reward. That variation will be fair and reasonable, both to those who work flexibly and to those who do not. Pay will be calculated on a proportional basis. Further work is under way to determine the precise impact on pensions and the full range of allowances, against the principle that the outcome will be fair and proportionate. We already offer the ability to undertake flexible start and cease-work times for no loss of pay. However, the Bill is designed to offer the ability to work less than others. Therefore, it is right and fair to others to reduce pay proportionately.

As I have just said, flexible working should be seen as filling a gap in the flexible working arrangements already available in the Armed Forces. The noble Baroness, Lady Smith, was right to point out that flexible working is something of an umbrella term in this context. A number of formal flexible working arrangements, such as variable start and cease-work times, have been available for some years subject to local chain of command approval, but these invariably involve doing the same amount of work over a different working pattern, rather than a formal agreement to work less for less pay. We recently introduced a number of progressive flexible working changes, including new leave options and improvements for those taking career breaks, but these flexibilities are limited in their applicability and do not go far enough. As a snapshot, some 2,000 applications were approved across the services in the last six months, covering the various arrangements currently available.

The noble Baroness, Lady Jolly, asked whether the Bill could enable other types of flexible working, such as working from home. I have largely dealt with that and, as she will appreciate, that is not necessary because we already offer opportunities to work from home, as I know she is aware of from her own experience.

The noble and gallant Lord, Lord Craig, asked some detailed questions, including on entitlement to service accommodation. I reassure him that entitlement to service-provided accommodation is a key element of the conditions of service that support the mobility of personnel, and that entitlement will not change as a result of flexible working because it will not change personnel mobility.

The noble and gallant Lord also asked what this will mean for reserves. Reserves are already able to serve in a range of different commitments, so legislative change is not required for them. Under Future Reserves 2020 we have expanded reserves’ terms and conditions of service to meet developing service needs, and there will be no change in entitlement to medical and dental services. Regulars will remain subject to service law at all times, even when they are working part-time. As the noble and gallant Lord knows, the duty to serve and obey, enforced through disciplinary action, is central to the functioning of the Armed Forces. It will remain essential for commanders to be able to issue lawful commands to personnel undertaking part-time or geographically restricted service. Those commands must be followed. However, it will clearly not be lawful for a commander to order a regular to attend for duty on one of their agreed days off or to serve outwith the prescribed maximum number of days of separation.

Keeping part-time regulars subject to service law at all times has the added advantage of absolute clarity for all. There will be no difficult questions for personnel or commanders to consider about whether someone is or is not subject to service law on a given day. The noble and gallant Lord, Lord Craig, asked me a number of other questions and I hope that he will allow me to write to him on those.

However, what I can and should say to the noble and gallant Lord, Lord Stirrup, with great respect to him, is that this is not about flexible terms of employment. Regulars are not employed, so the legislation refers to terms and conditions of service. The noble Baroness, Lady Jolly, and the noble and gallant Lord, Lord Stirrup, asked about levels of uptake. The answer is that we expect a small but significant number to take up the new arrangements. We will manage expectations and explain that applications will be approved only where the MoD can accommodate the arrangements without unacceptably affecting operational capability. We expect that the majority of service personnel will remain on full-time commitment arrangements. So in answer to the noble and gallant Lord, Lord Walker, there will not be a specific cap on numbers, but the services will have full control over the number of people they can allow to work flexibly and will have the controls to vary this over time.

The noble Baroness, Lady Jolly, and others asked about implementation. We plan to allow the first applications from 2019, as I mentioned earlier, and we anticipate that applications and the services’ ability to accept them will grow slowly. This will take careful management and a change of culture in some areas. Implementation will include a communication campaign, along with training and guidance for commanding officers and potential applicants alike.

The noble Lord, Lord Touhig, the noble Baroness, Lady Jolly, and the noble and gallant Lord, Lord Walker, asked about the decision-making process. Commanding officers will not make the final decision on applications to work flexibly. They will be considered by an approvals authority within each service at headquarters level, which will be informed by advice from the chain of command, manpower planners, career managers and other relevant parties. The process is still being finalised, but our aim is for an agile system that will be able to administer applications efficiently.

As regards the applications that are considered, of course some will be refused, as the noble Baroness, Lady Jolly, rightly anticipated. A new flexible working application is more likely to be refused if personnel are in a role that is delivering a critical output or is highly deployable, such as on a ship or in a high-readiness unit, or have already been warned to be ready to deploy to an operational theatre. An appeals process will be put in place to reconsider applications that have been rejected. Each service will have its own separate appeals review body, which will include career managers and other subject matter experts. Personnel will retain their right to enter a service complaint if their appeal is unsuccessful, which will have the oversight of the independent Service Complaints Ombudsman.

Let me stress again that maintaining operational capability will be at the forefront of any decision on allowing a serviceperson to temporarily reduce their commitment. We will also retain the ability to recall personnel to their full commitments in cases of national crisis. We judge that in time this will enhance our national defence as it takes effect and we experience the benefits of improved retention, a more diverse workforce, and the ability to deploy a broader spectrum of our people, both regular and reserve, when and where we need them through the flexibility which this initiative will bring.

The noble Baroness, Lady Jolly, asked whether personnel will be able to join the services and take flexible working straightaway. My noble friend Lord Attlee was quite right on that point. We envisage that personnel will be expected to complete both their initial and trade training along with a period thereafter to settle in and consolidate their training before flexible working is considered.

The noble and gallant Lord, Lord Walker, asked about the legal risks of refusing applications. Decisions on applications will be subject to a robust process, taken at a senior level on advice, and, as I said, with an appeal available. A disappointed applicant will have avenues available to them to seek a remedy. Those appeals or complaints will be considered carefully, with oversight as necessary from the independent Service Complaints Ombudsman. As a result, we would not anticipate a rise in discrimination claims in this context.

The noble Baroness, Lady Jolly, raised an interesting point about workloads, wondering, if I can put words into her mouth, whether these arrangements will mean there will be more work for those who do not avail themselves of flexible working. We will manage the levels of flexible working permitted and therefore will be able to ensure that the right levels are maintained to deliver defence outputs. It is envisaged that capacity surrendered to flexible working arrangements will either be within reducible capacity or otherwise be sourced through other means, such as employment of reserves. Like other organisations with part-time workers, the organisation will change over time to better accommodate flexible working.

The noble Lord, Lord Touhig, asked what skills have been lost so far. I simply say that all personnel who depart take hard-won skills and experience with them, as he will know. Saving any of those skills will clearly help. While figures on the number of skilled service leavers are not held centrally, the Ministry of Defence is absolutely committed to ensuring that our personnel who leave the Armed Forces make a successful transition to civilian life.

The noble Lord also indicated that he would propose that new Defence Council regulations should be subject to the affirmative resolution procedure. The changes will be made by amending existing Defence Council regulations, which are subject to the negative procedure. The matters to be set out in new regulations will be procedural—the right to apply, the right to appeal and so on. The negative procedure is appropriate in this context.

The noble Baroness, Lady Jolly, asked what the prescribed circumstances would be to vary or terminate the new arrangements. These will be set out clearly in new Defence Council regulations, scrutinised as necessary by Parliament. The new arrangements will be terminated only when absolutely necessary—for example, as I indicated, in a national emergency or when there is a major manning crisis.

The noble and gallant Lord, Lord Walker, suggested that we should prohibit those availing themselves of flexible employment from undertaking secondary employment. I simply say to him that this Bill is not about enabling secondary employment. Regulations already exist with stringent controls over the types and forms of employment that may be accepted, but only with authority. As in all cases, service duty takes precedence.

The noble Baroness, Lady Jolly, asked whether flexible working would affect someone’s chance of promotion. Many factors affect promotion, as she is aware, but a period of flexible working will not of itself impact on promotion. In designing the new arrangements we have agreed a number of principles with underpinning activities aimed at ensuring that very thing. These include that we would wish to avoid intentional or unintentional career penalties for those who undertake flexible service. We will create the opportunity for individuals to maintain or regain career momentum. We will seek to maximise accessibility of transfer between the regulars and reserves in both directions by minimising negative career impact. When one thinks about it, a decision on promotion is very largely forward-looking, rather than looking back. It is very substantially about the person’s potential.

The noble and gallant Lord, Lord Walker, asked whether personnel would be able to dodge deployments. In the right circumstances some will be able to avoid being deployed, but a request on those lines will be approved only where the service can continue to deliver its operational capability. It will be refused where that cannot be achieved. Protection from deployments for a limited period where possible will retain some of our skilled personnel.

The noble Baroness, Lady Smith, asked how personnel would find out about flexible working. We have a communications plan in force already to build on the reality of the flexible duties trial, but I shall be able to give her further particulars of that in due course.

My noble friend Lord Sterling raised the important issue of service ethos and was worried that our proposals might damage it. I hope that, as the Bill proceeds, I can convince him that that will not be so. In fact, we expect that the arrangements will enhance ethos over time by helping us to retain and recruit the best people for defence. The evidence that we have gathered from published research literature, consultation with our people, surveys and an ongoing trial tells us clearly that personnel have reported consistently that the impact of service life on family and personal life is the most important factor that might influence them to leave. The three most frequently cited benefits of flexible working are that it helps employees to reduce the stress and pressure they feel under, it enables better work/life balance and it encourages people to stay with their current employer.

I was grateful to my noble friend Lady Eaton for her contribution about family stability and support. I will write to her about the points that she raised. I should be glad if she could provide evidence of the gaps that she feels exist and that are not currently provided for by other statutory bodies in family support, so that I can understand what type of additional support she feels is needed by service families. We need to understand whether families want that additional support, because finding a balance between paternalism and an intrusive approach against making that support readily available is clearly very important.

I listened carefully to the noble Lord, Lord Dannatt, who argued for better mental health service availability for serving personnel. I will gladly follow up the points that he raised after this debate. I also listened carefully to the noble Lord, Lord Brooke of Alverthorpe, regarding his Private Member’s Bill on the abuse of military honours. The Government were well disposed in principle towards the Bill introduced in the previous Parliament; I should be happy to talk to him about the introduction of a similar Bill in your Lordships’ House and the scope for giving it appropriate debating time, which of course is a matter for the usual channels. We explored whether it might have been possible to amend this Bill in the sense that he has suggested, but the advice that I had was that it was not within the scope of the Bill’s Title. As I have said, I would be glad to talk further to the noble Lord.

Earl Howe

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I should be glad to do so.

I am conscious that in the time available I have not responded to the noble Earl, Lord Listowel, on his concerns about families, the noble Baroness, Lady Burt, on BAME recruitment and other matters, and the noble Baroness, Lady Smith, on families’ accommodation. I will do so, however, in writing.

I hope that, despite the reservations that have been voiced, this Bill will receive a fair wind from your Lordships. Our Committee proceedings will doubtless enable us to explore a number of areas of detail about which, quite understandably, noble Lords have raised questions. Until then, however, I commend the Bill to the House.

The Minister of State, Ministry of Defence (Earl Howe) (Con)

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My Lords, through this group of amendments, the noble and gallant Lord, Lord Craig, questions the wording of the Bill in a number of ways. I hope to persuade him that Clause 1 has been drafted with careful consideration of the effect that the Bill would have on implementation of flexible working.

Amendment 1 seeks to remove new Section 329(2)(ha) and replace it with new wording, which would provide the Defence Council with different powers. Those different powers would enable the Defence Council to make regulations enabling flexible rather than part-time service for enlisted regulars and for a regular to be able to request periods of unpaid leave. The noble and gallant Lord raised these points at Second Reading, and the aim, as I understand it from his remarks today, is to move away from the language of “part-time service” and replace it with “flexible service”, the underlying thought being that it would be more appropriate to label this change as another form of unpaid leave.

Regulars can already serve on a flexible basis. The options which exist are several: variable start and finish times; compressed hours; home working; and career intermissions. The first three of those are essentially a means to rearrange the working day or week, while career intermissions involve unpaid leave for up to three years for, say, a period of study. The Bill is doing something quite different from those arrangements. It is creating part-time service, as commonly understood. That is why the language used has to be the right language.

The effect of Amendment 1 would be that all flexible working arrangements for regulars would have to be provided for by way of Defence Council regulations. We regard that as unnecessary, and it would require a major rewrite of the existing terms of service regulations to deliver. I cannot agree with the noble and gallant Lord that the term “part-time” is belittling, nor do I think that it will undermine service ethos. I was grateful for the pertinent observations of the right reverend Prelate in this context.

We have to remember several key things here. We are envisaging that only a modest, albeit significant, number of our people will apply to take up the new arrangements once they are introduced; the majority of regular service personnel will continue to serve on a full-time commitment basis. Personnel whose applications to work part-time are approved will do so for a temporary period only. They will remain subject to service law at all times and will be subject to recall under defined circumstances. We need constantly to bear in mind that this measure will, par excellence, help us retain and recruit the best people for defence. Currently people choose to leave when their circumstances change and the current system cannot accommodate them. We know this from extensive surveys that we have done. One therefore has to see this in the wider context.

As for unpaid leave, as the noble and gallant Lord rightly said, regulars can already request this; for example, by asking for a career intermission. While we agree that leave is of course a well-understood service arrangement, the part-time working arrangements to be delivered under the Bill go beyond unpaid leave, which is why they require special provision. They go beyond unpaid leave for very particular reasons. Under the unpaid leave arrangements, the individual has no formal level of protection from recall to either full-time duty or deployment other than that of being on leave. The right to apply to work part-time to be delivered under the Bill goes considerably beyond that. It will provide more certainty for the individual, affording them rights to remain on a flexible working arrangement which can be revoked, as I said, only under certain circumstances, such as a national emergency.

The noble and gallant Lord’s second amendment seeks to remove some of the language in new Section 329(2)(i) and replace it with wording to make it clear that only the regular can restrict their service to service in a particular area. I take this amendment to be driven by a view that the current language in the Bill would permit defence to place geographical restrictions on a regular’s service against their will—potentially—although I was grateful for the noble and gallant Lord’s concession that the present Government do not intend that, but I hope to persuade him that no Government could do it. This is certainly not the intention behind the existing language, nor is it its legal effect. Section 329 is there to provide protections for regular service personnel, so it is clear that these new regulations will be able to make provision for this new form of service only for the benefit of the regular, subject to the other restrictions permitted by the Bill. It cannot be imposed upon them. In fact, the Bill would ensure that service personnel are in control over whether to choose to apply to take up the new flexible working options. They would have the right to apply but there is absolutely no provision to make service personnel take up the new flexible arrangements.

Earl Howe

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Certainly. Although that is not the whole rationale, the provisions that we are proposing to introduce are designed to be family-friendly—for example, for women considering starting a family or those with caring commitments, or those who are bringing up a family and, for any reason at all, there are personal circumstances that create difficulties for them. That could be a very good reason for somebody to apply to work part-time on a temporary basis. So I agree with the noble Earl.

Earl Howe

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My Lords, I would be very happy to write to the noble and gallant Lord on all those points—in so far as they were not made clear in my original response—and in particular on why we need primary legislation, and perhaps explain further the reasons why we think the Bill is correctly worded in this clause. I hope that the noble and gallant Lord will allow me to do that between Grand Committee and Report, and I will of course copy in noble Lords to that correspondence.

Earl Howe

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My Lords, the first amendment in this group, Amendment 4, seeks to place in the Bill information to define how flexible working should be implemented. I agree that it is important that we have clarity over exactly how the new flexible working opportunities will be administered. I reassure the Committee that the policies and processes that will support the changes brought by the Bill have been designed by the services for the services. We have done a great deal of work with the services to develop policies that work for them and their people, and we will continue to refine them in the lead-up to their introduction in 2019 and after to ensure that they are clear and fit for purpose. In doing so, we will continue to consult our people.

As noble Lords will recall, I outlined at Second Reading how we envisage the new flexible working arrangements will be administered following their introduction in 2019. In my subsequent written responses to Peers, I also promised that my officials would publish some additional information over the summer that would explain in more detail how the new arrangements would work in practice. I hope that noble Lords have received that information and found it helpful, and that it has answered the points raised in this proposed amendment.

It might just be helpful if for the record I went through some of the processes that we envisage. We have a position on how we intend that flexible working arrangements will operate in practice. I am sure that noble Lords will appreciate that at this stage the detail remains subject to adjustment as a result of the ongoing policy refinement with the services, further work in the light of surveys and other feedback and, indeed, the need to account for the views of Parliament. In summary, however, the policy is intended to operate as follows.

We believe that regular service personnel must have completed their basic and professional training and a period of further service, defined by their parent service, before they can normally undertake flexible working. A serviceperson wishing to apply to serve flexibly will apply through the joint personnel administration system through their commanding officer to an approvals authority at the headquarters of their service. No limit will be imposed on the number of occasions over a period that the serviceperson will be able to apply to serve flexibly, although they will be restricted to having only one live application at a time being processed by the administration system. However, there will be limits on individual periods of flexible working to help the services manage the applications and people’s expectations.

We intend to limit periods of flexible working to no more than three years at any one time or to the end of an assignment, whichever is sooner. Within this period we intend to enable people to reduce their liability to serve by up to 40%, such as two days in a five-day working week of their regular full-time service. Service personnel requesting limits to their routine unlimited liability for separation from their home base will still remain liable for a maximum of 35 days separation in any one year. This will enable them to continue to undertake essential courses or participate in smaller periods of exercises.

We also intend to restrict the total cumulative time that a serviceperson can serve on flexible working arrangements. This is to maintain the principle that regular service is a full-time and unlimited commitment, while also helping to share the opportunities for flexible working among the broadest range of personnel. Currently we are planning for the total period of all types of flexible working to be limited to four years in a 12-year rolling period. The exact approvals process is likely to vary slightly by service and we are still designing certain elements of it. Currently we plan that the approvals authority will take decisions after being informed by the chain of command, the employing organisation—for example, if the person is working with another service—career managers, manpower planners and other specialists as required.

The principal deciding factor when considering applications will be the ability to maintain operational capability. The individual merits of each application will be considered and will include factors such as the type of role the person is serving in, whether the person has been warned to prepare to deploy for operation and, if appropriate, the personal circumstances surrounding the application. If an application is refused, an individual can appeal against the decision, as I mentioned earlier.

Appeals will be considered by a separate appeals authority which will operate at the headquarters of each service. The exact make-up of that body has yet to be set. The appeals authority will make its decisions informed by information from the employer, the employing organisation, the chain of command, career managers, manpower planners and other specialists. Service personnel will of course have the right to escalate their appeal to a service complaint if they remain unhappy with the decision.

The services will retain the right to recall regular service personnel from flexible working arrangements to ensure that operational capability is maintained while providing as much certainty of the arrangement for the individual as possible. Such recall will be against prescribed criteria sanctioned by the headquarters approvals authority within each service. Personnel will be subject to two levels of recall. The first will be immediate recall in cases of national emergency, and the second is curtailment after 90 days’ notice. The latter would apply where there is a significant change in the circumstances used to judge and approve the original agreement.

We continue to work on the detail but envisage that a change in circumstances would include a change to the requirement for operational capability which is affected by overall manning levels of the service or trade or any specific skills held by the serviceperson during the period of flexible working. Should any of these change substantially, the service would be able to issue a 90-day notice to recall the serviceperson to full duties, either by suspending the flexible working arrangements for a defined period to allow them to be adopted again later for the remainder of the originally agreed period or by cancelling the flexible working arrangement outright. Where these circumstances occur, they would constitute a manning crisis as a result of severe manning constraints, manpower shortages on specific operational tasks or skills shortages. All approvals, refusals and amendments to agreements between a serviceperson and their service will be set out in writing to avoid any uncertainty and to provide an audit trail. The detail I have just outlined has been published on the GOV.UK website.

As we intend to continue to refine the parameters of exactly how this policy will operate within the services by learning from their experience of operating it after introduction, it would be unnecessarily constraining to have the parameters proposed in the amendment set in primary legislation. The noble Lord, Lord Touhig, and the noble Baroness, Lady Jolly, made clear their view that this should all be in regulation, at least. The provisions that I have outlined will be set out in a mixture of regulation and policy statements, rather than exclusively in regulation.

The purpose of Amendments 6 and 18 is to require any new regulations made by the Defence Council of a kind to be introduced by Clause 1(2) of the Bill to come into force only following the affirmative resolution procedure. Amendment 6 looks to achieve this by inserting into Section 329 of the Armed Forces Act 2006 a new subsection (4A). However, I must tell the noble Lord, Lord Touhig, that due to the way in which the 2006 Act works, any amendments to the procedure would need to be by way of amendment to Section 373, as identified by the noble Baronesses in their Amendment 18.

Earl Howe

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My Lords, the introduction of new flexible working measures is designed to attract, recruit and retain people from a more diverse cross-section of society who have the knowledge, skills and experience that we need to deliver operational capability.

Currently, service personnel who have dedicated themselves to public service sometimes struggle to meet their full military commitment—for example, due to a short-term change in personal or family circumstances—and the only option in such circumstances has been to leave the Armed Forces. This represents a loss to the individual and to defence. New flexible working options aim to address this so that in such situations personal circumstances are no longer a barrier to continuing service. We believe that these measures will benefit a small but significant cohort; for example, women and men starting a family, those with caring commitments or those who wish to undertake long-term studies. Moreover, our evidence derived from external reports, comparison with other nations, internal surveys, focus groups and our ongoing flexible duties trial shows that providing our people with modern choices will help us retain highly skilled personnel who might otherwise leave and join organisations which provide these choices. In short, through these new measures we are aiming to modernise the terms of service for the Armed Forces with a view to improving recruitment and retention into the future.

Many other external factors, such as the economic climate, have the strongest influence on recruitment and retention and are likely to mask the impact of these new flexible working arrangements in the short to medium term, and we have to bear that point in mind. Defence is experiencing many of the same skills and recruitment challenges that are being faced nationally. To meet those challenges are proactively as possible, we are modernising the employment offer for our Armed Forces, as I have described. These collectively are being managed under the Armed Forces people programme, which comprises projects including the new joiner offer and enterprise approach. The new joiner offer should support and improve retention by developing a new, more modern and more relevant offer for new joiners that better supports service personnel throughout their career. We also aim to improve retention by better management of critical skills across defence through the enterprise approach project. Changes to enable members of the Armed Forces to work more flexibly originate from the flexible engagement systems project, which forms a further part of the people programme.

These amendments seek to place various obligations on defence to publish reports on the effects of flexible working on the Armed Forces. I am sure the Committee is aware that intake, outflow and strength by rank, trade and specialisation are monitored and managed on a regular basis at service level and centrally by the MoD. The MoD already publishes detailed information and analysis in the UK Armed Forces Monthly Service Personnel Statistics. This publication provides statistics on the number of service personnel by strength, intake and outflow in the UK Armed Forces, and detail is provided for both the full-time Armed Forces and reserves. We carefully monitor information on trade, specialisation and sub-specialisation by rank and service, and routinely release on a regular basis, as part of official statistics publications, a wide range of information on outflow from the UK Armed Forces.

We also publish comprehensive data in the UK Armed Forces Biannual Diversity Statistics. This statistical release presents information relating to the gender, ethnicity, nationality, religion and age of personnel employed by the MoD and meets the department’s obligations under the public sector equality duty to provide information on its workforce in relation to the protected characteristics identified by the Equality Act 2010. Information on numbers of personnel undertaking and returning from maternity and shared parental leave is also provided as part of this publication.

It is important to highlight the evidence from trials and surveys commissioned by the Armed Forces, which indicates that take-up for options that enable service personnel to work more flexibly is likely to be low in the early years of implementation. Furthermore, while the MoD promotes the importance of the Armed Forces being appropriately representative of the diverse society they exist to defend, with operational effectiveness being dependent on inclusion and fairness, we estimate that the overall numbers taking up the new opportunities will be small to begin with. Therefore, assessing any correlative impact that flexible working has on increasing diversity in the Armed Forces is likely to be difficult, particularly in the early stages. This will mean that any detailed evaluation of the impact of flexible working measures on overall recruitment and retention rates, skills retention and outflow, and diversity in the Armed Forces will be difficult to achieve in the early years of operation.

The recording requirements for any pattern of work for our Armed Forces are stipulated in policies and recorded on the joint personnel administration system—JPA. JPA is already used to process applications for existing flexible working options. There is planning in place to enable all instances of part-time working or geographical restriction by personnel to be recorded on JPA when these options are made available. It will be crucial to ensure that all cases of flexible working are properly recorded and monitored to provide personnel and commanding officers with a record of all discussions and agreements. However, since it is estimated that the number of applications is likely to be low in the early stages, collating and reporting information on a monthly basis to provide figures on the number of personnel undertaking flexible working as a proportion of the total of full-time serving members of the Regular Forces would not provide significant or beneficial data.

It is important to emphasise again that the new arrangements are aimed at improving recruitment and retention in the long term, as part of a series of projects being delivered through the Armed Forces people programme. The long-term effects of these collective initiatives should be the measure of how effective the new arrangements are, rather than short-term reporting and figures on take-up.

We judge that formal annual reporting for a small cohort would not add value or provide a real sense of the impact of introducing these new opportunities. However, my department recognises the importance of keeping the delivery and effect of these changes under continuous review, in terms of both the benefits to personnel and the impact on operational capability. We will closely monitor the rates of uptake for new flexible working options by service, rank and specialism and will carefully examine any long-term trends and links to overall retention rates and diversity.

As noble Lords will be aware, the Secretary of State is required to lay an annual report before Parliament each year outlining the Government’s progress in delivering the Armed Forces covenant. The introduction of the new flexible working opportunities falls within the scope of the covenant and we envisage that the introduction of these measures in 2019 will be monitored during the first year of implementation and will be reported on in the covenant annual report and yearly thereafter.

The noble Baroness, Lady Jolly, asked about FAMCAS and AFCAS and drilled down with some further questions. I will write to her on the questions that she asked. I will need to consult the department to understand what further information it would be possible or practical to provide her with, but what information we do have I will be happy to give her. She also asked how flexible working could be introduced within a fixed headcount. The simple answer is that we will manage the levels of flexible working permitted and therefore will be able to ensure that the right levels are maintained to deliver defence outputs. It is envisaged that capacity surrendered to flexible working arrangements will either be within reducible capacity or can otherwise be resourced through other means such as the employment of reserves. Like other organisations with part-time workers, the organisation will change over time to better accommodate flexible working.

I do not believe that it is necessary for the Bill to be amended in this way. I understand that these are largely probing amendments and I hope that the explanations and information I have given to the Committee will be helpful to noble Lords and that they will not press their amendments.

Earl Howe

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My Lords, approval of the Bill will afford regular service personnel the right to apply to vary their commitment temporarily. The new arrangements will not be mandated for service personnel. I can reassure my noble friend in particular on that point. Those who wish to continue serving on a full-time commitment will be free to do so.

The noble Lord, Lord Touhig, seeks to amend the Bill to ensure that regular service personnel will not see a reduction in their basic pay, x-factor payment or any other universal payments provided for regular service personnel as a result of the Bill. I am sure that noble Lords will agree with me that it is fair and appropriate that in the future, those regular service personnel who elect to vary their commitment should see a commensurate variation in the reward they receive. We have worked closely with the services to ensure that this variation will be above all else fair and reasonable both to those who work under the new enhanced flexible arrangements and to those who do not.

As noble Lords will recall, I made this point during Second Reading. I can also now say categorically that those who remain working on a full-time commitment will not as a result of the Bill see a reduction in their basic pay, x-factor payment or any other universal payments provided for regular service personnel. Furthermore, let me reassure the Committee that the introduction of part-time working will not be used to lower the full-time equivalent basic rate of pay, the X-factor allowance or any other universal allowances payments available to personnel.

During the Bill’s Second Reading, I provided reassurances that regular service personnel undertaking part-time working would retain those entitlements available to full-time regulars. Service accommodation in particular is an important provision for many personnel and their families that helps enable their mobility in support of defence capability. It is an important part of the offer for our people and an entitlement that the noble Baroness, Lady Smith, seeks through her amendment to ensure will still apply to personnel who successfully apply to work part time. To support my earlier reassurance, I can also confirm that our current policy makes provision for all regular service personnel to have an entitlement to service accommodation commensurate with their personal status category and other qualifying criteria. Service personnel will retain an enduring liability for mobility when working part time because they will still be subject to the same moves associated with new assignments as others in the regular Armed Forces. Therefore, they will remain entitled to service accommodation as under our existing policy and there is no need to alter the entitlement to accommodation for those who undertake part-time working; they will continue to be able to access service accommodation under the same criteria as full-time regulars.

I spoke earlier of the future accommodation model project that is due to be introduced in 2019 as part of the defence people programme. That project aims to create a more fair, affordable and flexible model for providing accommodation for our people while giving them more choice about where, how and with whom they live. It will also provide a subsidy to help more personnel live in private accommodation, including by helping to meet their aspirations for home ownership. Eligibility under the future accommodation model will not be altered for those personnel who work part time or subject to geographical restriction for a period. The noble Baroness raised the question of accommodation pressures as part-time working is rolled out. My answer to her at present is that given the anticipated low take-up, we do not expect additional pressures on housing to any significant degree.

Similarly for service personnel who opt to leave the Armed Forces, access to resettlement and employment support for up to two years prior to their discharge date and for two years afterwards will remain an entitlement for those who undertake part-time working. We want to ensure that our people transition successfully from an Armed Forces career where they receive world-class training to a civilian one where they can add real value to society because we have good quality people with developed skills who can really benefit external organisations. The noble Baroness, Lady Jolly, has sought to amend the Bill to protect the entitlement to resettlement under the new measures, and I can confirm that there will be no difference in resettlement entitlement for full-time service personnel and those regular personnel who work part time and/or restrict the amount of time that they are separated from their home base. The entitlement to resettlement is currently based on the number of years of service between the date of enlistment and the date of discharge. This will not change for those who take the opportunity to work flexibly on the introduction of the new flexible working opportunities. I can also confirm that there are no plans proportionally to calculate resettlement entitlement for personnel who undertake flexible working based on their actual number of days of work. Our resettlement policy guidance will be updated on the introduction of the new flexible working arrangements to state that resettlement support will remain the same for those who take advantage of them so that applicants are fully aware of their continuing entitlement.

It will be difficult to assess what impact the new flexible working arrangements might have on resettlement services in light of the fact that entitlements will not alter. Additionally, as the noble Baroness, Lady Jolly, will recall, I said at Second Reading that we expect a small yet significant number of personnel to undertake flexible working. For these reasons the impact on resettlement entitlements is likely be minimal and challenging to measure.

Earl Howe

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My Lords, as the noble Lord, Lord Touhig, has explained, this amendment seeks to require the Secretary of State for Defence to lay a Statement before both Houses of Parliament, within six months of this Bill coming into force, outlining the implications of this Bill, once enacted, for the Armed Forces covenant. This amendment would also require the Defence Secretary to consider whether the Armed Forces covenant, or any of its supporting documentation, requires revision to reflect the measures in the Bill. Finally, it seeks to commit the Defence Secretary to ensure that the annual report on the covenant reflects the contribution of this Bill to meeting Armed Forces covenant goals.

I share the view of the noble Lord about the importance of measuring and reporting on the impact of the changes that will be introduced through this Bill. I want to ensure that it is done in the most appropriate and effective way for both the MoD and Parliament. As I mentioned at Second Reading, and several times today, we expect a small but significant number of our people to take up the new opportunities introduced by the Bill.

For this reason and, I submit, the disproportionate administrative burden we believe it would create, we judge that there would be little value to be gained from producing a statement only six months after the Act has come into force. The long-term aim of providing these new arrangements, alongside a range of other measures in the MoD, is to modernise the terms of service and ultimately improve Armed Forces recruitment and retention, which I am sure all noble Lords would welcome.

In addition to this, evidence from our ongoing flexible duties trial suggests that in particular those with families have benefited from the greater stability that comes from having more choice over how they serve. This latter prospect has been welcomed by the services’ families’ federations, which view this as an important part of the drive for a better work/life balance among service families. It is these specific areas that I have just mentioned rather than the concept of the Armed Forces covenant itself that will feel the direct impact following the introduction of the new flexible working arrangements. We therefore do not anticipate that there will be any need to revise the wording of the covenant or its supporting documentation. As noble Lords will be aware, the Secretary of State is already required to lay an annual report before Parliament each year outlining the Government’s progress in delivering the Armed Forces covenant and, as I mentioned earlier, it is likely that a future report will include a section on the introduction of the measures included in this Bill and their effect. That would be entirely appropriate. For this reason, and the others I have already outlined, it seems unnecessary to legislate that the Secretary of State should report separately on the introduction of the new measures that the Bill will introduce. I do not therefore believe it is necessary for the Bill to be amended as suggested by the noble Lord. Following these assurances, I hope that he will agree to withdraw his amendment.

The Minister of State, Ministry of Defence (Earl Howe) (Con)

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My Lords, I said in Committee that the Government would reflect further on the recommendation from your Lordships’ Delegated Powers and Regulatory Reform Committee. That committee’s recommendation is to the same effect as the amendment of the noble Lord, Lord Touhig, and indeed the proposed amendment of the noble Baronesses, Lady Smith and Lady Jolly.

I am grateful to both the noble Lord and the noble Baroness for their thoughtful contributions to this Bill. I recognise the hesitations of my noble friend Lord Attlee around the affirmative procedure in this context, but the Delegated Powers and Regulatory Reform Committee rightly highlighted to the House that some of the new Defence Council regulations to be made under this Bill will go beyond matters of pure procedure. We have considered the committee’s recommendation and its reasons for making it, and we have decided on balance that it is right to accept it. I acknowledge the strength of feeling in this House to ensure appropriate scrutiny of those forthcoming regulations.

While the intended effect of the amendments of the noble Lord, Lord Touhig, and that of the amendment of the noble Baroness, Lady Jolly, is exactly the same, I hope that the noble Baronesses will not be unduly disappointed if on this occasion I agree to accept the amendments of the noble Lord, Lord Touhig, to the Bill, which I am pleased to do.

Earl Howe

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My Lords, I begin by apologising to the noble and gallant Lord, Lord Craig, and to the House for the guidance that I gave him in my letter following Committee when I said that according to the advice I had received, it would not be possible to amend the Long Title of the Bill. That advice resulted from an honest interpretation of the Companion to the Standing Orders. It was given in good faith but it was clearly incorrect in light of further advice from the Public Bill Office, and I am sorry.

These amendments stem from concerns previously expressed by noble and noble and gallant Lords over the use of the phrase “part-time” in the Bill; namely, that its use serves to belittle the reputation of our Armed Forces and perhaps even puts those personnel who choose to work part-time at risk of some form of denigration from colleagues amounting even to bullying and harassment, because the Armed Forces will see part-time working as somehow less worthy. I have to say to the noble and gallant Lord that I do not agree with that analysis, and nor do the service chiefs.

It is important to appreciate the context of what we seek to do. The measures in the Bill are part of a series of steps we are taking to modernise the Armed Forces’ terms of service. They are entirely of a piece with some of the other forward-looking steps we have taken in the recent past, such as lifting the ban on women in close combat roles, which have helped to further modernise our Armed Forces, making them a more attractive career choice to wider sections of our society. We must continue down this path if we are to be truly representative of the people whom we serve.

As I have mentioned previously, this measure has the full support of the service chiefs. Our use of the word “part-time” is absolutely deliberate. The meaning of statute has to be clear. We want to be clear to Parliament and to our people that part-time working is indeed what we are introducing, albeit with certain constraints to protect operational capability. Personnel will be able to reduce their commitment to less than full-time and their pay will be adjusted accordingly. Whichever way one tries to explain it, this is part-time working and that is the main reason why the Bill is drafted as it is and why we continue to believe this wording to be appropriate. The noble and gallant Lord’s amendment seeks to disguise what we plan to do. I do not think that legislation should ever go down that sort of path. Legislation should make its meaning clear.

The noble and gallant Lord will no doubt argue that his amendment encapsulates the Government’s policy in different words. It does not. The phrase,

“take breaks from full-time service”,

could describe a variety of different things, including some of the flexible working opportunities already in place, such as unpaid leave, career intermissions and maternity leave. We are introducing something through the Bill that is distinctly different from those things and therefore the way we describe it needs to be very clear. The services are not afraid of plain language and plain language is what we are providing here.

It may help if I repeat what I mentioned in my round-robin letter—that “part-time” has been used in a previous Armed Forces Act. This is not an unprecedented use of the phrase in our legislation. It occurs, for example, in Section 2(1A) and 2(1B) of the Armed Forces Act 1966. It has never caused problems in the past. Circumlocution is therefore not only a wrong approach in my view, it is also unnecessary.

When the noble and gallant Lord advances an argument, I take it seriously, as does the Ministry of Defence, but I cannot agree with his premise. We do not accept the argument that the use of “part-time” will denigrate the individual who works under this arrangement, or denigrate the services in any way. Neither do we agree with the suggestion that those who choose to work part-time for a limited period are not the type of people we need in today’s Armed Forces. On the contrary, it is arguable that those who choose to work part-time, for a temporary period, for reduced pay, rather than leave the services, display an admirable commitment to serving their country. This is precisely the calibre of person that we need to retain and recruit in today’s Armed Forces.

Times move on. Working part-time is a modern, widely recognised and practised working pattern, including for those whose service and work are a vocation, to pick up the point made by the noble Lord, Lord West, quoting the noble Viscount, Lord Slim. As noble Lords may recall, I held a briefing session on 11 July this year, which some noble Lords attended, where two serving commanding officers were also in attendance. Both those officers genuinely welcomed the introduction of part-time working, which they saw as another tool to help us look after our people at times in their lives when they need it most. They had no difficulty with either the concept or the terminology we are using to describe it. The reason that they had no difficulty is that these new measures and others that we are introducing elsewhere to help improve the overall offer to our people will encourage service men and women to stay and may attract others to join.

Earl Howe

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My Lords, I believe that I spoke to an identical amendment as the first in this group in Grand Committee—it was then Amendment 9, I think. I hope that what I am able to say today will reassure the noble Lord completely. The Bill will allow the Defence Council to make regulations to give regular service personnel the right to apply to vary temporarily the terms on which they serve. Specifically, the Bill will allow us to introduce both part-time working and a new form of geographically separated service into the Armed Forces, which together we refer to as “flexible working”.

I am grateful to those noble Lords who have expressed their agreement with the principle that it is fair and appropriate for those regular service personnel who elect in the future to vary the terms on which they serve to see a commensurate variation in the reward that they receive.

I should say up front that nothing in the Bill enables us to do what the noble Lord fears we might do. At present, we envisage that those who work part-time will have their pay proportionately reduced, and those who reduce their liability for separated service will have their x-factor reduced by an appropriate proportion, which we will discuss with the Armed Forces’ Pay Review Body.

As I said in Grand Committee, we have worked—and continue to work—closely with the services to ensure that any reduction in pay, or other benefits, for those who successfully apply to work part-time, or reduce their liability for separated service temporarily, will be, above all else, fair and reasonable to those who work under the new arrangements as well as to those who do not. For reassurance, I will repeat what I said at Second Reading and in Committee: the Bill will not result in any reduction in the basic pay, x-factor or other payments available to regulars who do not take up these new flexible working arrangements. There is a simple reason I can be categorical about that: the Bill deals only with the proposed new types of flexible working. The legislative provisions that govern the pay and conditions of full commitment regulars are contained in different sections of the Armed Forces Act 2006—as the noble Lord will know, having very successfully taken that Act through this House as a Minister in the then Government.

As the noble Lord of course understands, we envisage at present that those who work part-time will have their pay proportionately reduced, and those who reduce their liability for separated service will have their x-factor reduced by an appropriate proportion. As I have said, noble Lords will be aware that the Armed Forces’ Pay Review Body has a responsibility to make recommendations on service pay. It does that through its annual report, which makes recommendations to the Government on an annual Armed Forces pay award, based on a body of evidence gathered from service personnel and their families and the MoD. It also commissions its own analysis and research from other bodies. Accordingly the MoD will engage with the AFPRB and submit a paper of evidence for its consideration on the changes we need to make, in time for the introduction of the measures contained in this Bill from 2019.

I hope there are no lingering concerns that service personnel may be made to work part-time as a savings measure. The regulations under the Bill will make it clear that any application for part-time working or restricted separation must be made by the serviceperson. I am therefore clear that the Ministry of Defence will not be able to impose a change in working pattern on individuals, and that any such change will have to be instigated by the individual. I can reassure the noble Lord, Lord Touhig, that the measures in this Bill will be considered alongside the existing provisions for flexible working that he referred to, so that service men and women will have those options open to them and can accordingly choose the road they go down.

Amendment 6 seeks to protect existing flexible working arrangements. The new flexibilities that this Bill will introduce are part of a series of steps we are taking to modernise the conditions of service we offer to those who serve, and for those who are considering a career in the services. The long-term aim, as I have mentioned, is to improve recruitment and retention in the Armed Forces. We are constantly looking forward and trying to reflect wider best practice in the development of our personnel policies, and we are making good progress. This is the least that our people deserve. In terms of the flexible working options that the Ministry of Defence already provides, such as variable start and finish times, home working and compressed hours, we have over the past two years continued to add to and refine the policies that support them to ensure that they are the best they can be, and we will continue doing so.

As with any HR policy operated within other organisations, it is essential that we have the ability to manage and adjust our flexible working policy to meet the emerging needs of our people and the services. These policies are published in Joint Service Publication 750, a document available to all personnel, to ensure clarity, coherence and transparency for both service personnel and their chain of command. The House can be absolutely assured that we have no intention of withdrawing these existing opportunities for flexible working, which are now well published and in operation in each service. Some have been on offer to our people since 2005 and others have been developed to meet their need for a degree of flexibility in the modern world. To reduce the flexible working options, which is the implied concern in the noble Lord’s amendment, would be a retrograde step given our objective of modernising the Armed Forces offer and would run counter to our aim of increasing the flexibility available to meet our people’s needs.

To be crystal clear, though, to your Lordships, the flexible duties trial that is not part of JSP 750 policy and has been run to help inform the new part-time and geographically restricted service will of course cease when the new arrangements become available to supersede it. However, that is the only exception to what I have laid out. Following these assurances and the circumstances I have outlined, I hope that the noble Lord, Lord Touhig, will feel comfortable in withdrawing his amendment.

Earl Howe

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My Lords, I fully agree with the noble Lord, Lord Touhig, and the noble Baroness about the importance of measuring and reporting on the impact of the changes that will be introduced through this Bill. As I have mentioned a number of times previously, we expect a modest, yet significant, number of our people to take up the new opportunities this Bill will introduce. Therefore, we must ensure that our reporting on this subject is both appropriate and effective for the MoD and Parliament.

I am pleased that noble Lords recognise that the long-term aim of providing these new arrangements, alongside a range of other measures, is to modernise the terms of service and, ultimately, improve Armed Forces recruitment and retention. As we have discussed previously, the changes we are introducing do fall within the scope of the Armed Forces covenant. Noble Lords may recall that I said, in Grand Committee, that it was likely that a future report on the Armed Forces covenant would include a section on the introduction of the measures included in this Bill and their effect.

The current wording of Section 343A, inserted by the Armed Forces Act 2011, which places the obligation on the Secretary of State to lay an annual report on the covenant before Parliament, directs him in preparing the report to,

“have regard in particular to … the unique obligations of, and sacrifices made by, the armed forces; … the principle that it is desirable to remove disadvantages arising for service people from membership, or former membership, of the armed forces”.

It also advises the Secretary of State to include,

“such other fields as the Secretary of State may determine”.

We judge that this broad wording is sufficient to deliver the specific outcomes that the noble Lord seeks and, therefore, does not need amending as proposed.

There is a good reason why I am confident in saying that. A look back at the five Armed Forces covenant reports that have been produced since 2011 confirms that they contain a very broad spectrum of information and data on policy developments that have fallen within the covenant’s scope. A good example of that is the Forces Help to Buy scheme, introduced in 2014, under the new employment model. The scheme has featured regularly in annual reports, and the figures for August 2017 show that, since its launch, more than 12,000 of our people have benefited from the scheme, having received some £184 million to help them get on, or stay on, the property ladder.

A key feature of the reporting has been a description of the nature of the policy change being brought in and, where possible, a measure of its impact following introduction. I can undertake that we will take the same approach to reporting on the introduction of the flexible working opportunities from 2019. Those opportunities will, in the long term, improve recruitment and retention in the Armed Forces and, in the near term, our people will see improvements in their terms of service, and they will benefit from the increased level of personal control over their careers that the new flexibilities will bring. We will ensure that we capture the introduction of the policy change in reports on the Armed Forces covenant and, where possible, a measure of the impact following its introduction from 2019 onwards.

For these reasons, we judge—and I hope the noble Lord will draw the same conclusion in light of what I have said—that it is unnecessary to create legislation requiring the Secretary of State to report on the new measures that this Bill will introduce. I hope, following the assurances I have given, that the noble Lord, Lord Touhig, will agree to withdraw his amendment.

Earl Howe

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My Lords, Amendment 9 is similar to the amendment to which I spoke in Grand Committee—I think it was Amendment 13 on that occasion—which sought to amend the Bill to ensure that personnel who successfully apply to work part-time will still be entitled to service family accommodation and resettlement support.

The noble Baroness, Lady Smith, will recall that during discussions in Grand Committee I provided assurances that regular service personnel undertaking part-time working would retain the entitlements currently available to full-time regulars. I was able to give those assurances because providing our people with service accommodation is pivotal to the work we are doing to enable personnel and their families with mobility in support of defence capability.

To support my earlier reassurances, I stress again that regular service personnel who successfully apply to work part-time following the introduction of these new measures will be entitled to service accommodation commensurate with their personal status category and other qualifying criteria in the same way as their full-time colleagues. There is no reason to alter the entitlement to accommodation for those who undertake part-time working in the future since these individuals will retain an enduring liability for mobility and will still be subject to the same moves associated with new assignments as others in the regular Armed Forces.

Earl Howe

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That the Bill do now pass.

The Minister of State, Ministry of Defence (Earl Howe) (Con)

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My Lords, in moving that the Bill do now pass, I express my appreciation to all noble Lords, noble and gallant Lords and right reverend Prelates for their interest in the Bill and for their thoughtful contributions to what have been constructive debates during its passage through your Lordships’ House. I am grateful for the positive engagement and support of noble Lords on the Opposition Benches and from around the House.

The Government have responded positively to the concerns of this House that the Defence Council regulations should be subject to the affirmative procedure. I know that the noble and gallant Lord, Lord Craig, and others will be disappointed with our response to his concerns about the use of the term “part-time” in the Bill. I hope that in due course he will see that his fears about people disparaging the good name and full commitment of the Armed Forces are unfounded, once people are able to apply to work part-time or have protection from being separated from their home base for prolonged periods.

Of course, encouraging the right cultural attitudes and behaviours in the Armed Forces will play an important part in ensuring the success of these measures. As I said at the outset, the Bill is designed by the services for the services, and all three remain involved in the plans to make this a success. We are immensely proud of the achievements of our Armed Forces; they work hard for us and we owe them a great deal. Flexible working will provide our brave and courageous service men and women with an opportunity for some respite from their full-time commitment when they need it most. This Bill is for them and I beg to move.

Earl Howe

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My Lords, I much appreciate the remarks from the Front Benches opposite and reciprocate the warm feelings that have just been expressed by the noble Baroness, Lady Jolly.

I hope that both noble and gallant Lords who spoke will accept that I have listened with care to the arguments they put forward. The Government have taken due note of their concerns about the use of “part-time” in this legislation. We have had debates in Committee and on Report, and the matter was settled by a vote on Report. There is a convention in your Lordships’ House that at Bill Do Now Pass we should not continue the debates of previous stages. Nevertheless, in so far as I have been asked questions by noble and gallant Lords and the noble Lord, Lord West, I undertake to write after the conclusion of this stage of the Bill. Let me make it clear that the service chiefs fully support this legislation. As I said in my opening remarks, the Bill is designed by the services for the services. All three remain involved in the plans to make this a success and I hope that all noble Lords will agree that that is now the imperative.