Armed Forces (Flexible Working) Bill [HL]

(Limited Text - Ministerial Extracts only)

Report stage (Hansard): House of Lords
Wednesday 11th October 2017 Lords Chamber

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

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.

[Lord Touhig]

My Lords, this has been a very brief but successful debate all round, I think. I am grateful to the noble Earl, Lord Attlee, for having shared his views with me on a number of occasions. I understand his concerns. I have been in this House just seven years, but one of the striking contrasts I have found with the other place is our total and utter commitment to scrutinise and hold government to account, whether it is on large issues about platforms or issues that the noble Earl may consider to be of a much lesser degree of importance. We will want to continue that. I am grateful for the support, and I am very grateful to the Minister for accepting the amendment.

I pay particular tribute to the noble Baroness, Lady Fookes, who chaired the committee that brought forward the recommendation to which the Government have certainly listened. She has done a tremendous job, and we all wish her well and hope that she is back soon.

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[Lord Touhig]

My Lords, before I comment on the amendment, I say at the outset that as I have reflected and listened to the debate I was very much struck by the point made right at the beginning by the noble and gallant Lord, Lord Boyce. His words convinced me that there is nothing in civilian life that compares to life in the services. We in this House and in the country must recognise that when you join the Armed Forces, it is not like joining Barclays or Tesco; you are joining an organisation in which you can put your life on the line to defend our country. We in this House and in the whole country, whenever we talk about defence, must remember that and remember that it is people we are talking about.

The noble and gallant Lord, Lord Craig of Radley, when he moved his amendment on this matter in Grand Committee, raised his concerns about the term “part-time”, questioning, as the noble Baroness, Lady Jolly, has said, whether it had,

“the potential for misunderstanding and for belittling the reputation of the Armed Forces”.

He therefore asked a very simple question:

“Could a better, less questionable word or phrase be used instead?”.—[Official Report, 12/9/17; col. GC 69.]


That is at the heart of this debate.

In Grand Committee I made it clear from these Benches that we are sympathetic to the noble and gallant Lord’s amendment, and that position remains unchanged. The men and women of our Armed Forces are truly exceptional. That is accepted around the world, and it is the duty of any Government to protect this reputation. However, terminology is all-important in these matters—a point I recall the Minister also making. Communication and language is complicated enough. Call me old fashioned, but I am sure that I am not alone in this House when I say that plain speaking is the best way to communicate.

In Committee we urged the Government to respond and come back at Report. In the interim, authors of various amendments in Grand Committee received very thoughtful, helpful letters from the Minister. While I accept that this is not the only concern behind the noble and gallant Lord’s amendment, I was pleased to see the Minister stress that the Bill could not be used by a future Administration to force an individual into part-time working. I hope that he will repeat that today.

Of one thing I am certain, and again I echo the words of the noble and gallant Lord, Lord Craig, in Grand Committee:

“First, let me confirm my acceptance in principle of flexible schemes which are viable, enjoy service support and do not detract from the operational 24/7 capability of the Armed Forces”.—[Official Report, 12/9/17; col. GC 69.]


We would certainly endorse that, but I am sure that I am not alone when I say that I do not want to jeopardise the opportunity to put the simple yet powerful aspiration that the noble and gallant Lord articulated so well into action. I hope that the Government will have a positive response to help us this afternoon.

[Earl Howe]

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.

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17:05

Division 1

Ayes: 56

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Crossbench: 46
Labour: 4
Bishops: 2
Conservative: 2
Independent: 1
Green Party: 1

Noes: 181

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Conservative: 164
Crossbench: 9
Independent: 5
Democratic Unionist Party: 3

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[Baroness Jolly]

My Lords, in this group I will speak to Amendment 7. We all want flexible and part-time working to be a success. Therefore it is important to monitor whether these arrangements are helpful in convincing some who may not have ordinarily thought of joining the Armed Forces so to do—I beg your Lordships’ pardon. I am very sorry, I am speaking to the wrong group.

[Earl Howe]

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.

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[Baroness Jolly]

My Lords, I apologise to the House for jumping the gun earlier.

We all want to make flexible and part-time working a success, and it is therefore important to monitor whether these arrangements are helpful in convincing some who might not ordinarily have thought of joining the Armed Forces so to do, or in persuading some existing members to remain in the Armed Forces if they were considering leaving. The Armed Forces covenant annual report is the report on the state of the armed services to the nation, so I ask the Minister not to close the door on this level of reporting. It would be helpful if he could assure the House that, in the future, the MoD would consider doing just this.

[Earl Howe]

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.

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[Lord Touhig]

My Lords, I am grateful to the noble Baronesses, Lady Smith and Lady Jolly, for tabling a further amendment on service accommodation. As the noble Baroness, Lady Smith, noted in Committee, there are already significant pressures on service accommodation, and that is before we even begin to consider the move to the future accommodation model from 2019.

I will not go into the detail about our concerns on the future accommodation model, but clearly there are urgent questions for the Government to answer on how the Bill will affect personnel who rely on service accommodation, particularly when the system is shaken up. There will also be more questions for the Government to answer in the future as the new system is rolled out. I am therefore glad to see the addition of the second part of Amendment 9, which would require the Secretary of State not only to provide a periodic snapshot but to be proactive in anticipating future accommodation needs. I hope that the Minister will provide us with some answers—perhaps in a further round of letters before Third Reading—and offer a firm commitment; it is important that these things are reported back to Parliament.

[Earl Howe]

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.