Armed Forces (Flexible Working) Bill [Lords]

Lord Beamish Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 29th January 2018 Commons Chamber

The picture is similarly disappointing for black, Asian and minority ethnic personnel, who now represent 7.5% of the regular forces.

[Mr Kevan Jones (North Durham) (Lab)]

Does my hon. Friend agree that the reason why the female intake is so important is that we have a pretty atrocious record of females getting to senior positions in all three services? If we are to change that, we need young women joining now.

[Gerald Jones]

My hon. Friend is absolutely correct, and I wholeheartedly agree with him.

This highlights more than ever that active steps need to be taken if we are to reach the targets that are in place. The new advertising campaign for the Army is a good example of that. In spite of the negative reaction in some parts of the press, we welcome this new campaign and think that it is quite right that the Army does not limit its recruitment pool, but looks to get the best people from across society.

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[Toby Perkins]

I could not agree more with the hon. Gentleman. I am too much of a traditionalist to call him an hon. Friend in this place, but he knows I call him a friend elsewhere. I agree entirely with what he says about the importance of locality. We could have a wider debate about whether the Sherwood Foresters should have been put into the Mercian Regiment. When I was on the armed forces parliamentary scheme, we talked about our local regiments, and it became clear that the Mercian Regiment is considered to be the local regiment for people over an incredibly diverse geographical split.

All the more reason, therefore, where information about the original home address of all the new recruits clearly exists, for that information to be made available. That would enable MPs to be part of the programme of trying to drive recruitment and to take pride in the level of recruitment in their area. Just imagine, if we had three MPs all within a few recruits of each other as we approached the end of the year, how much we could be driving such a programme. It would be a real force for good.

If geographical challenges were thrown up in relation to communities—religious or race communities—or areas where the Navy or the Air Force particularly recruit, and the figures were available to all of us, it would put positive pressure on the Government to take action on such things. We talk about diversity, and it seems to me that this is one of the ways in which we could drive it. To sum up, I would be very interested if the Minister would consider the idea of making the information that currently exists publicly available.

[Mr Kevan Jones]

As I said in Committee, I broadly welcome the proposals. At the top of the armed forces and obviously at ministerial level, there is a recognition that society is changing and that if we are not only to attract people to the armed forces but to retain them, we need flexibility in the way in which they are employed.

The new clause moved by my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones) is very clear, and I cannot understand what the objection to it could be. We need to ensure that one of the main aims of flexible working is to attract more women into our armed forces, but without being able to monitor that through the Department producing reports, I am not sure how we can gauge whether it is a success. The Minister may say that we could rely on tabling parliamentary questions, but I have to say that the quality of the answers from the Department recently has not been great, and it takes two or three attempts to elicit any answers. I do not see anything wrong with how the new clause is structured. It is a matter of making sure that we monitor what is going on.

The same applies to the new clause tabled by the hon. Member for Glasgow North West (Carol Monaghan). The other side of this issue is about knowing why part-time or flexible working is refused. In other workplaces, people refused this type of thing have a course of redress. It is important to be able not only to see whether flexible working proposals are being used, but the reasons why they are not being implemented, which could lead to a lot of dissatisfaction. It will be important to have some oversight to ensure that we know if, for example, people leave because at a certain level in the Army or other armed service they decide that they do not like it.

On the broader issue of armed forces recruitment, my hon. Friend the Member for Chesterfield (Toby Perkins) raised some interesting points. We are failing on recruitment, and the MOD is now reverting to the usual answer, which is to say, “The reason why we are not attracting people is the economic upturn and we are in a very competitive environment.” That is an old chestnut, and I think I even used it on some occasions when I was a Minister. I am sorry, but that is not the reason. The fundamental issue is that the privatisation model used for recruitment has failed and, as was mentioned earlier, it has also broken the link to local areas.

My hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) raised the important point that flexible working is part of a bigger package, which is not only about career opportunities for individuals, but about accommodation. In Committee and when we debated the Bill previously, the Minister talked about the future accommodation model. I must say that he is going to have to get on with it, because anyone who reads today’s National Audit Office report on Annington Homes will find that it does not make for very pretty reading. This was one of the worst decisions ever taken by—I have to say—a Conservative Government in 1996, and the legacy it leaves for not just this Government but future Governments is quite frightening.

Ministers think that the future accommodation model is the way out, and I hope it is, but it will have to be done creatively. To look at one statistic alone in the report, if the discount the MOD currently gets is reduced from 58% to 38% when it comes up for renegotiation in 2021, that will cost the MOD and the taxpayer an additional £84 million from a budget that is already very restricted. There will have to be some very creative thinking about how to extract the Government from that contract, but it should not be done at the expense of servicemen and women who rely on accommodation as part of their package. As I said in Committee and the last time we discussed this in the House, I am not opposed to a new accommodation model, but there are two issues: one is that it will take time to introduce; and the other is that it will cost money.

I do not know whether the issue of accommodation will be a priority in the current MOD review, but I ask Ministers to consider it an important part. As my hon. Friend the Member for Stoke-on-Trent North rightly said, we concentrate a lot on equipment and it is quite right that we should have the equipment that people need. However, we can have all the equipment in the world, but if we do not have skilled, highly trained personnel behind the equipment—if we do not retain people and keep them, and more importantly their families, happy—we are not going to be successful.

To finish, I would urge that personnel are seen as an important integral part of our defence effort, and nothing should detract from that. The Government have created their own mess with the budget for it. I wish them and the Defence Secretary well in trying to sort this out and in pleading for more money from the Treasury. The current Chancellor was the Defence Secretary when some of these decisions—chickens that are now coming home to roost—were taken. At the end of the day, these are the people we rely on to keep us safe, and the men and women of our armed forces and their families are the ones we should always bear in mind.

[The Parliamentary Under-Secretary of State for Defence (Mr Tobias Ellwood)]

It is a pleasure to be in the Chamber for the Report stage of the Armed Forces (Flexible Working) Bill and to see again right hon. and hon. Friends and colleagues who have been on this journey from the very beginning. I have listened carefully to those speaking in support of new clauses 1 and 2 and amendment 1, which I will come on to specifically in a moment. Lots of views have been put forward that are technically beyond the scope of a Report stage, but that does not prevent hon. Members from raising such points, which are all valid. It reflects the House’s commitment to understanding and indeed scrutinising defence matters as a whole, as well as matters being considered on Report.

There has been much talk about recruitment on a geographical basis and understanding the numbers. I am pleased to be joined on the Front Bench by my right hon. Friend the Minister for the Armed Forces, who is responsible for this issue and is looking at it very carefully indeed. I say this as a former infanteer. The history of our armed forces—indeed, the Army—across Britain varies depending on whether the unit in question is a corps, a service, or indeed an infantry regiment. There are some huge and wonderful geographical connections, including with my own regiment, the Royal Green Jackets, going back to the Rifles and the Ox and Bucks regiment and so forth. Then there is the RAF and the Royal Navy, which recruit nationally.

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[Mr Ellwood]

My hon. Friend, if I may call him that, makes an important point. I had the opportunity to visit Belfast recently for Remembrance Day, which was very moving indeed, and I know that the Minister for the Armed Forces is to visit Belfast shortly.

Let me turn to the group of new clauses and amendments we are debating. I welcome the opportunity to speak again about whether there is benefit to imposing a statutory requirement to evaluate and report on the impact of the new flexible options on the armed forces. The size and strength of our armed forces is of course important. It has been a recurring theme in recent debates, most recently in Westminster Hall. I congratulate my hon. Friend the Member for Aldershot (Leo Docherty) on securing that important debate, and I pay tribute to all who contributed. The Minister for the Armed Forces said in that debate that we must do everything we can to persuade our young people that the armed forces remain a great place to work.

Recruitment remains a challenge for the armed forces, as has been reiterated today. We face strong competition from other employers. We acknowledge that, but we also acknowledge that we can do more to encourage our people to stay, so that we do not lose their valuable skills and experience. That is why we are responding with a range of short and long-term initiatives to ensure that the offer of a career in the armed forces remains competitive. This Bill will help by enabling us to make the changes necessary to enable our armed forces to work flexibly, reflecting the realities of modern life.

The amendments and new clauses in this group revisit the theme of placing various obligations on the Ministry of Defence to publish reports on the effects of flexible working measures on the armed forces. These measures involve a major change of approach to the terms under which some of our brave armed forces serve this country and are an important part of how we modernise our armed forces. The changes are as important as some of the other modernising steps taken in recent years, such as our change in policy on homosexuality, introduced in 2000, and our decision in 2016 to allow women to serve in close combat roles. The measures we are considering are another positive step in the right direction and are aimed at making serving in the armed forces a more attractive proposition, both for those who already serve and those considering serving.

What we propose in this Bill lies at the heart of our armed forces covenant. For that reason, Earl Howe committed during the Bill’s passage through the other place to report on the impact of the new measures in future armed forces covenant annual reports. I commend this to hon. Members as an appropriate place for reporting on the impact of the new measures. Indeed, the latest report, published in late December 2017, trailed the introduction of the measures in this Bill. In debates and in the information we have published, we have been clear that the introduction of these measures is not a silver bullet that will instantly resolve the recruitment and retention challenge that we face—and that the hon. Gentleman who is about to intervene has raised.

[Mr Kevan Jones]

The publication of that information is obviously a welcome step. The Minister says that the report will talk about progress, but will it produce the statistics or, more importantly, the numbers declined and the reasons for that, as would be required under new clause 2? If the good intentions behind this Bill are not followed through, we could have people declined flexible working, which could lead to more disenchantment rather than success.

[Mr Ellwood]

If I may, I will come to how we recognise and acknowledge the impact of the Bill, which I think will answer the hon. Gentleman’s question.

We believe that these measures, along with a range of others that the Department is introducing, will impact on recruitment and retention, not immediately but in the longer term. We should also be clear that we are competing with other, wider societal factors that are affecting our ability to recruit and retain, such as record youth employment and a smaller number of 16 to 24-year-olds entering the workforce over the next few years. This is an ongoing journey of change, which will be undertaken at a steady rather than a high-speed pace, against a background of continuing societal change. However, we fully recognise the importance of maintaining effective metrics following the introduction of these measures, to enable us to judge how well they are working and whether we need to make other changes.

[Mr Ellwood]

My hon. Friend makes an important point, which I will perhaps touch on in more detail on Third Reading, when we come to it. It is important to recognise that the conduct of wars is changing. The type of people we need to recruit is also changing, and he gives an excellent example of the need for us to improve our cyber-capability. A great example of that is not necessarily to train in-house, but to recognise that there are high-end skills in the civilian sector that we can introduce through greater use of reservists.

[Mr Kevan Jones]

Let me ask a clear question: what is the resistance to producing these statistics? The Minister talks about a matrix, whatever that means in civil service-speak, but this is a pretty straightforward question.

[Mr Ellwood]

It is a straightforward question, and I did tell the hon. Gentleman that I would get to it shortly. I then gave way to another Member and he asked me the same question again. If I can make a little progress, before he asks me a third time, I am sure we will get to where we want to be.

We absolutely recognise the importance of keeping the effect of these changes under continuous review, in terms of the benefits to our personnel and the impact on recruitment, retention and diversity. I remind hon. Members that the overall number of personnel taking up the new opportunities will initially be small and that flexible working is but one of several initiatives aimed at improving recruitment and retention in the longer term. It would therefore be extremely difficult to isolate the impact on recruitment and retention that is due solely to the Bill. Introducing a system of measurement would be difficult and would delay what we are trying to achieve.

[Mr Kevan Jones]

That is complete and utter nonsense. I accept that the numbers might be smaller as the system gets going, but surely there must be a way of logging this. I do not know why the Ministry is so opposed to producing these statistics. Clearly, in the early days, it could say that the system was bedding in. The Minister is going to get freedom of information requests and parliamentary questions about this, so he might as well produce the information.

[Mr Ellwood]

I fear that unless I say something to win the hon. Gentleman over, we might go around this merry-go-round many times. I will certainly look at this, but in Australia and other countries that have successfully gone down this road, the initial take-up has been so small that introducing a measurement system would delay the initiative’s introduction, and the numbers will be so small that it would be difficult to determine whether the effect is the result of the initiative or others that are being introduced. To discourage him from intervening again in two minutes, let me say that I will be more than happy to look at this and discuss it with him in the future.

The Ministry of Defence meets its obligations under the public sector equality duty to provide information on the workforce in relation to the protected characteristics identified by the Equality Act 2010, through the disclosure of information relating to the gender, ethnicity, nationality, religion and age of personnel. Our new UK armed forces quarterly service personnel statistics will, like the monthly publications they replace, provide detailed information and analysis on the number of service personnel by strength, intake and outflow, and detail is provided for both the full-time armed forces and the reserves. The number of people who take up the new arrangements will be significant to us, because obviously they are the people we want to retain, but it will be modest at first— somewhere between 0.5% and 1% of the armed forces. We therefore judge that collating and reporting information on a cohort of such a size would not provide significant or beneficial data, particularly in the early stages.

[Mr Jones]

rose—

[Mr Ellwood]

Before the hon. Gentleman intervenes again, let me say that as the system grows and develops, I will certainly consider whether introducing such a thing would be worthwhile.

The principal long-term aim of the Bill is that we attract, recruit and retain people from a more diverse cross-section of society with the knowledge, skills and experience that we need to deliver operational capability. Let me be clear that we will not see results overnight. We are proposing good, positive steps in the right direction, but this is one of several proactive initiatives that we are introducing as part of an ongoing journey of change. We need to modernise our armed forces if we are to attract and retain the right mix of people and skills, which is why we are introducing these measures alongside others, collectively managed under the armed forces people programme. That programme includes the future accommodation model, which has been touched on, and the enterprise approach.

The MOD has been transparent about the challenging recruitment and retention climate in which we are operating. British society is changing and, if we are to compete in the jobs market, so must defence. Shortages in our traditional recruiting grounds and record youth employment mean that we must modernise and make our offer more attractive to those who are already serving and those we want to recruit. These measures will benefit a small but significant cohort, such as women and men starting a family, those with caring commitments and those who wish to undertake long-term studies. We have a good body of evidence on the demand for such ways of working that has been derived from external reports, internal surveys and focus groups. Our ongoing flexible duties trial shows that providing our people with modern choices will help us to retain highly skilled personnel who might otherwise leave.

I should reassure hon. Members that intake and strength by rank, trade and specialisation are regularly monitored and managed at service level and centrally by the MOD. Commissioning an external body to evaluate the early impact of the flexible working measures would serve only to delay their introduction in 2019.

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[Mr Ellwood]

If the hon. Gentleman had been here at the start of the debate, he would have heard me say that a pay rise is being considered by the Armed Forces Pay Review Body. The 1% pay freeze has been lifted, which is good news, and we look forward to the recommendations that will be made in March.

The MOD already gathers evidence on the impact that new forms of flexible working will have on our people. We think that that will provide more value than any evaluation from an independent contractor. We do not need to introduce more evaluation, further levels of statistics or additional reporting. It remains our view that imposing new statutory obligations would be unnecessarily costly, delay the introduction of the new measures and benefits for our people, and add little value to what we are trying to achieve. As I have said, we recognise the importance of keeping the effects of these changes under continuous review, in terms of the benefits to personnel and the impact on recruitment and retention.

[Mr Kevan Jones]

rose—

[Mr Ellwood]

I give way to the hon. Gentleman for a fourth time.

[Mr Jones]

If after one year the Minister gets a parliamentary question or an FOI request on this, how will he respond?

[Mr Ellwood]

If the hon. Gentleman asks the parliamentary question or makes the FOI request, I will respond.

I said earlier that the introduction of the new flexible working opportunities falls firmly within the scope of the armed forces covenant, which I think the whole House can be proud of. I assure the House that we will monitor the introduction of the new measures during the first year of implementation from 2019, and report on the impact in future armed forces covenant reports. Given the reassurances that I have offered, I hope that the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) will withdraw new clause 1.

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[Mr Kevan Jones (North Durham) (Lab)]

I welcome the Bill. I was trying to work out how many armed forces Bills I had dealt with over the past 16 years, either as a Minister or as a Back Bencher. [Interruption.] As the Minister says, I am a veteran.

This, I think, is one of the simplest Bills I have encountered, but, as the Minister has said, it is important. It is intended to ensure that working practices in our armed forces are modern, but also attractive to those who are thinking of joining. The Minister may think me pedantic in wanting to know how its implementation will be monitored. However, I think we need to ensure not only that the armed forces are offered these opportunities, but that the information is cascaded down the chain of command, so that people are aware that they can ask for flexible working arrangements, and those who are in a position to make the decisions recognise that they can use them.

Training will be needed, and, in some cases, attitudes must change. I have no problem with the senior levels of the armed forces, who have, I think, bought into this, but the Bill must have an effect in practice, throughout the chain of command. That is why I think it important for us to monitor the number of people who take up these opportunities, and also when and why they are refused. Is there a good reason for that? I know that civil servants have convinced the Minister that such monitoring would be an onerous task, but I do not accept that for one minute. As the system beds in, the information will obviously need to be produced internally in the Department, for monitoring purposes, and I find it difficult to understand why it cannot subsequently be published. I think that in future, as a result of freedom of information requests or parliamentary questions, the Minister, or his successor, will have to publish it anyway. I also think that it would be positive to project the fact that the forces are introducing flexible working by giving examples.

[Mr Ellwood]

I am grateful to the hon. Gentleman for giving way. This is the first of five interventions that I intend to make.

The hon. Gentleman has raised an important point about the need to trickle information down to commander level to ensure that people are aware of the opportunities. That will be incentivised and supported by local commanders, but there will be a higher approvals authority. It is all based on operational capability, which we must not lose sight of. I hope that that clarifies the way in which the system will work.

[Mr Jones]

I accept that. I do not question for one minute what the armed forces will do in trying to ensure that the information is instilled in the chain of command, but this is a new way of working for them. I am not criticising them, because it is inevitable that when such a change is introduced in any company or other organisation, some people will not get it, and some will positively resist it. Some people will see it as a radical change. I think we should ensure that those who ask for flexible working are given good reasons why, in some cases, it cannot be implemented. I accept that there will be operational reasons.

[Sir Hugo Swire (East Devon) (Con)]

Does the hon. Gentleman agree that when we are considering introducing a new element of flexibility into service in the armed forces, we should look again at the maximum enlistment time? Although the military have moved towards extending the retirement age in view of our ageing population, perhaps it is time to revisit that as well. People who are well into their 60s, and even 70s, are quite capable of doing some of the modern jobs in the armed forces, which would not have been the case 20 or 30 years ago.

[Mr Jones]

I think it is a fact of life that the pool of 18-year-olds is becoming smaller. I hope the right hon. Gentleman was not suggesting that the hon. Member for Beckenham (Bob Stewart) should be brought out of retirement; I do not know whether that would be a good thing or a bad thing for the armed forces, but it would certainly be interesting for them. However, he has raised an interesting point. When I was a Defence Minister, people who could have made a further contribution were leaving the forces in their early to mid-50s, for reasons connected with, for instance, pensions. Given that that pool of 18-year-olds is getting smaller, we should also revisit the idea of recruitment from Commonwealth countries, which has been successful in the past. It has made a tremendous contribution to our nation’s defence over the last few years.

[Ruth Smeeth]

My hon. Friend has referred to serving personnel of a slightly more mature aspect. Might not the most effective way to ensure that flexible working proceeds as the Bill proposes be to ensure that at least one one-star officer takes the opportunity to sign up for it?

[Mr Jones]

That is an interesting concept, which returns me to an important point made by the right hon. Member for Sevenoaks (Sir Michael Fallon). We need new role models, and not just in the context of flexible working. We need, for instance, to see a senior general who is a woman. We can do all the talking we like about trying to encourage women to join the armed forces and take an active part in advancing their careers, but unless there is a career path that will help them to progress, many will assume that that will never be achievable. We need only look at our US counterparts and others, where female officers have attained the highest rank. I agree with my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth): why can these provisions not be open to senior managers and others in the military and other armed forces? That would send a positive message that it is important.

I welcome the Bill, but disagree with the Minister in that I do not think it is a silver bullet, because people join our armed forces and are retained for reasons not only to do with work-life balance, but because of pay and other things such as career breaks, which other armed forces in the world offer, enabling people to leave the armed forces and then come back. That does two things: it gives the expertise that those individuals have learned in the armed forces to business, charity and other sectors, and brings a wealth of knowledge back into the armed forces, which is needed. Career breaks are not unusual in the United States and other countries. This Bill is a start in terms of flexible working, but I hope that that will develop through career breaks and other initiatives.

[Carol Monaghan]

Some countries make far better use of reservists for that same reason. They bring their armed forces skills into civilian life and vice versa. Some countries’ armed forces have huge numbers of reservists making up their ranks, as opposed to UK armed forces which have only a very small number.

[Mr Jones]

The hon. Lady makes a good point; reservists do add something, but I am talking about regular members of the armed forces being able to leave for a certain period of time on the understanding that they will come back. In the United States, many on senior military courses leave to do doctorates or work in business and do other things and then come back into the armed forces, and doing that is not seen as a black mark against their career; on the contrary, it is seen as enhancing both the armed forces and those individuals’ careers.

This Bill is a start, therefore, and I assure the Minister I will be scrutinising how it works in practice and the uptake of its provisions. I also join him in thanking the Clerks and everyone involved in the Bill on making sure it has gone through both Houses with a degree of consensus from all sides and with additions to the offer that we can now give to people who want to join our armed forces.

[Several hon. Members rose—]