Armed Forces: Pay

Lord Rosser Excerpts

Wednesday 20th March 2013 Lords Chamber

[Lord Astor of Hever]

My Lords, service personnel will receive the increase from 1 May onwards. I understand that it is the general policy of all Governments not to backdate, to avoid adding complexity and risk to normal administrative operations. The noble and gallant Lord asked if the uplift in X-factor will be paid to mobilised reservists. X-factor is paid at the full level—currently 14%—to all ranks up to and including lieutenant-colonel or equivalent in the Regular Forces, full-time reserve service personnel on full commitment and mobilised reservists.

[Lord Rosser]

My Lords, the Government have made as nifty a U-turn as a London taxicab on implementing the X-factor supplement recommendation. Yet the contract for the chairman of the Armed Forces Pay Review Body, Alasdair Smith, is not being renewed. He said that, because of the late decision and the time needed to make another appointment, his successor will miss the first half of the year’s programme of work, including all the visits to members of the Armed Forces that are a hugely important part of the role. That statement indicates that this was a sudden decision by the Government, made following receipt of the pay review body’s recommendations at the end of January, since just over two weeks later Alasdair Smith was told that he would be finishing at the end of this month. In view of their hasty U-turn, will the Government now offer Professor Smith a further term as chairman? After all, he will have the confidence of members of the Armed Forces since he upheld the independence of the pay review body—or is that the problem?

[Lord Astor of Hever]

My Lords, there is no link between the Prime Minister’s decision not to reappoint Professor Smith and the increase in X-factor. The Prime Minister’s decision not to extend Professor Smith’s appointment represents broader government policy regarding no automatic right to reappointment to non-departmental public bodies such as the pay review body. The decision is in line with the Commissioner for Public Appointments’ Code of Practice for Ministerial Appointments to Public Bodies. An interim chair, John Steele, has been drawn from the remaining members of the AFPRB until a formal replacement can be appointed.