Armed Forces Restructuring

Heidi Alexander Excerpts

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

First, my hon. Friend continually asserts, and I continually rebut, the idea that we are trying to replace 20,000 regular soldiers with 30,000 reservists— that is not what we are doing. We are restructuring the regular force; the regular force will be smaller. We will use civilians in a different way from how we have used them in the past. We will use contractors more effectively, learning the lessons, particularly from the US experience of using contractors to support combat operations. We will also use reservists, but it is simply wrong for him to suggest that this is a straightforward swap of 20,000 regulars replaced by 30,000 reservists. That is not how it works.

My hon. Friend knows very well the answer to the second part of his question: there is not the budgetary capacity to maintain the Regular Army at 102,000 while building the reserve to 30,000 by 2018. That simply cannot be done without imposing new and unwanted cuts elsewhere.

[Heidi Alexander (Lewisham East) (Lab)]

I listened carefully to what the Secretary of State had to say about individuals being made redundant just before their immediate pension point. What he failed to say, of course, was that for some long-serving officers this loss can amount to tens of thousands of pounds in forgone pension payments. Does he really believe that that scale of loss is consistent with the spirit of the military covenant?

[Mr Hammond]

Let me just be clear about what we are talking about, as although the hon. Lady may understand this, perhaps not all hon. Members do. When people reach their immediate pension point they can leave the Army, notwithstanding the fact that they may be only in their 40s, and take an immediate pension. When somebody is close to, but has not reached, their immediate pension point when they leave the Army through a redundancy, they receive an enhanced lump sum redundancy package to reflect that fact and they still, of course, retain their pension rights when they reach their pensionable age of 60 or 65, depending on what pension scheme they are in. We have looked at the alternatives and concluded that all of them would deliver at least as much unfairness to other groups, and that this is the fairest and most appropriate way to proceed.