Armed Forces (Flexible Working) Bill [HL]

Lord Touhig Excerpts

2nd reading (Hansard): House of Lords
Tuesday 11th July 2017 Lords Chamber

[Lord Touhig (Lab)]

My Lords, this is, as the Minister says, a small Bill, but one that has the potential to make far-reaching improvements to the quality of life of our service men and women while also having consequences for the operational capability of our Armed Forces. On the face of it, it appears to be modern, innovative and in line with employment practices seen in much of business and industry today. It follows the commitment in SDSR 2015:

“We will ensure that a career in the Armed Forces can be balanced better with family life”.


One has only to read the 2017 Armed Forces continuous attitude survey, which lists the top five reasons why service personnel leave, to find that number one is the impact of service life on family and personal life. Some 62% of those surveyed listed this as the main reason, although I would add that 43% also blamed poor service morale.

At this stage, the jury is out as to whether the Bill is likely to change those statistics at all. In SDSR 2015, the Government said:

“We will make the changes necessary to enable our Armed Forces to work flexibly, reflecting the realities of modern life”.


The question that the Bill must answer is simple: will it do that? I, for one, have serious doubts and concerns that it will not.

In my innocence, when I read SDSR 2015, I envisaged flexible working practices similar to the flexible working that we see in much of the public and private sector, but the Bill is far removed from that. Flexitime working means that employers and employees have an arrangement to work in such a way that the full complement of hours is put in by the employee, but the hourly work pattern can be varied to suit the employee’s needs. This measure proposes no such arrangement, because those granted flexible working will have pay deductions and their pensions reduced. Indeed, the example given on pages 4 and 5 of the paper headed “Policy and Scope” states that,

“a Service person who chose to reduce their commitment from 100% to 60% of a full-time equivalent would see a 40% reduction in their salary … A regular who dials down”—

that is a lovely term—

“their commitment will see their pension pot for that period proportionally reduced”.

When I read that, I wondered if we are all in the same world—the real world. How many service men and women, who have endured 1% pay rises for some years, could take a pay cut of 40% to gain some flexible working?

We were told in yesterday’s very helpful briefing—I thank the noble Earl, as usual, for arranging these excellent briefings—that the Ministry of Defence did not expect a great many personnel to take up this new flexible working offer. In those circumstances, small wonder. What assessment has been made of the number expected to take up the offer? Can he give us figures for each year, say, for the coming five years? How much does the Ministry of Defence expect to save on its budget in that period? We were told yesterday that savings can be reinvested, so I assume some work has been done to estimate how much will be saved. Focus group surveys gauging reaction to the plan have been carried out, and another one was launched only yesterday, I believe. Will they be published before Committee?

In truth, I am left asking whether this is the seemingly benign and modern approach to flexible working as promised in SDSR 2015, or the thin end of the wedge and the first step towards zero-hours contracts for our Armed Forces. Is it all about saving money on an already overstretched defence budget? There is agreement across this House that more needs to be spent.

The policy and scope document confirms what most noble Lords know: personnel unable to meet unlimited military commitments for periods of time leave the services. The loss of their knowledge, skills and experience impacts on operational capability and increases defence costs. Has this been measured? How many skilled personnel left the services, say, last year? Further, what skills have we lost and what was the financial impact of losing them on the defence budget?

The same document tells us that the new policy will build on existing flexible working opportunities within the services and gives examples of late starts, early finishes, compressed hours and working from home. Can the Minister tell us more about this existing flexibility? How many personnel have availed themselves of it? Has it saved money or cost more?

In fairness, the Government deserve our support in saying that they want the services to be more representative of the people. How will that be achieved? We know there is a target to improve gender balance, but what about increasing ethnic mix and encouraging LGBT recruits? Another objective we would support is attracting and retaining people with skills that the forces may lack. Can the Minister say in which skills areas we are short of personnel at present?

We were told that future flexible working opportunities derive from the flexible engagement system project, which is part of the Armed Forces people’s programme. In Answer to a Written Question I submitted in February, the Minister said that the Government were committed to developing a new Armed Forces offer, adding:

“It will better reflect the realities of modern life and the UK’s current financial position”.


Can the Minister tell us something about this project and if it has contributed to the thinking behind the Bill?

Can the Minister also comment on the fact then when the MoD advertised for a head of the Armed Forces people’s programme, one key responsibility was,

“leading on resource planning, using innovative thinking to support project teams to deliver over £l billion of savings”.

I am sure that I am not alone in hoping this is not all about the Government cutting defence spending. I feel sure the noble Earl will want to reassure us on that again when he winds up.

Clause 1 amends Section 329 of the Armed Forces Act 2006 to enable flexible working and limited geographic employment for limited defined periods. Can the Minister explain what “limited geographic employment” means and what is meant by “limited defined periods”? Will this put a maximum limit on the number of days, weeks or months in any given period that flexible working will be allowed? The clause covers the regulations that will be needed.

Paragraph 5 of the policy and scope paper refers to the,

“existing Defence Council regulations … for terms and conditions of enlistment and service for persons enlisting, or those who have enlisted”,

and states:

“The regulations do not provide a comprehensive list of all the terms and conditions of service. Rather, they provide, for example, for the types of engagement a Regular may be enlisted to serve on, the duration of those engagement types, the ability to extend them”.


As the regulations do not provide a comprehensive list of terms and conditions, can the noble Earl assure the House that this ambiguity does not mean that the Bill will give the Ministry of Defence the power to extend the flexible time of a service man or woman against their will, or even impose flexible working when people are unwilling to take part? Can he categorically state that this flexible working will not be used to cut spending?

Paragraph 6 of the paper tells us that applications for flexible working will be considered by a “competent service authority”. Is that the headquarters level approvals board, mentioned in paragraph 7? Can he say more about the composition of this authority? Similarly, an appeal against a refusal will be considered by a “higher authority”. Is that the Defence Council? There is much more that we will want to explore in Committee.

There is one final point which I ask the Minister to comment on, or at least reflect on by Committee stage: refusal of an application. Paragraph 7(f) of the document states:

“An application is likely to be refused if personnel are at a high state of readiness to deploy to an operational theatre, or if the loss of their capability cannot be absorbed at unit level such as when serving on a ship, or in a high readiness role”.


That is perfectly reasonable and understandable, but how will the scheme affect forward planning, in particular, planning for a deployment at short notice? Service chiefs may consider that they need a particular combination of forces for an operation, only to discover because of flexible working that this is not immediately available. Again, yesterday we were told this measure would not interfere with operational continuity. I think the Minister has his work cut out on this matter, and I am sure that I am not alone in needing to be reassured and convinced.

Finally, the Bill will depend almost entirely on the use of regulations to achieve its objective. The Government propose that the SIs needed will be under the negative procedure. We are opposed to this and will seek to persuade the House in favour of the affirmative procedure.

The SDSR 2015 offered the prospect that this policy would be universally welcomed and supported. Instead, we have a measure that, while seemingly offering flexibility, will in effect penalise our Armed Forces by cutting pay and pensions, forcing service men and women to choose between taking time off to care for a sick wife, child or elderly parent, or cutting their living standards—and all this parading under the guise of offering flexible working in a modern setting.

The Prime Minister today called for other parties to contribute, not simply to criticise. Yesterday, in the other place, Labour’s shadow Defence Secretary, Nia Griffith, responded positively, offering to work with the Government on improving Armed Forces pay. I, too, respond positively and tell the Minister that we on this side will work with him, other parties in this House and, most especially, noble and gallant Lords on the Cross Benches, many of whom have first-hand experience of the services. We will work with them all to reshape this Bill into one that offers genuine flexibility without cutting the pay and pensions of brave service men and women.