Armed Forces (Flexible Working) Bill [Lords]

Mark Francois Excerpts

2nd reading: House of Commons
Monday 30th October 2017 Commons Chamber

[Nia Griffith]

My hon. Friend makes a good point, and I hope Ministers are listening to that major concern.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

I thank the hon. Lady for kindly mentioning my report. One point it raises is that, although recruitment is definitely under pressure, there is quite an optimistic picture for the reserves, and the picture has been getting better, not worse.

[Nia Griffith]

I thank the right hon. Gentleman for his intervention, but his report also mentions the concern, which Opposition Members share, about the MOD’s recruitment contract with Capita.

The Public Accounts Committee recommended back in 2014 that the MOD

“should ensure that it is able to hold Capita to account for its performance in delivering the Army recruitment contract”.

I would be grateful if the Minister set out how exactly Capita is being held to account for its persistent and inexcusable failure to meet the targets.

Earlier this month we read reports that said that the serving reservists who staff recruitment offices will be replaced by civilian staff from Capita, further weakening the link between those who serve in our forces and the recruitment process. It is clear that intake rates cannot be allowed to continue falling year on year, and I would be grateful if the Minister also set out what specific action he will take to address that.

One important way of beginning to deal with the crisis in recruitment and retention would be to lift the public sector pay cap and give our armed forces the pay award that they deserve. Our personnel serve with courage and distinction and, particularly at this time of year in the run-up to Remembrance Sunday, we remember the sacrifices that they make on our behalf. Yet their pay was frozen for the first two years of the 2010 to 2015 Parliament, and it has risen by just 1% a year from 2013. When inflation is factored in, the starting salary of an Army private has been cut by more than £1,000 in real terms since 2010, yet accommodation costs have continued to rise and personnel and their families have lost out due to cuts in social security payments.

The Armed Forces Pay Review Body observed that the “perfect storm” has resulted in few personnel feeling that they get anything resembling a pay rise each year. Indeed, the latest armed forces continuous attitude survey found that satisfaction with basic rates of pay and pension benefits is at the lowest level ever recorded, with only a third of personnel satisfied with their basic pay.

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[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

It is an honour to follow the hon. Member for Chichester (Gillian Keegan). In the role that I am privileged to hold as chair of the all-party group on the armed forces covenant, I welcome the Bill’s key measures. However, as far as I am concerned, this is the just beginning of the process, not the end. There are four issues that we need to explore further, most of which have already been touched on by Members on both Front Benches. I am talking about recruitment, retention, family life and the development of female personnel.

A challenge lies ahead: we have a 5% deficit in our armed forces personnel and this Bill, while I welcome it wholeheartedly, will require us to appoint and recruit even more people to ensure that flexible working is more than just a phrase and that it is a reality. We will simply need to recruit more people to make this policy work, which, given where we are, will provide additional challenges.

On recruitment, a third of our armed forces cite flexible working as a reason why they will stay in the forces. Of great concern is the fact that, within the Royal Navy, 46% of service personnel cite the lack of flexible working as a reason why they would consider leaving. Those are not our figures, but their figures, which gives us cause for huge concern.

Then there is the issue of family life. None of us, especially those who serve in this House, operates without the support of others to enable us to do our job. That should be no less the case for those who are serving every day to keep us safe. We need to look not just at flexible working but at other issues, including the delivery of the covenant and making sure that it is tangible for our armed forces personnel. In the last Parliament, the hon. Member for Berwick-upon-Tweed (Mrs Trevelyan), who was then chair of the all-party group, introduced the Children of Armed Services Personnel (Schools Admission) Bill, which focused on how children could get school places when families were redeployed very quickly. It is issues such as that which cause retention problems and which are the bread and butter to our families and our service personnel. Unless we make some significant changes—and even some minor ones—to how the system operates, we will continue to lose our armed forces personnel.

We also have the unfortunate reality of the service family accommodation model. I am talking about the reality of trying to get accommodation to work for personnel and their families; of trying to ensure that they can get the right property in the right place at the right time and in the right school district; and of trying to ensure that properties have boilers that work, hot water and all those other things that people require. We would not put up with not having those things, so why should those people who are keeping us safe and their families do so? The reality is that the contract with CarillionAmey needs to be greatly improved, otherwise the actions that we are calling for today become irrelevant and we will continue to have a recruitment and retention challenge in our military.

[Mr Francois]

On the point about CarillionAmey, does the hon. Lady agree that, when we speak to serving personnel, it becomes clear that they are not exactly enamoured of that company? The Ministry of Defence needs to compel its contractor materially to raise its game. If the contractor does not do so, it should lose the contract.

[Ruth Smeeth]

I could not agree more with the right hon. Gentleman. In fact, one thing that has proved to be both a huge honour and a heart-breaking experience is that, as chair of the all-party group, service personnel families contact me on a regular basis to detail their experiences. What goes on is simply not good enough. I have had representations from some of the service personnel charities, even as late as last week, and they are now worried about what happens next. Just as CarillionAmey seems to have woken up to the fact that it has some responsibilities, the charities are now concerned that, if things are put on a regional basis, we will have to start all over again explaining the needs and requirements of our personnel. Therefore, as bad as it is now, we are concerned about what happens next. We in this House have a responsibility to ensure that the MOD understands the concerns and the fact that it is simply not acceptable for a family to have to wait eight days for their boiler to be fixed.

The concerns that we are talking about relate not just to those experiences, but to how much people earn. Members will appreciate, from the trial of flexible working, that there were concerns about how tour bonuses were to be paid and how reduced hours would have a knock-on effect on salaries. These issues are compounded in the current climate by the mini defence review. It has been raised directly with me that serving personnel are concerned about losing their tour bonuses and what will happen to them next. Owing to a lack of communication, they are being told by senior officers that they might lose some of their core terms and conditions. That would mean that flexible working will become just words and will not help to fix the problem.

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[Mr Mark Francois (Rayleigh and Wickford) (Con)]

It is a pleasure to follow the hon. Member for Stoke-on-Trent North (Ruth Smeeth), who serves with me on the Select Committee on Defence. I thought she gave a rather good speech.

This is a brief but nevertheless important piece of legislation that has implications for recruitment and retention in Britain’s armed forces. Across this House, we all greatly value what our armed forces do for us. Therefore, I have to say that it is a shame that there is not one single Liberal Democrat Member present in the Chamber to talk about what our armed forces do for us. My contribution will focus on the recruitment challenges faced by our armed forces and how the Bill can help to address them, and I will make some observations on its potential for aiding retention.

Our armed forces are the best of British, but they are currently under pressure. As of May 2017, the total strength of the regular armed forces was 138,350—some 5% below their establishment strength—although shortages are far worse in specialised pinch-point trades. In the year to April 2017, 12,950 people joined the UK regular armed forces, but in the same period 14,970 left—more than 2,000 more. Partly as a result of these trends, I was commissioned by the Prime Minister last year to conduct a study into the state of recruiting into the British armed forces, both regular and reserve.

I submitted my report, entitled “Filling the Ranks”, to both Downing Street and the Ministry of Defence in July, and a copy of the report was subsequently published on my parliamentary website in September 2017. I would like to take this opportunity to place on record my thanks and appreciation for all their assistance in compiling the report to: Colonel Simon Goldstein, an Army reserve officer who acted as my staff officer on the report; my parliamentary assistant and researcher, Miss Sophie Bond-Jones; my personal assistant, Mrs Adele Jacquin; and, lastly, Wing Commander Paul Maguire, who acted as my liaison officer with the MOD. I made 20 recommendations and I am pleased to say that I have recently heard that the MOD has accepted all of them, for which I thank the Secretary of State.

As the report argues, a combination of lower than expected retention and failure to achieve recruiting targets means that the under-manning in the armed forces is worsening and has been for some time. The Royal Navy and the Royal Air Force are now running at around 10% below their annual recruiting target, while the shortfall for the Army is more than 30%. This continuing process of hollowing out in the ranks costs the armed forces valuable experience and threatens to compound the problem by increasing the pressure on those personnel who remain. In order to address these problems, the MOD needs to increase its recruiting performance, particularly among black, Asian and minority ethnic personnel and female personnel. I was pleased to hear the Secretary of State mention that in his speech.

The strategic defence review 2015 established the people programme to seek new ways of modernising the MOD employment offer to potential new recruits. I confess that I do have strong reservations about one element of the people programme—namely, the future accommodation model, which deals with the provision of service housing. Suffice it to say, I humbly advise Ministers to think again carefully about proceeding with FAM, at least in its current form. However, one area I very much agree with is the future engagement strategy, which the Bill seeks to give effect to. By offering recruits the opportunity to vary their service over the lifetime of their career, especially if their family circumstances change, the FES offers a more welcoming prospect for people thinking of joining the armed forces.

The Bill should help to create a more fluid market for personnel seeking to transfer between regular and reserve service and vice versa. Regular personnel transferring to reserve service can often bring with them tremendous experience to help to bolster the strength of reserve units. Conversely, reserves transferring to the regulars often bring with them remarkable enthusiasm to make a meaningful contribution to their new units. For those reasons, the Bill will be an important addition and advantage for the MOD’s future recruitment efforts.

The Bill and the flexible engagement strategy could also assist the MOD and the armed forces in the increasingly challenging field of retention. Although more personnel continue to leave each year than to join, the recruiting organisations across all three services are increasingly running to stand still as they to try to fill the gaps in the ranks, as the shadow Secretary of State pointed out. The most serious problems remain in the Army, but this is also likely to prove an increasing challenge for the Royal Navy and Royal Air Force, as both their establishments are due to increase by several hundred over the next few years in order to accommodate new equipment such as the two new aircraft carriers and the new P-8 Poseidon maritime patrol aircraft.

We know from the armed forces continuous attitude survey that pressure on family life is one of the chief reasons for personnel leaving the services. Other factors include the effect on spousal careers; to a certain extent, pay; and the quality, or otherwise, of service accommodation. However, the challenge of long hours and/or separation from families is a particular reason why service personnel—especially more experienced personnel—eventually decide to jack it in.

In that respect, the Bill can be of real assistance by allowing personnel to vary their commitment for a time to suit their family circumstances—perhaps following the birth of a child or to allow people to help provide care for an elderly relative. It should be particularly beneficial to female personnel who wish to take a temporary career break to raise young children.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

My constituent Flight Lieutenant Ron Smyth, who was a veteran of the Battle of Britain, died last week at the age of 96. People like him ensured that we have the freedom that is so important to our society. Does my right hon. Friend agree that the Bill is very important in recognising such sacrifices and encouraging more people to enter the armed forces?

[Mr Francois]

I certainly agree with my hon. Friend that we should never take living in a free country for granted. That is why we need armed forces of the highest calibre, and I pay tribute to his late constituent. Anything that can improve the quality of our armed forces is to be welcomed, and as I shall argue, the Bill can help to do that.

Without moralising, let me say also that the Bill might, to some extent, help to address the unfortunately relatively high divorce rate among service personnel, although that could also be addressed by a massive increase in performance by the MOD housing and maintenance contractor CarillionAmey, to which reference has been made this evening. If I were to summarise its performance, I would say that I would not trust that company to organise a social function in a beer production facility.

From what I gathered as a Minister in the Department, the decision to stay or leave—to stick or twist, as someone once described it—is often taken in the round, based on a variety of factors. As an example, hon. Members should picture the scene around the kitchen table one evening, when the kids have been put to bed, and a female corporal and her husband are discussing whether she should leave the Army. The factors they take into account include the progress of her career and the likelihood of further promotion, the effect on her husband’s career, the implication for the schooling of their children, the ability to care for an elderly relative who is increasingly unwell and the fact that the family has not been able to take a holiday for the last three years because of the couple’s future work commitments, including the wife’s extended deployment overseas. They are, in short, a family under pressure. What the Bill does, on a practical level, is offer an extra option in that scenario to help relieve the pressure on the family. That could be both family and retention-friendly, and thus help to keep an experienced and expensively trained non-commissioned officer in the service of the Crown.

Our armed forces, to whom I willingly pay tribute this evening, face very real pressures in recruitment and retention. Both those important issues must be addressed if we are to prevent further hollowing out in the ranks, which, if left unchecked, will increasingly impact our operational capability. We can buy all the expensive kit in the world, but if we do not have the people to operate it, we are at a disadvantage.

The Bill and the flexible engagement strategy, which it enables, seek to help alleviate pressure in both those vital areas. The measures are designed by the services for the services. Over time, the Bill, by allowing flexible working, and by allowing commanders to take into account the personal pressures on their personnel, could make a real difference to recruitment and, particularly, to retention in our armed forces.

In summary, these measures help to mirror best practice in the public and private sectors and to create terms and conditions of service that are fit for the 21st century. On that basis, I am happy to offer my support for this important piece of positive legislation, and I wish it Godspeed.