Armed Forces Pensions

Mark Francois Excerpts

Tuesday 16th October 2012 Commons Chamber

[The Minister of State, Ministry of Defence (Mr Mark Francois)]

I congratulate my hon. Friend the Member for Salisbury (John Glen) on securing this important debate. I acknowledge his genuine concern for the individual cases he has mentioned—several members of his own constituency and one other represented by my hon. Friend the Member for South Norfolk (Mr Bacon). I am aware of the particular circumstances of the individual case on which my hon. Friend the Member for Salisbury has focused, and I would like to explain the error in pensions policy interpretation that has led to this situation and what has been done to support individuals who might have encountered financial and other difficulties as a result.

For the benefit of the House, I will set out a little of the background, but may I start by saying that when a service person divorces or dissolves a civil partnership, we acknowledge that it can be a difficult and stressful time for both parties? I fully recognise, especially in the current climate, that to have received the news that the amount of pension that was already in payment would reduce, or in the case of deferred pensions would be less than expected, would have been a great cause for concern. If any additional upset or distress has been caused as a result of errors made by the Department, I offer my own very sincere apology to those affected.

By way of introduction to this subject, pension credit members are former spouses or civil partners of members of our armed forces pension schemes who have been awarded a pension sharing order on divorce or on the dissolution of a civil partnership. They are a special category member of the pension scheme to which their former spouse or partner belongs. So while they are members in their own right, the terms of their membership do not directly mirror the pension entitlement of their former spouse or partner.

As I think my hon. Friend the Member for Salisbury well understands, the legislation in this area is complex. Occupational pensions would normally become payable from age 65. New legislation was introduced in 2009 that allowed pensions to be brought into payment from the age of 55. The Ministry of Defence’s pensions policy staff wrongly interpreted this legislation as allowing payment from the age of 55 without any reduction for early payment. However, my Department’s reading of the law was mistaken.

The legislation was intended to make early payment an option, but if the pension was to be paid early, a corresponding reduction was also required. The error was first identified in the latter part of 2010 during an exercise to review the regulations for the armed forces pension scheme. As soon as it was identified, work began to amend the regulations of all of the pension schemes affected. My Department’s pensions policy staff instructed the Service Personnel and Veterans Agency to apply the correct policy to new cases from March 2011.

[Jim Shannon (Strangford) (DUP)]

I am grateful to the hon. Member for Salisbury (John Glen) for bringing this matter to our attention. He said in his introduction that life circumstances have been substantially affected, so I ask the Minister whether, in the review, he would be prepared to look at those who have been awarded compensation, as it has affected their benefits? Will he consider them as well as the wives and family members as part of the review that the Minister hopes to undertake?

[Mr Francois]

I hope that, by the time I get to the end of my speech, the hon. Gentleman will agree that we are doing our best to look at this issue and try to put it right. He will be able to make that judgment afterwards, but I hope that what I say will address the spirit of what he has asked.

The effect of misinterpreting the legislation was that 127 pensions already in payment to pension credit members required an adjustment to be made—in the majority of cases, this would result in a reduction. In March 2012, the Department notified all those members affected and advised that the changes would come into effect from June this year. The average annual reduction to pensions in payment was approximately £783, although in some cases this will have been significantly higher.

During business questions in April 2012, my hon. Friend the Member for Salisbury asked the Leader of the House to seek an apology from the Ministry of Defence and to take corrective action that would, in effect, restore the pensions to the original amount. The Leader of the House asked for urgent inquiries to be made to establish whether any injustice had occurred. My predecessor, the Minister for the Armed Forces, my right hon. Friend the Member for South Leicestershire (Mr Robathan) wrote to my hon. Friend on 10 May, confirming that while an error had occurred in allowing the pensions to be paid on the wrong basis, legally there was no provision to continue paying the pensions knowingly at the incorrect rate.

My predecessor also confirmed that when the pensions were being adjusted to the correct rate, a calculation error was made by the Department. That further mistake was identified quickly, and revised calculations were issued to those affected as soon as was practicable. When the correct methodology was applied, the reductions in pension amounts in all those cases proved to be less than had previously been indicated. In a few cases pensions actually increased, as did the lump sums received by some pension credit members as part of divorce settlements.

As I am sure the House will agree, when there is no legal entitlement for a pension to continue to be paid at an incorrect rate, the payment must be put right without undue delay. Regrettably, in this instance the matter was not addressed as quickly as it ought to have been, and the payments were allowed to continue. Again, I apologise for that.

In the spring of 2012, when the extent of both errors had been recognised, the Ministry of Defence did its best to put things right. As a first step, approval having been sought from Her Majesty’s Treasury, overpayments to 127 pension credit members totalling more than £176,000 were waived, and no recovery action was pursued. In addition, in recognition of the need for those affected to adjust to a reduced income in future, a period of three months’ grace was given to those whose pensions were already being paid.

For the sake of completeness, the House should know that the same errors also affected 417 deferred pension credit members. Deferred members are those whose pensions have not yet been paid. Those members were also written to in March 2012, and were told that the amount of pension they were expecting to receive at the age of 55 was incorrect. They could still choose to take their pensions early at 55 or they could wait until they were 65, but the amount would need to be recalculated. Once deferred members' pensions had also been calculated on the correct basis, the vast majority of deferred members saw their annual pensions actually increase above the original estimated value.

All those affected were offered an opportunity to discuss their situation with the Service Personnel and Veterans Agency’s welfare service. In March 2012, when the original pension recalculations were completed and the reductions in pension were known, the agency identified those with the most significant reductions and those who might be particularly vulnerable, and arranged for a welfare manager to visit them personally. The visits were completed, whenever possible, throughout March, and ensured that that group of individuals could be in direct contact with a welfare manager should they require further or ongoing support. In each case involving welfare contact, a full case assessment was carried out. It examined individual circumstances, and included potential entitlement to other benefits. Further support and advice have been given to a number of pension credit members, and, when appropriate, they have been helped to apply for further DWP benefits such as disability living allowance and carer’s allowance.

The potential financial difficulties that the adjustment might have caused some individuals was also recognised. Claims for hardship that could be substantiated could be discussed in confidence with the welfare service and submitted for consideration. Five claims for financial hardship, six claims for a consolatory payment and two claims for other financial losses have been received and considered, and compensation has been paid when appropriate. That route remains open to pension credit members, including my hon. Friend’s constituents, who may be facing genuine financial hardship as a result of the changes in their annual pensions. I appreciate that making any such claim is a difficult step to take, but I assure my hon. Friend that it would be handled in a sensitive manner and in conjunction with members of our welfare service. They are there to offer support, and I urge all affected individuals to make contact to see what can be done.

I was pleased that my hon. Friend recognised the efforts that my Department has made in supplying information to his constituent. I assure the House that it has learnt some valuable lessons from its mistakes in this case. Improved processes have been introduced to enhance the training of, and more effective working between, pensions policy and operational delivery staffs. That has included a strong focus on ensuring that the potential implications of future legislative changes are correctly interpreted and fully understood.

I have listened to all that my hon. Friend has said today. While it is perfectly true that an error was made in the interpretation of legislation in this complex area, and that that was further exacerbated by errors in our calculations—for which I have already apologised—I urge the House to recognise that my Department has acted to minimise the effects that the error has caused. We have not sought to recover the overpayments, we have given three months’ grace enabling members to adjust to the reduced amount of pension, we have offered welfare support when it has been required or considered appropriate, and we have made arrangements for claims to be considered when financial hardship has been demonstrated. My hon. Friend has made considerable efforts to support this group of individuals through all possible parliamentary channels. That is evidence of his commitment to champion their cause to seek to ensure that no injustice has taken place.

My hon. Friend has suggested that some form of compensation is due to those affected by these errors. I agree. Although there is no statutory entitlement to maintain these pensions at the full amount, I can assure the House that the MOD has in place a comprehensive process to compensate these individuals where financial hardship has resulted because of the changes to their pension. The process will consider individual cases and assess the impact the errors have had. If individuals are not satisfied with the outcome, it is of course open to them to pursue the matter of any compensation through the legal system.

In conclusion, I urge those individuals who have been affected to engage or re-engage with our welfare system so that we can consider each individual case in the round and do our best to put things right. We must make amends and we will seek to do so.

Question put and agreed to.

HMS Caroline

Mark Francois Excerpts

Monday 15th October 2012 Written Statements

[The Minister of State, Ministry of Defence (Mr Mark Francois)]

I am pleased to inform the House that I am today laying a departmental minute, which proposes the transfer of HMS Caroline and its fixtures and fittings to the National Museum of the Royal Navy (NMRN).

HMS Caroline is considered to be the second most important ship in the UK National Maritime collection after HMS Victory; she is the only surviving veteran afloat of the Battle of Jutland (1916). The ship is a significant example of early 20th century engineering and shipbuilding, constructed of riveted steel plate with three-inch belt armour reducing to one inch at the keel. Laid down on 28 January 1914 at Camel Lairds yard in Birkenhead, she was commissioned into active service on 17 December of that year making her the fastest built major warship to date. She was propelled by two Parson’s steam turbine engines which remain onboard as the world’s only “in situ” example of the engines which revolutionized maritime propulsion. HMS Caroline has been moored in Belfast since January 1924, just over two years after the state of Northern Ireland was established and she has built a considerable social history as a witness to the province’s story. As a depot ship and Royal Naval reserve training ship she has benefited from continual occupation and some 85% of the vessel is in its original form.

The ship, currently berthed in Belfast, is in an increasingly fragile state and was decommissioned on 31 March 2011.

The contents of the ship known as the “Caroline Collection” were the subject of a separate gift (valued at less than £250,000) made in July 2011. The National Museum has already assumed responsibility for ongoing running costs of the ship. Following the gift, the NMRN intend to apply for Heritage Lottery funding in order to restore the ship as a heritage attraction in Belfast.

The proposed transfer would enable the NMRN to access external funding sources in order to restore and preserve this historically significant ship as a heritage attraction in its current location in Belfast following an agreement between the Department of Enterprise, Trade and Investment in Northern Ireland and the National Museum of the Royal Navy.

The detailed arrangements proposed envisage that the NMRN would assume responsibility for the restoration and preservation of the ship. I expect the new arrangements to be in place by 1 April 2013.

Unsolicited Mail Campaign

Mark Francois Excerpts

Friday 14th September 2012 Written Statements

[The Minister of State, Ministry of Defence (Mr Mark Francois)]

I wish to inform the House about the annual unsolicited mail campaign the Ministry of Defence (MOD) will be running in the lead up to Christmas (which is 100 days from this Sunday).

This Government are dedicated to the care and welfare of the men and women of our armed forces, particularly those deployed on operations, which is reflected in the comprehensive deployed welfare package. A key part of that package is ensuring the timely delivery of free personal mail from family and friends. While unsolicited mail is well-intentioned, mail sent by families and friends is the most important to deployed personnel and is our absolute priority. Moreover, unsolicited mail sometimes strains the logistic supply chain and can prevent other mail from families from getting through. The British Forces’ Post Office (BFPO) estimates it will handle approximately 22,500 parcels per week during the eight-week period between mid-October and mid-December, more than twice the normal demand. This can impact on personal mail, causing severe delays. Also delivering packages over the “final mile” to forward bases puts increased pressure on essential in-theatre resources.

It is for these reasons that the MOD will be repeating its unsolicited mail campaign. Its success last year reduced the volume of unsolicited mail by half compared to previous years. Key to the success of this campaign is encouraging the British public to show their support through one of the recognised MOD service charities. All service personnel on operations over Christmas will receive a seasonal gift box from the charity, “uk4u Thanks!”. This charity works closely with the MOD, using free space in the existing supply chain to deliver the boxes well before Christmas, without impacting on the normal mail system.

I recognise that it might seem counter-intuitive to ask the British public not to send parcels to troops at Christmas, but to avoid the impact of unsolicited mail and to help prioritise mail to service personnel from their families I ask for your full support in directing the public towards MOD recognised charities.

Wayne Moore

Mark Francois Excerpts

Tuesday 11th September 2012 Commons Chamber

[The Minister of State, Ministry of Defence (Mr Mark Francois)]

If the House will allow me a brief indulgence, after two and a half years in the Whips Office and the vow of Omerta that goes with it, it is a pleasure to be able to speak in the House of Commons again. Now that I have that ability, may I congratulate the hon. Member for Kingston upon Hull North (Diana Johnson) on securing this debate on the case of her constituent, Mr Wayne Moore, who was allegedly assaulted on 25 May 2008 in Germany? I note that the hon. Member for Cheltenham (Martin Horwood) is also in the Chamber and I am well aware of his long interest in this case as Mr Moore’s constituency MP, before Mr Moore moved to Hull.

I was sorry to learn the details of this incident, as I am for Mr Moore, who has clearly suffered following the events of 25 May 2008. That was made plain by the Member of Parliament who now represents him. I hope that this debate will help answer any outstanding concerns Mr Moore may have. I am sure, though, that the House will also understand that I will be unable to cover some detail relating to the case publicly, not least for reasons of data protection and legal privilege. However, I can confirm that this incident was initially investigated by the Royal Military Police. It may help at this juncture if I explain that the RMP undertook the investigation under the agreement with the German authorities covering the basing of our forces in the country as part of the NATO alliance, which is known as the status of forces agreement. This is because the accused was a British serviceman and the incident took place on a British military base. The service police work very closely with their civilian colleagues, both in the UK and when our forces are deployed overseas.

The initial investigation commenced on 26 May 2008. It concluded in November that year, and the matter was passed to the chain of command of the accused for their consideration. In December, following legal advice, the commanding officer made a decision using his statutory authority under the Army Act 1955—the legislation that was in force at that time—not to prosecute any individual in relation to the incident. The case was therefore discontinued at that stage. Following representations from Mr Moore, a lieutenant colonel from the Royal Military Police conducted an internal review in July 2009, which the hon. Member for Kingston upon Hull North mentioned. He conducted a thorough review of the case and the relevant evidence, and identified a number of missed investigative opportunities. CCTV footage was reviewed and found to have no evidence of the incident in question, but was not recovered; some potential witnesses to the incident were not identified; and there were avoidable delays that, in one case, may have led to a witness declining to provide identification evidence. Nevertheless, he concluded that those shortfalls would not have materially altered the outcome, not least because other evidence, including witness evidence, contradicted Mr Moore’s version of the incident.

The Royal Military Police’s chief officer, the Provost Marshal (Army), wrote to Mr Moore to offer his personal apologies for these failures in the investigative process and to suggest a meeting with his staff to explain their findings in more detail. Mr Moore took them up on this offer and later that year the Royal Military Police met the hon. Lady’s constituent and explained their findings to him directly.

Following that review, Mr Moore continued to express reservations about the way in which the matter had been investigated and again asked that the matter be reopened. Accordingly, in March 2010, the Royal Military Police asked a retired civilian detective chief superintendent with many years’ experience in this area to undertake a further independent review of the case to provide additional external assurance of the investigation. This further review concurred with the Royal Military Police’s own assessment that although some investigative opportunities were missed in the case, as the hon. Lady said, they would not have altered the outcome of the investigation. It was, however, suggested by the detective chief superintendent, that obtaining further evidence from medical sources who treated Mr Moore in Germany at the time and subsequently in the UK might provide grounds to allow investigators to refer the case to the Service Prosecuting Authority under the new legislative framework of the Armed Forces Act 2006, which had recently come into force in October 2009.

As such, the chief officer of the Royal Military Police set about obtaining further medical evidence in support of Mr Moore’s case. Unfortunately, and despite the efforts of police investigators, it took until March 2011 for all the additional information to be provided. I should point out here that these medical sources were not military and there was considerable delay on the part of the civilian medical authorities in providing the necessary information. The issue of patient/doctor confidentiality and data protection, and the difficulty this poses to police forces wishing to pursue fully all lines of inquiry, is an issue that we recognise, and one that faces many police organisations, not only, in fairness, those in the military.

As a result of that further work, the case was referred to the Director of Service Prosecutions. Having received the file, prosecutors requested further clarification, which required a short period of further work. Once that was complete, they properly applied the “full code” test, which requires the prosecuting authority to judge whether there is a realistic prospect of conviction—is it more likely than not?—and, if so, whether prosecution is in the public, including the service, interest. In this case they considered that there was not a realistic prospect of conviction and, therefore, no charges were brought.

Because of the role it plays within the service justice system, the Service Prosecuting Authority is rightly independent of both the chain of command and the Ministry of Defence and falls under the superintendence of my right hon. and learned Friend the Attorney-General. That is analogous to the Crown Prosecution Service being independent of the civilian police. I hope that the hon. Lady will therefore understand that it would be inappropriate for me to comment further on its decision.

What I can say is that the Director of Service Prosecutions has reviewed the case personally and not only provided an assurance that the correct assessment processes were followed but endorsed the decision that there was no realistic prospect of conviction. Accordingly, the managing prosecutor wrote to Mr Moore to advise him formally of the outcome, explaining the reasons for the conclusion he reached and provided Mr Moore with the opportunity to request a meeting to discuss the reasons in more detail, which I understand he has not, to date, pursued. The Solicitor-General subsequently reviewed the case papers and did not dissent from the decision.

No one can deny that, following the independent case review in early 2010, this case was more protracted than anyone would have wished. In that sense, the hon. Lady has a perfectly fair point. We also recognise that there were failures properly to support and inform Mr Moore of the status of the initial investigation and subsequently through the review process. I hope that the hon. Lady is assured, as I was, by the willingness of the service police to consider her constituent’s concerns and review the case not once, but twice, including by an independent assessor. As I know she will appreciate, the vast majority of police investigations within the service justice system are managed quickly, efficiently and effectively. Nevertheless, in the small percentage of cases in which investigative mistakes have been made, it is vital that the police are open and honest enough to hold their hands up and apologise, and I believe that this case highlights their willingness to do so.

[Diana Johnson]

I think that the Minister is coming to the end of his contribution and wonder whether he might be willing to comment on the allegation that has now been made against Mr Moore four years on—that he perpetrated the attack—which was not raised before and has caused him a great deal of distress.

--- Later in debate ---

[Mr Francois]

I understand the hon. Lady’s point and think that I will have time to refer to it in my conclusion.

I would not want to leave the House with the impression that the delay that occurred in this case, for which the RMP has apologised, is the norm within the service justice system: it is not. Members will be aware that the three services each have their own police forces—the Royal Navy Police, the Royal Military Police and the Royal Air Force Police—which have statutory powers devolved through the Armed Forces Act. They are deployed wherever the armed forces are based and, because the armed forces reflect society, are expected to deliver the full spectrum of law enforcement capability and investigate all types of crime. They are therefore trained to standards set by the National Policing Improvement Agency and, where necessary, advanced technical training is provided by the civil police.

Last year more than 2,500 cases were investigated by the Royal Military Police alone and over 600 cases were prosecuted by the Service Prosecuting Authority at courts martial. The average time to trial in 2011 was 111 days, which compares favourably with, for example, magistrates courts, which have average completion rates of 144 days for all defendants, although I accept that it is difficult to make direct comparisons because of the unique nature of some service offences.

I would like to take this opportunity to pay tribute to the work of the service police. For the most part, they do an outstanding job in difficult and sometimes exceptionally dangerous circumstances. Of course they sometimes get criticised—every police force in the country has been criticised at one time or another—but it would be wrong to draw broad conclusions from individual cases. Some cases result in convictions, some in acquittals, and some, for various reasons, do not proceed to trial. That is the nature of any criminal justice system, whether service or civilian. The key thing is for organisations to acknowledge when mistakes are made and to learn from them. I can assure the hon. Lady that that is what has happened in this case. Lessons have been learned. Royal Military Police investigative policy and practice is continually developed and adapted in the light of experience and emerging civil police best practice. Furthermore, since Mr Moore raised his concerns, a code of practice has been introduced by the Ministry of Defence detailing the services to be provided by the armed forces to the victims of crime. This is designed to ensure that victims are properly supported and that at every stage of the investigation and prosecutorial process they are kept fully informed of progress in their case.

Ultimately, we accept that there could have been improvements in the way the case was initially investigated. I am conscious, however, that it has now been reviewed and considered by the Royal Military Police, by a senior retired civilian detective, by the Service Prosecuting Authority, and by the Solicitor-General, so it has been looked at in great detail four times already. I have also discussed the case personally with the Provost Marshal (Army) as well as consulting staff from the independent Service Prosecuting Authority. I have been assured that the case has now been exhaustively investigated and that the correct decision not to prosecute was reached. Part of the reason that decision has been made is that, as I said, the witness statements that have been made available clearly contradict the version of events that has been provided by Mr Moore.

I know that the hon. Lady’s constituent continues to suffer as a result of the events of May 2008. Nevertheless, his suffering is not in itself proof that a crime was committed, and after repeated, careful and independent consideration of the events in question the conclusion has always remained the same—that there is no realistic prospect of convicting any individual in relation to this matter. I hope that in saying that I have been able to answer fairly clearly the point that she put to me in her intervention, but if she feels that I have not, I will gladly give way again.

[Diana Johnson]

I am grateful to the Minister for allowing me to intervene again. If he is now saying, four years on, that the witness statements contradicted the original account of what had happened, why was an investigation not taken forward against Mr Moore? It seems very convenient that four years on the tables have been turned on him and that this was not raised much earlier if there was evidence.

[Mr Francois]

I understand the hon. Lady’s question. I do not think that there was evidence sufficient to prosecute Mr Moore for what happened in this case, just as I do not think there was evidence sufficient to prosecute the accused, as it were. Given that the case has been reviewed four times, and having looked into this, I am confident that the previous decisions were correct. However, I absolutely respect the hon. Lady’s doggedness in wanting to get to the bottom of what happened on behalf of the member of the public she represents. I hope that she will feel that I have tried to answer her question directly.

The Service Prosecuting Authority’s offer to meet Mr Moore further to explain its decision not to prosecute remains open. Under the circumstances, particularly as explained to the House by the hon. Lady and the hon. Member for Cheltenham, I strongly encourage Mr Moore—the hon. Lady might want to play some part in this—to take the Service Prosecuting Authority up on this offer in the hope that he could then put these questions to it directly and that that might enable it to answer those questions and perhaps to help him to come to terms with what has happened. I can only make that suggestion from this Dispatch Box, but I hope that the hon. Lady’s constituent will take it up because, given the long and complicated history of this case, it would be helpful if he sat down with and put these questions directly to the SPA so that it could reply directly to him. I can drop a hint in that regard, but I cannot force the hon. Lady’s constituent to take it.

In conclusion, I hope that I have done my best to address directly the points that have been put to me. I commend the hon. Lady and her friend on the Liberal Democrat Benches, who is also my hon. Friend the Member for Cheltenham, for the way in which they have approached this case. I hope that I have done my best to put their concerns to rest.

Question put and agreed to.