Military Covenant

Nick Smith Excerpts

Wednesday 16th February 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

There have been some excellent and thoughtful contributions to the debate. I am pleased that the Royal Welsh Regiment has been given the freedom of the borough in Blaenau Gwent this weekend.

Last week, I asked the Leader of the House for a debate on the Government’s proposed changes to armed forces pensions. I have also tabled early-day motion 1367, which is now supported by 118 MPs from all parties. I welcome today’s opportunity to raise the issue of the military covenant.

For service personnel and veterans in my constituency, pensions are a key component of the military covenant. Unfortunately, they do not believe that a permanent move from the retail prices index to the consumer prices index in calculating pension increases is fair, and neither do I. This change will slash the lifetime income of disabled servicemen wounded on active service. They have been targets of the Taliban and others; they should not be targets in their retirement.

I am proud of Wales’s contribution to Britain’s defence; it has been long and distinguished. The Welsh Assembly has an admirable record in providing for our armed forces. That is why armed forces personnel now get special help through the Assembly’s homebuy scheme. It is good that the Welsh Assembly goes that bit further for our armed forces. That, I believe, is in contrast to the Government’s policy on pensions for the armed services.

As my right hon. Friend the shadow Defence Secretary pointed out, the Opposition accept the need for pay restraint in public sector pay and pensions in the current economic circumstances. However, a permanent move to uprating pensions every year in line with CPI rather than RPI does not recognise the unique condition of military service and retirement. It will, for example, mean that those invalided out, and widows who lose their partner at a relatively young age, will lose out—and big time.

The impact of the Government proposals on pensions uprating are stark and startling. For example, a disabled, double amputee, 28-year-old corporal would lose £587,000 by the age of 70. I do not believe that is fair, given the sacrifices made by our armed services and servicemen and servicewomen. Lyndon Moore, the secretary of the Nantyglo British Legion in Blaenau Gwent, supports me in standing up for servicemen, who, he feels, have been let down by the Government in their hour of need. I applaud the coverage of this matter in The Times and in the Pensions Fit for Heroes campaign of the Daily Mirror in recent weeks.

The Government have acknowledged that the e-mail sackings were a dreadful mistake, and the Defence Secretary’s apology yesterday was a full one. However, let us reflect on how it must feel to have one’s long-term national service terminated by e-mail, especially when one has served the country with distinction. The Government must sharpen up their act so that that dreadful mistake does not happen again.

I hope that in the short time left before the Budget, the Defence Secretary will make the case to the Chancellor for a rethink on armed services pensions uprating. We need an informed discussion on how we devise CPI and RPI. The International Association for Official Statistics has said that there is a risk of loss of public faith in official data. The public are sceptical about a measure such as CPI, which excludes housing costs. Service pensioners know that housing costs are a long-term element in their monthly outgoings, particularly for invalids and war widows. That is why CPI increases are so problematic for them, and that should be emphasised today.

Service personnel should be assured that the change in pensions uprating from RPI to CPI will be as brief as possible. Surely the Minister does not want to penalise service families for ever and a day. If the Government change their mind, it will be an important boost to service morale and will ensure that the military covenant is credible. Importantly, it is the right thing to do.

--- Later in debate ---

[Angela Smith]

rose—

[Nick Smith]

rose—

[Mr Robathan]

I shall give way to the hon. Lady, because she sat through the debate and did not get in.

[Mr Robathan]

We did not appreciate quite what an awful state—[Interruption.] I could point the House to innumerable references to, “When we open the books, we will find out what things are like.” We did not appreciate the awfulness. We certainly did not know that the MOD budget for the next 10 years was overspent by £38 billion. I am not sure what promise the hon. Lady is alleging that we are breaking, because I cannot see one.

[Nick Smith]

Will the Minister give way?

[Mr Robathan]

Yes, but I will make this the last time.

[Nick Smith]

The Minister hinted that he might be able to make some progress on pensions for widows and for people who have suffered injury. Can he give us some more detail on that?

[Mr Robathan]

I have had many discussions with representatives of the War Widows Association and the Forces Pension Society, and we are looking at particular cases and how we can perhaps take this forward. I cannot make any concrete commitment, but I can assure the hon. Gentleman that should we make any progress or change, I will let him know.

I thank my hon. and gallant Friend the Member for Beckenham (Bob Stewart) for his contribution. He, too, has been in receipt of a pension for a few years—a bigger one than mine, but there we go.

My hon. Friend the Member for Gosport (Caroline Dinenage), although not gallant herself, is married to a gallant officer. I am grateful for her contribution, in which she spoke from her experience of service family life. She is of course absolutely right: we have to look after the armed forces, and that is what we pledge to do.

I was rather surprised when the hon. Member for Ogmore (Huw Irranca-Davies), for whom I have always had a bit of affection, started to quote from blogs. I think we all read blogs from time to time, but most of the stuff that is written there is not worth repeating.