Armed Forces Commissioner Bill

Nusrat Ghani Excerpts

Report stage
Tuesday 21st January 2025 Commons Chamber

[Mr Bailey]

The ombudsman who came to speak to us the other day gave a clear account of the challenges and issues that she faced and elucidated on a number of challenges around addressing the specificity of any individual complaints that she had been made aware of, due to the distance between the complaint and her appearance before the Committee. I think it is worth reviewing the entirety of her evidence because, for me, it did nothing more than emphasise the need for the Bill to be passed as drafted and to take note of my challenges to the amendment.

On the wider status of the service complaints system, efforts to enhance consistency and accessibility are ongoing. I take this moment to thank the ombudsman, Mariette Hughes, and her team for their work to improve the service complaints system. It was clear from her responses to our questions last week that she was conscious of the need to continue improving the system throughout the transition to a new commissioner.

I am sure the Ministry will continue its work to implement the recommendations of the ombudsman’s office, particularly in ensuring that there is a single entry point for complaints and a consistent approach in the recording of all the grievances across defence, as laid down in successive annual reports.

On amendment 6, the Government are committed to swiftly establishing the Armed Forces Commissioner through a rigorous appointment process, ensuring that the role is filled by a highly qualified and security-cleared individual who can advocate effectively for the armed forces community. Although the Bill does not detail a specific implementation timetable, which colleagues will know is typical of primary legislation, this is a priority for the Government. I believe that colleagues from all parts of the House will recognise that the appointment process must be done correctly. The appointment will be subject to a full public appointments process, regulated and overseen by the Commissioner for Public Appointments. This process will include necessary vetting and security clearances, building trust among armed forces personnel that the appointment—[Interruption.] The implementation timeline will also account for the passing of the secondary legislation and a smooth transition from the current Service Complaints Ombudsman to the new Armed Forces Commissioner—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Does the hon. Member require a moment?

[Mr Bailey]

No.

[Madam Deputy Speaker]

Are you happy to continue?

[Mr Bailey]

Yes.

[Madam Deputy Speaker]

Wonderful.

[Mr Bailey]

In conclusion, Madam Deputy Speaker, the creation of an Armed Forces Commissioner will provide a powerful voice for service personnel and their families, ensuring that their concerns are heard and addressed at the highest levels. As we move forward with the Bill, we must remain vigilant in our efforts to improve service life, address systemic issues and uphold the highest standards of behaviour within our military. The success of the new role demands, and depends on, our continued support and scrutiny. I look forward to seeing the positive impact that this Bill will have on the lives of those who serve our nation.

[Madam Deputy Speaker]

A substantial contribution there. I call the shadow Minister.

[Mr Francois]

On Second Reading, we began by announcing that, with regard to the Bill, our aim was to be a critical friend, and that remains our aim today, although I feel that, at one point, we may become very critical. May I begin, however, in a bipartisan spirit by pointing out that, even though we are here today to debate the extremely important matter of the welfare of our armed forces, so far at least, as pointed out by the hon. Member for Dunfermline and Dollar (Graeme Downie), the SNP has not made a single contribution to this discussion—and neither for the record has Reform. And in both cases, that is a shame.

We debated this Bill in Committee in December, and following that I should like to speak to amendments 8 to 11, plus new clause 2, in my name and the name of my hon. Friend the Member for South Suffolk (James Cartlidge), who is in his place. First, though, let me commend the Chair of the Defence Committee for his speech. For the record, he is having a good run at the moment. He has had three Select Committee reports, on which he has been allowed to make statements, and the Committee has only been up and running for a few weeks, so that is a very fast start.

I shall be relatively brief in my remarks on amendment 8, because we covered this issue in some detail in Committee. Moreover, my hon. and gallant Friend the Member for Spelthorne (Lincoln Jopp), as a former commanding officer of the Scots Guards, made some incisive points about the amendment, not least in relation to the interaction between the proposed Armed Forces Commissioner and the chain of command. That point was also touched on by the hon. and gallant Member for Leyton and Wanstead (Mr Bailey), before he was inexplicably distracted.

Suffice it to say for now, it was mentioned numerous times across all parts of the Committee that, in addition to demonstrating their independence, the Armed Forces Commissioner would have to work hard in this new role to win the trust of armed forces personnel and their families. Indeed, during the public evidence session, General Sir Andrew Gregory, the controller of SSAFA, made the very constructive suggestion that the commissioner would need to undertake a lot of visits to armed forces locations to meet both personnel and their families as part of that trust-building process. When I was an MOD Minister, I tried to make a lot of visits, too, so I can well understand the merits of the general’s suggestion. According to the Government’s timetable, the new Armed Forces Commissioner is likely to be up and running sometime in 2026. I hope that whoever takes up the post will be minded to listen to General Gregory’s sage advice.

Turning to amendment 9, we raised pensions and death-in-service benefits in Committee. As I shall go on to explain, we were determined to raise this issue on Report, not least because it is both important and unresolved. I would like to look at one aspect of military pensions and then at death-in-service benefits specifically. It is interesting that we lack some important statistics about military veterans who have left the armed forces and then draw their service pension. For instance, we have an armed forces continuous attitude survey, or AFCAS, which is an annual exercise to tell us the attitudes of armed forces personnel on everything from housing repairs to overseas deployments. Similarly, we have a reserves continuous attitude survey, or RESCAS, to ask questions about the opinions of our much-valued reserves, and we also have a families continuous attitude survey, or FAMCAS, to seek the views of service families. However, there is no official veterans continuous attitude survey—no VETCAS, as it were—to tell us the opinions of veterans. However, a number of veterans charities gather data in this area outside the direct responsibility of the Ministry of Defence.

I recently tabled a written parliamentary question to MOD Ministers about their estimate of the number of veterans who would be affected by the recent decision to seriously restrict winter fuel allowance availability. The response that came back from the Department around a fortnight ago was, in essence, that it did not have the data. I humbly suggest that someone needs to try to collate that data as soon as possible, because I am not sure the public would be pleased to learn that many veterans—although we cannot say precisely how many—could lose their winter fuel allowance as a result of the Chancellor’s Budget.

Indeed, the Royal British Legion, which knows a thing or two about veterans, has expressed concern that the Government have

“not identified how this policy change will impact older veterans”.

A RBL spokesman recently said:

“A large number of older people have served in the UK Armed Forces, many of whom face additional heating costs due to caring responsibilities or disability”—

--- Later in debate ---

[Mr Bailey]

I thank the right hon. Member for giving way. He is citing a specific example that the Armed Forces Commissioner would have to oversee. That is not relevant to the discussion about the Bill or the amendments. Will he bring up any of the other myriad exceptional circumstances of pain and suffering for our service personnel that your leadership, under 14 years of the previous Government—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. “Your leadership” refers to me, and it is up to the Chair to determine what is in scope. For the benefit of other colleagues, it is up to the speaker to accept or decline an intervention. Do you have more to say, Mr Bailey, or shall I return to the shadow Minister?

[Mr Bailey]

No thank you, Madam Deputy Speaker.

[Madam Deputy Speaker]

I call the shadow Minister.

[Mr Francois]

Thank you, Madam Deputy Speaker.

--- Later in debate ---

[Mr Francois]

I thank the hon. Gentleman for his intervention. As we are on Report, we are trying to amend the Bill where we think it could be improved. Just because we have the Bill as originally produced on First Reading does not mean that it cannot be improved. If I may humbly say so, that is what Report is about.

This subject is pressing—I say this particularly to the hon. Member for North Durham—as the consultation on it closes tomorrow. The Veterans Minister replied to me on this subject—hey presto!—just this morning. I quote from his letter:

“I would seek to reassure the Right Honourable Gentleman that an existing exemption in Inheritance Tax legislation means that active members who die as a result of their service, are exempt from Inheritance Tax provisions.”

However, that only applies to those killed while on active service. It does not apply to those who are still in the service of the Crown but die of natural causes, so I am afraid that the Veterans Minister’s reply is smoke and mirrors, as it deliberately ducks the issue of those who die of natural causes while still in service with living dependants. The Government have already upset farmers and business owners through their proposed inheritance tax changes; they surely do not want to upset service families as well.

I say to the Minister that if, at what is now the third time of asking, we do not receive a satisfactory reply this afternoon, we will be strongly minded to press amendment 9 to a Division in order to hold Ministers to account and try to achieve positive change. With the consultation closing tomorrow, I will listen very carefully to what the Minister says about this issue in his response, but having given him two previous bites at the cherry, I am afraid that we may be likely to divide the House if we do not receive a satisfactory reply on behalf of those service families who may be affected.

As you can see, Madam Deputy Speaker, amendment 10 covers three topics: the

“operation of the Continuity of Education Allowance”,

or CEA as it is known;

“the provision of Special Educational Needs tuition”

for the children of armed forces personnel; and

“the maintenance of service families’ accommodation.”

I will take those topics in reverse order.

On service families’ accommodation, I welcomed in Committee the recent announcement that the Government intend to, in effect, buy back service family accommodation from Annington Homes. I know that my hon. Friend the Member for South Suffolk (James Cartlidge) also welcomes these proposals because—as Ministers, to be fair to them, have already acknowledged on the Floor of the House—while in government, he spent a great deal of time working on the scheme. He is understandably very pleased to see those efforts come to fruition, albeit under a Government of a different colour, as indeed am I. We should give credit where it is due.

Service housing was mentioned multiple times in Committee, and there seems to be little doubt but that it qualifies as a general service welfare matter. However, I have included the topic in this amendment to facilitate a brief discussion on the management and maintenance of service housing post Annington, as it were, and in the timeframe during which the new Armed Forces Commissioner is likely to be in operation. The fact that the MOD will in effect recover the freehold of its properties and be the landlord opens up exciting opportunities to change the maintenance of service family accommodation and, indeed, of single living accommodation as well.

The Minister will be aware that, when I was a Minister, I was commissioned by a former Prime Minister to write two reports: one was on armed forces recruitment, subsequently entitled “Filling the Ranks” and delivered in 2017; and as a result of the first report, a second one was on retention, entitled “Stick or Twist?” and delivered in February 2020—barely a month before the nation went into lockdown because of covid. I know that some Defence Ministers have kindly taken the time and trouble to look at those reports, so I shall not attempt to repeat their contents here, except to make one specific point on the management of SFA.

Having looked at the matter in detail, my team concluded very strongly that there must be a better way of managing service housing than the current Future Defence Infrastructure Services contract. Our alternative, which I believe now has new resonance as the homes are transferred from Annington back to the MOD, would be to form a dedicated forces housing association, the fundamental purpose of which would be

“to provide high quality, well maintained accommodation for service personnel and their families at an affordable cost.”

I think the Minister has kindly read this report, as has the Veterans Minister, who has responsibility for it, and I hope he will take that on board.

We debated special educational needs in some detail in Committee, so I do not propose to repeat all of that again, but I refer the Minister to a recent Public Accounts Committee report that was published last week on the topic.

The continuity of education allowance is a very important issue, particularly as it affects retention. The VAT increase of 20% will affect around 4,200 children of service personnel, but the MOD is increasing the CEA cap only by 12.5% for senior school students and 16.6% for junior school students, leaving their parents to make up the difference from their post-tax income. This has already come into effect from 1 January, or about three weeks ago. A joint briefing note from the Independent Schools Council and the Boarding Schools’ Association points out that the VAT will cover both tuition fees and boarding accommodation at independent boarding schools. In the worst cases, the VAT will have an adverse impact on military families using CEA, who could see their contributions increase by over 50% for senior school pupils. The Treasury’s VAT consultation said that it would

“monitor closely the impact of these policy changes on affected military and diplomatic families, with the upcoming Spending Review being the right time to consider any changes to this scheme.”

The spending review—[Interruption.] Madam Deputy Speaker, I believe we have until 6 o’clock. The spending review will not report until this summer, but military families are having to pay the increased costs now, and I have a whole range of quotes that I could read into the record.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Mr Francois, please do not read out all the quotes, but come to your conclusion.

[Mr Francois]

I will not read them out, but the point, in terms of retention, is that this is not just an officer’s benefit. It is a very important benefit for senior non-commissioned officers. If the costs become unsustainable, there is a risk that they will leave the armed forces, and that someone whom it may have cost the Crown over £1 million to train will leave, which would very much be a false economy.