Reserve Forces

Robert Flello Excerpts

Wednesday 3rd July 2013 Commons Chamber

[Mr Speaker]

Order. I am keen to accommodate the large number of right hon. and hon. Members who wish to contribute to exchanges on the statement, but doing so necessitates brevity.

[Robert Flello (Stoke-on-Trent South) (Lab)]

I too pay tribute to reservists, particularly those I had the privilege to meet in Afghanistan and Iraq on visits in recent years.

May I bring the Secretary of State back to the impact on businesses, especially SMEs? As we know, they are at the heart of the British economy. I have heard his statement, but I want to return to the concern that many SMEs have, because quite often it is a key individual in the business who is a reservist, and I am not sure that £500 is enough to cover the loss of that individual. Will he, as part of the White Paper process, look carefully at how he engages with businesses, particularly those that are not members of a wider business organisation?

[Mr Hammond]

We engaged extensively with business during the consultation period. The definition of an SME, of course, is very broad: up to 250 employees and £25 million. The £500 a month is not intended to compensate for the loss of the employee; it is intended to be an additional recognition, on top of all the other allowances and compensation amounts that employers can already claim. One of the crucial statements we made in the White Paper, and in the actions we have already taken, is the need to streamline the claiming procedure. One of the things we heard loud and clear in the consultation was that many employers find the process so cumbersome that it is hardly worth claiming. We are confident that, by streamlining the process, we will make it much more accessible and user-friendly for employers.