Armed Forces Personnel

Sheryll Murray Excerpts

Thursday 10th November 2011 Commons Chamber

[Stella Creasy (Walthamstow) (Lab/Co-op)]

I am honoured to follow the hon. Member for Poole (Mr Syms), who talked passionately about the importance of supporting the families of servicemen and women in this country.

I think that I bring a slightly different dimension to the debate because I am possibly the only person here who is the partner of somebody within our military, and therefore feels absolutely passionately—

[Sheryll Murray (South East Cornwall) (Con)]

indicated dissent.

[Stella Creasy]

I apologise—I see the hon. Lady shaking her head. I was not aware that she had a connection as well.

[Sheryll Murray]

Will the hon. Lady acknowledge that my hon. Friend the Member for Gosport (Caroline Dinenage) is married to a member of the armed forces?

[Stella Creasy]

Absolutely. My point in raising this is simply to say that the concern for all of us who are interested in the welfare of our armed forces is not only about the people who serve but about those who support them. We have to support not only our armed services but those in their families who are affected by what they do.

Each of us is here today to remember the sacrifices of those who have served within our communities and our country. My hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) admirably put on record our gratitude to the people who, unfortunately, have lost their lives in the past few weeks alone. I echo those sentiments. I also want to put on record the gratitude that I am sure we all feel towards the people from my own community in Walthamstow who gave their lives. Let us therefore say to the family of Regimental Sergeant Major Darren Chant of the Grenadier Guards, who gave his life for our safety on 3 November 2009, that we will never forget his sacrifice.

I also want to recognise the contribution of those who have served and come home. In particular, I put on the record my thanks to Rob Richier, who retired recently after 35 years of service in the forces. He is now leading the Royal British Legion in Walthamstow. I was honoured to host a dinner for 150 people for his retirement and in support of the work that he is doing in Walthamstow. I have seen at first hand from working with him what a difference he is making to support members of the armed forces in Walthamstow.

I wanted to speak in this debate to raise a particular concern that affects forces families. My hon. Friend the Member for Barnsley Central (Dan Jarvis) referred to the tragic case that many Members will have seen in the press yesterday of a serviceman and his wife who felt so forgotten that they took their own lives after they had fallen badly into debt and were struggling with their financial situation. A critical issue that we must address in dealing with the welfare of our armed forces and their families is their finances. My hon. Friend the Member for Clwyd South (Susan Elan Jones) raised the particular concern of homelessness in relation to the armed forces. I want to consider the experience of the armed forces in accessing finance. I will draw on evidence of how the American military have dealt with this issue and of their concern about how armed forces personnel manage their money.

In 2006, the Department of Defence in America conducted research into the impact of payday lending on servicemen and women and their families. It recognised that companies were targeting them because of a number of factors, not least the relative youth of the military and the cash-flow fluxes and shortages generated by life in theatre and at home. Another factor was that the American military took a strong line on indebtedness among their members, which meant that many of them did not seek debt advice and counselling early on to avoid debt problems.

What is particularly striking is that the American military recognised the problems of debt among their servicemen and women as a threat to military readiness. They recognised that debt was the second most stressful aspect of the military lifestyle and that it outpaced separation from families and being on deployment. In particular, they recognised that because military families were not necessarily able to access credit in the way that the rest of can, they were particularly vulnerable to a reliance on high-cost credit. The research found that the average borrower in the American military had taken out nine payday loans in a year and was paying back $834 for a $339 loan.

Consequently, the John Warner National Defence Authorisation Act was passed in 2006. It closed the loophole that allowed American lenders to exploit service personnel and introduced an interest rate cap to make it impossible to lend to military personnel at more than 36% APR. Clearly, there are still problems in America with indebtedness in military families, but awareness about the issue has been raised, as has the protection for those families. Indeed, America’s Consumer Financial Protection Bureau now has a special service dedicated to soldiers, the Office of Servicemember Affairs, which is headed by Holly Petraeus. One of her many acts is to promote credit unions to service people.

I raise that example not simply to say how much the Americans have done to support the families of those who serve in the military, but to raise my concern that exactly the same problems are happening among military families in the UK. The payday loan companies that have exploded in the UK in the past 18 months are already targeting the military. Loansite.co.uk markets itself as the forces loan finder. Easymilitaryloans.co.uk—the title alone is a giveaway—makes a virtue of lending to service personnel in the UK with poor credit histories. QuickQuid, whose interest rate is 1,734%, states on its special military site:

“You provide security and protection for your country—shouldn’t your armour against financial problems include access to military loans when you need them?”

The consequences of that targeting are becoming all too clear, not least to the Royal British Legion, which has a dedicated benefits and money advice service that does fantastic work to help service personnel and veterans with debt problems. That service is up against it in the current economic climate, especially given the rate at which the high-cost credit industry is growing. It is particularly striking that whereas in its first year of operation in 2007 the service helped 2,500 army personnel, last year the figure rose to 11,000. It predicts that the figure will keep rising. The most telling point for this debate is that nearly a third of the service’s clients turn to it because they have taken out unsecured loans.

We know that high-cost credit is increasingly used by those who have no access to mainstream credit. Indeed, research in Sheffield found that 40,000 people in that city alone were in that position. We know that a worrying proportion of people taking out payday loans are doing so just to make ends meet. One in four of them need the money to buy food or essentials, with 44% of them using it just to pay off other debts. In that context, people who are financially fragile because they or a member of their family serve in the military are particularly at risk.

The Royal British Legion states that debt problems tend to be much more complex for Army personnel than for civilians, and that they require a higher level of debt advice. It estimates that 63% of the debt advice that it offers is classified as specialist advice, compared with just 12% of the casework of normal citizens advice bureaux. Such figures demonstrate not only the importance of what the Royal British Legion’s money advice service does but the uniquely complex nature of the debt problems that many of our service personnel face.

We know that the payday loan industry is growing rapidly in this country, and that the risk of its targeting our military service personnel is increasing. We know, too, that we could act quickly to regulate the market as a way of providing real protection not just to service families but to the 6 million people in our country who are financially fragile. That was why I wanted to raise the issue today.

I hope that I can encourage the Minister to consider doing exactly what the American military have done, and at least commission research into the nature of debt in our forces’ families in the UK, so that we can understand the consequences of payday loan companies and the difficulty that those in the military face in making ends meet. I also hope that when he has seen that research, or even the work that the Royal British Legion is doing on welfare advice, he might be persuaded to speak to his colleagues in the Department for Business, Innovation and Skills to talk about how it would be possible to introduce a cap on the cost of credit to protect people. I also encourage him to consider how to ensure that we have a credit union that serves the UK military and their families, so that they can access affordable credit.

We all remember today the service of those who have made the ultimate sacrifice and given their lives for a better tomorrow. I have simply raised my points to ask that that better tomorrow does not include debts, and that we as a Parliament act as quickly and appropriately as we can to ensure that we give all our citizens protection from payday loan companies.

--- Later in debate ---

[Sheryll Murray (South East Cornwall) (Con)]

Armed forces personnel issues are very close to my heart. My daughter serves as a Royal Navy officer and I grew up in my constituency with the knowledge of the importance of HMS Raleigh. I have heard first hand the concerns of Royal Navy personnel throughout that time, but I have recently learned of issues that concern me and I hope my right hon. Friend the Minister will be able to provide me with some answers today.

One area where civilians frequently come into contact with our armed forces personnel is search and rescue. According to a Library paper of 22 February this year on the search and rescue service, the RAF has 16 Sea King mark 3 or 3A helicopters in service, with 272 personnel currently employed in roles directly related to search and rescue activities, and that the Royal Navy Fleet Air Arm has nine Sea King mark 5 helicopters, with 81 similarly employed personnel. That means that the average number of service personnel for every search and rescue helicopter is 17 for the RAF, but nine—almost half—for the Royal Navy. Will my right hon. Friend the Minister explain this difference between the two services?

The figures seem to suggest that some services are already more efficient than others and, therefore, that there is less fat to cut. A parliamentary written answer on armed forces deployment confirmed:

“Each service operates different harmony guidelines. Royal Navy personnel should not exceed 660 days deployed in 36 months, the Army 415 days in 30 months, and the RAF 280 days detached in 24 months.” —[Official Report, 14 December 2009; Vol. 502, c. 820W.]

Those figures equate to a diverse average deployment length across the three services. The separated service figures show that the term “overstretched” means three different things to the three services. Coupled with the reputed average deployment length, the Army deploys for around six months at a time, the RAF rarely deploys for longer than three months and the Royal Navy deploys for around six to nine months. This suggests that the deployment burden on certain sections of the three services is higher than others.

As a result of the differences in separated service, the frequency of deployment also varies between services. A Royal Navy warfare or engineering rating, or a warfare officer, can expect to deploy repeatedly year on year. I know of one warfare officer—not my daughter—who has deployed for seven to eight months in each year from 2008 to 2011. This deployment burden should be taken into account when demanding redundancies, as any squeeze that increases the burden further could have consequences for manning those key positions.

Finally, I want to address the redundancies. Royal Navy personnel were informed of the outcome of the redundancy selection boards on 30 September this year, almost a month after the RAF and Army announcements on 1 September, placing all Royal Navy personnel at a disadvantage. It meant that they were the last to register in the career transition partnership, which will be working at maximum capacity anyway to manage the surge in service personnel taking redundancy. I understand that the delay allowed financial resources to be drawn from two financial years.

The disadvantage was confirmed in a letter I received from my constituent, Mr Spencer. He wrote to me about the recently announced redundancy tranche implemented by the Royal Navy. His stepson is a serving Logistician Steward and has been given 12 months’ notice of redundancy. He was informed at the end of September and it is now proving extremely hard to place him on any meaningful course to prepare for civilian life. Most college apprenticeships and other vocational courses start at the beginning of the autumn term, in September, and he is finding that the best training courses are fully subscribed until the end of the summer term 2012. Mr Spencer feels that little thought appears to have been given to this by the MOD, and I believe that it has done Royal Navy personnel a major injustice by badly timing the date on which individuals were informed. His stepson also approached the local armed forces careers office in Plymouth to inquire about entering the RAF as a regiment gunner or the Royal Navy to pursue a career as a Royal Marine. Both branches are recruiting new entrants, but he was told that he will not be able to apply to join either service for 18 months from the date on which he was informed of his redundancy.

Mr Spencer feels that that rule is rather narrow-minded, and the armed forces careers office was unable to give him the reasons for it. He points out that his stepson is fully trained in weapons handling and first aid, has the other basic military skills that one would expect of him and presents a low training risk. More importantly, he loves life in the forces, and, although he accepts the reasons for his redundancy, he considers it ridiculous that he is not able to apply for other branches of the armed forces when they are actively recruiting. Perhaps the Minister, when he sums up, will provide me with some answers to those questions.