Armed Forces (Flexible Working) Bill [Lords]

Debate between Toby Perkins and Nia Griffith

2nd reading: House of Commons
Monday 30th October 2017 Commons Chamber

[Nia Griffith]

I thank the right hon. Gentleman for his intervention, but his report also mentions the concern, which Opposition Members share, about the MOD’s recruitment contract with Capita.

The Public Accounts Committee recommended back in 2014 that the MOD

“should ensure that it is able to hold Capita to account for its performance in delivering the Army recruitment contract”.

I would be grateful if the Minister set out how exactly Capita is being held to account for its persistent and inexcusable failure to meet the targets.

Earlier this month we read reports that said that the serving reservists who staff recruitment offices will be replaced by civilian staff from Capita, further weakening the link between those who serve in our forces and the recruitment process. It is clear that intake rates cannot be allowed to continue falling year on year, and I would be grateful if the Minister also set out what specific action he will take to address that.

One important way of beginning to deal with the crisis in recruitment and retention would be to lift the public sector pay cap and give our armed forces the pay award that they deserve. Our personnel serve with courage and distinction and, particularly at this time of year in the run-up to Remembrance Sunday, we remember the sacrifices that they make on our behalf. Yet their pay was frozen for the first two years of the 2010 to 2015 Parliament, and it has risen by just 1% a year from 2013. When inflation is factored in, the starting salary of an Army private has been cut by more than £1,000 in real terms since 2010, yet accommodation costs have continued to rise and personnel and their families have lost out due to cuts in social security payments.

The Armed Forces Pay Review Body observed that the “perfect storm” has resulted in few personnel feeling that they get anything resembling a pay rise each year. Indeed, the latest armed forces continuous attitude survey found that satisfaction with basic rates of pay and pension benefits is at the lowest level ever recorded, with only a third of personnel satisfied with their basic pay.

[Toby Perkins]

If a business had huge shortages in certain skills because people with those skills were leaving for competitor organisations, would it not be incredible if that business was simultaneously spending huge amounts of money training new people to replace those who had left while, as part of its recruitment and retention strategy, keeping wages below inflation when all its competitors are increasing wages?

[Nia Griffith]

My hon. Friend, with his business experience, makes a valid point.

Of course, our armed forces do not have a trade union to lobby on their behalf, but I know from my conversations with personnel that there is considerable interest in the Government’s policy on pay. That is an area on which we want to work constructively with the Government, and I have already said that if they are prepared to amend the Bill to give a fair pay rise to our forces personnel, or even to allow the Armed Forces Pay Review Body to conduct an in-year review without the cap in place, the Government can certainly count on Labour support.

We welcome the Bill, which has support on both sides of the House. I look forward to working with Members to scrutinise and improve it appropriately.