Question to the Ministry of Defence:
To ask the Secretary of State for Defence, what assessment he has made of the potential merits of forgiving debt owed by service personnel who applied for accelerated incremental progression.
Accelerated Incremental Progression (AIP) allows a Service person an immediate progression in their pay level as a result of a work-related course or a qualification. Each individual can qualify and claim for two AIPs during their career, at a point of their choosing.
Our Service personnel do a difficult job and it is important they receive accurate pay for the hard work they do. While the majority of awards are made correctly, misinterpretation of the published qualifying criteria for AIP has resulted in some individuals receiving an incorrect award. Unfortunately, payment errors occur occasionally. We obviously regret such occurrences. It is right that we correct identified errors and ask for repayment of monies wrongly received. Allowing individuals to keep money that they are not entitled to would be unfair to both taxpayers and other Service personnel who did not receive this payment. It would also be inconsistent with HM Treasury instructions on the management of public money.
If an individual overpayment to a Service person is equal to or less than four days’ gross pay then the full sum is recovered, without notification, from the next monthly salary payment. For overpayments greater than four days’ gross pay, a notification is made on the next available monthly payslip that a debt has been incurred. Recovery action is then scheduled after two subsequent pay periods, and any overpayments recovered are made at no more than four days’ gross pay per month.
Service personnel who wish to challenge the reason for any recovery of an overpayment may submit a case through their Chain of Command to Defence Business Services. In addition, processes are in place for Service personnel: to agree to pay back any overpayment over a shorter period; to make a formal objection against recovery on hardship or other grounds and; to argue that the debt be written off or repaid over a longer period. All recoveries are postponed while casework or objections are being considered.
Errors in the payment of AIP are dealt with in the same way as any other payment error - the account is corrected and any overpayment recovered. The calculation of money owed is simply the difference between what has been paid and what should have been paid had the error not occurred. AIP does not occur at a particular rate or have a defined cash value.
Courses and qualifications which are eligible for AIP payments are listed in Joint Service Publication (JSP) 754 (Tri-Service Regulations for Pay and Charges), which is updated biannually as required to meet Service manning requirements. The single Services are responsible for decisions on which courses or qualifications should qualify for AIP payments. It is not possible to quantify the number of people who may have erroneously applied for AIP payments on the basis of the criteria relevant to any particular edition of this JSP. Overpayments can occur for a number of reasons which do not necessarily arise from changes to eligibility criteria set out in JSP 754, although erroneous claims for courses which are no longer eligible can be a factor.
Information about the number of Service personnel who have repaid money as a result of AIP payment errors since 2010 could be provided only at disproportionate cost. However, our records indicate that 488 Army personnel who received erroneous AIP payments have repaid or are making repayments and 423 Royal Navy personnel who received an overpayment through the misapplication of Qualification Points have repaid or are making repayments. Additionally, approximately 1,500 Royal Air Force (RAF) personnel have been identified as having received erroneous AIP payments, which are required to be repaid; this represents 15% of all RAF AIP payments made.
The total that has been overpaid and which is being paid back is in the region of £3.1 million. Each Service person or ex-Service person is required to repay the amount owed. As described above, each case may be subject to challenges and objections. The average amount to be repaid per person is in the region of £1,285 and the date by which payment must be paid varies according to the specific circumstances of each case.