Question to the Ministry of Defence:

To ask the Secretary of State for Defence, pursuant to the Answer of 12 June 2025 to Question 57928 on Armed Force: Deployment, what assessment his Department has made of the adequacy of the current allowance package in meeting the cost-of-living differences for service personnel deployed in high-cost overseas locations.

To account for the differences in the cost-of-living in overseas locations, eligible Service personnel are entitled to Local Overseas Allowance (LOA). LOA recognises the amount by which average essential day-to-day expenditure in an overseas location differs from that in the UK. LOA is calculated with regard to the difference in living costs, locally lived experience, and locally specific costs such as legally required items or banking charges.

LOA transitioned to a new, more accurate methodology in October 2024 which uses both Office for National Statistics and commercially available data to make it more responsive to prices faced by Service personnel. The Ministry of Defence continually reviews and monitors the allowance package to ensure it remains appropriate for varying local economic circumstances through feedback from deployed Service personnel.

The overall remuneration package for Service personnel deployed overseas recognises the unique demands of Service life and includes X-Factor pay which compensates for the conditions faced by Service personnel, including the impact of isolation and separation from families. Those deployed to particularly remote or operationally demanding locations, may also be entitled to Unpleasant Living or Unpleasant Work Allowances.

Although overseas location specific financial incentives were not considered during the Strategic Defence Review process, the importance of overall pay and other related measures were explored.