Lowest rank get 9.2% in Forces' biggest pay rise for four years

It is the biggest pay rise for four years and the highest of the public sector pay rises announced today.

A further 6,000 on the next-lowest pay level will get 6.2 per cent. There is good news too for all other ranks and officers, regulars and reserves, who will receive a 3.3 per cent increase. This increase will take effect from 1 April 2007.

The most senior officers (Major-Generals and equivalents and above) will receive a 2 per cent increase, as recommended by the independent review body and in line with overall increases in public sector pay.

Today’s decision comes on top of the new tax free operational bonus introduced in October – which gave special recognition to those serving in Iraq and Afghanistan and the Balkans, and which has so far been paid to around 31,000 people, totalling some £35m.

In total, around £350m more per year will be going into pay and allowances: £280m more in pay and £67m more for the operational bonus each year.

Des Browne, Secretary of State for Defence, said:

"I am delighted to be able to announce this significant pay rise for our Armed Forces, which is thoroughly deserved after what has been a challenging year. It reflects my ongoing commitment to make sure they get the support and recognition they deserve for the tremendous work they do.

"This decision comes on top of the new tax free bonus introduced in October – which gave special recognition to those on operations. Today’s decision recognises the superb work done by all our Armed Forces, wherever they serve. I am particularly pleased to confirm that our most junior servicemen and women will now get an extra £100 per month."

Air Chief Marshal Sir Jock Stirrup, Chief of Defence Staff, added:

"This pay increase is very good news for the Armed Forces. It recognises the key contribution our people and their families make to the nation, as well as the particularly onerous operational challenges they are having to face at the moment.

"It reflects how highly – rightly – they are valued by the Government and the country as a whole."

Today’s announcement also covered further enhancements for personnel on operations. The Longer Separation Allowance will also increase by 3.3%, and the 100 day initial qualifying period is being removed, meaning troops will be entitled to the daily rate after just ten days separated service.

In total, as a result of the increases announced today and in the autumn, Private soldiers deploying on their first operation will now receive:

• basic pay between £15,677 - £26,664
• £2,240 tax free Operational Allowance over a 6 month tour
• at least a further thousand pounds in separation allowance over a six month tour

Recruitment is improving, better than this time last year, but there are specific challenges in retaining our experienced people, and in response we are introducing new Financial Retention Incentives payable to Royal Marines, Infantry and Aircrew, providing an estimated extra £17m to approximately 2,300 additional personnel.

The Armed Forces' Pay Review Body (AFPRB) is an independent group comprising eight members and the Chairman, Professor David Greenaway. It reports annually on levels of pay for the Armed Forces.

The AFPRB bases its recommendations on broad comparability with similarly weighted civilian jobs. The Review Body gathers evidence from a wide variety of sources and takes account of a number of factors including Government evidence.