Budget and Incremental pay rises

Discussion in 'Army Pay, Claims & JPA' started by flutedbarrel, Jun 22, 2010.

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  1. Guys, apologies for not being the sharpest tool in the financial box, but I trust incremental pay increases are not effected by todays budget?
  2. Anyone? Even scaremongering will do....
  3. Could go either way. Incremental pay increases (throughout the public sector, not just Mill) might be contractual and thus unaffected or he might mean both. The budget report just says "pay freeze" so I suspect its "wait, out" time
  4. No they are not. See DIB 2010/44, available on DII now, should be up on Armynet shortly.
  5. Or just read it here:


    • As part of the Government's Emergency Budget today, 22 June 2010, the Chancellor of the Exchequer announced a two year pay freeze from 2011-2012 for public sector workers, except for those earning £21K or less, who will see a pay rise of at least £250 in these years.

    • This measure applies to both Service and Civilian personnel and affects most of the public sector. It is designed to generate savings in order to reduce the national deficit.

    • The recently announced measure to double the Operational Allowance remains to recognise members of the Armed Forces who are serving in operational theatres.

    • The Department will now work closely with the Treasury and the Cabinet Office on the freeze on our pay structures and other elements of remuneration. Further details will follow once we have worked through these implications, such as how the freeze may apply to charges for Service personnel and performance pay for civilian personnel.

    • The Budget also announced two reviews to report next year; one on public sector pensions led by the former Defence Secretary John Hutton and a second, led by Will Hutton, on fairness in public sector pay.

    • It has already been made clear that the third year of the civilian pay award will be paid in August 2010 along with performance awards for the reporting year 2009/10. In addition this will not impact on the 2010/11 Armed Forces' Pay Review Body award of 2 per cent for military personnel announced on 10 March 2010.


    1. This two year pay freeze from 2011-12 will apply to the Civil Service, and workforces with Pay Review Bodies: the Armed Forces, doctors and dentists, NHS Agenda for Change, teachers, senior staff, and prisons.

    2. While pay will be frozen for two years for those earning more than £21K, the Government will ask the Pay Review Bodies to make recommendations on pay for those earning below this threshold, with a minimum payment of £250.

    3. We are awaiting guidance from HM Treasury and Cabinet Office about the implications of the freeze for civilian staff from August 2011.

    Public Service Pensions

    4. The Chancellor has also announced that John Hutton will chair an Independent Public Service Pensions Commission. The commission will conduct a fundamental structural review of public service pension provision and will report by Budget 2011. The Commission will also produce an interim report by the end of September 2010 considering the case for short-term savings within the Spending Review period, consistent with the Government's commitment to protect those on low incomes.

    Senior Pay

    5. The Government has asked Will Hutton to lead a review of fairness in public sector pay, reporting back in the Spring. The Fair Pay Review will make recommendations on how we can ensure that no public sector manager is paid more than 20 times the pay of the lowest paid person in their organisation. The SSRB will continue with its work to develop benchmark pay for senior managers across the public sector.

    Military Pay and Charges

    6. Annual Increments. Annual increments for Service personnel are not affected by the freeze and where Service personnel are entitled to progression up the incremental scale they will continue to receive it.

    7. Charges. The effect of the pay freeze on charges applied to the pay of Service Personnel has not yet been determined. This will be considered further in advance of April 11 when any changes would normally take effect.

    8. VAT Change. The increase in the rate of VAT announced in the emergency budget will result in an increase to the Entitled Casual Meal Charge from 4 January 2011.

    Commodore S J Woodcock (DCDS Head of Pay, Allowances and Manning and Pam Titchmarsh, DCP-EF PMRR DH
  6. JD you are a gentleman. Cheers.