Reductions in Allowances

Discussion in 'Strategic Defence & Spending Review (SDSR)' started by OldSnowy, Jan 20, 2011.

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  1. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    This just in. Details available on MoDWeb:


    • The Strategic Defence and Security Review (SDSR) set out a requirement to reduce expenditure on Service and Civil Service allowances amounting to some £300M per year. Minister for Defence Personnel, Welfare and Veterans, Andrew Robathan, today announced the package of measures to be implemented for the Armed Forces.

    • Except where specifically stated these changes will take effect from 1 May 2011.

    Annex A – At-a-glance summary of changes

    Subsistence Allowances

    Day Subsistence (DS) - reduced from 1 May 11
    - UK DS reduced from £26.28 to £25 per day
    - Overseas DS reduced by 4.9%

    Incidental Expenses (IE) - removed from 1 May 11
    - except for personnel who are hospitalised

    Food and Incidentals Allowance (FIA) - reduced & eligibility change from 1 May 11
    - Reduced from £12.41 to £8.50 per day
    - Personnel accommodated within 3 miles of their unit's messing facility will be ineligible

    Special Messing Allowance (SMA) - rate calculation changes from 1 May 11
    - SMA will be set at 75% (set against the Overseas Subsistence Allowance for each country)

    Travel Allowances

    Motor Mileage Allowance (MMA)

    Reduced/removed from 1 May 11 - MMA Private Car Rate and MMA Converted Leave Rate to be aligned with the lower HMRC approved mileage rate, currently 25p per mile

    Removed from 1 May 11 - MMA Official Duty Rate (MMA (ODR)) removed from regulations

    Privately Arranged Passage (PAP) - reduced & elements of formula removed from 1 May 11
    - PAP refunds based on pre-booked non-flexible economy class air fares only, with accommodation and subsistence elements removed from the formula 1 May 11

    School Children's Visits (SCV) - reduced from 1 May 11
    - Parental Contribution to SCV increased from 50 to 100 miles per single journey. Allowance withdrawn post A-levels.

    Home to Duty Travel (HDT) - reduced Personal contribution increased from:
    1-3 miles from 1 May 11
    3-6 miles from 1 Apr 12
    6-9 miles from 1 Apr 13

    Separation allowances

    Get You Home (Travel) (GYH(T)) - reduced to 25p per mile (from 26p for GYH(T) and 31p for other GYH rates) from 1 May 11

    Get You Home (Early Years) (GYH(EY)) and GYH(EY(Overseas Assistance)) - restricted - to be removed on the commencement of Phase 2 Training or at the age of 18, whichever is later, from 1 May 11

    Get You Home (Seagoers) (GYS(S)) - will be reduced from a maximum of 12 to 10 journeys per leave year from 1 May 11

    Location Allowances

    Local Overseas Allowance (LOA)

    13 level rank based LOA Factor Plan reduced to 3 bands, LOA convention of 9 paid hotel nights reduced to 6 - from 1 May 11

    Exercise/Field Conditions rate of LOA reduced from 50% to 40% of the Single/Married Unaccompanied Full Rate - from 1 May 11

    Temporary Assignment and Seagoing LOA rates reduced from 75% to 60% of Single/Married Unaccompanied Full Rate - from 1 May 11

    Other LOA conventions revised to more closely reflect current lifestyles, and removal of elements covered by other provisions - from 1 Apr 12

    Living Out Supplement to LOA (LOSLOA) - calculation method replaced & eligibility change from 1 May 11

    Daily rates of LOS replaced with adjusted Food and Incidentals Allowance rates.
    Personnel accommodated within 3 miles of their Unit messing facility will be ineligible for LOSLOA. LOSLOA recipients will no longer pay the Daily Food Charge

    Recruitment and Retention Allowance (London) (RRA(L)) - restricted from 1 Apr 12
    - Allowance removed from OR5s and above including all commissioned ranks 1 Apr 12

    Relocation Allowances

    Disturbance Allowance (DA) - reduced from 1 May 11
    - All rates reduced by 10%, child element reduced by 51%: New rates will be - SFA £966, SLA £83, Child Element £75.


    Continuity of Education Allowances - changes to eligibility, governance and rules
    - Changes already announced in Dec 10, effective from 1 Apr 11


    Specialist Pay Reserve Banding

    Specialist Pay Reserve Banding (RB) reduced from 6 to 3 year system - from 1 Apr 12

    Premature Voluntary Release (PVR) rate of specialist pay reduced from 50% to 0% - from 1 Apr 12

    Commitment Bonus (CB) reduced by 50% for new entrant ORs - from 20 Jan 11

    Financial Incentive Schemes (FIS)
    FIS such as Golden Hellos to ensure there remains a requirement - to be reviewed
  2. Seems OK, no massive upsets there. Billy Bonus is I still receive IE.

    Bring on the greedy ****ing whingers and their wives.
  3. Fully agree, although the sigh of relief may be tempered by the threat of more to come. There was a piece in the blurb that recognised some of what we do is 'voluntary' and therefore fair game for reduction. So, by increasing Parental Contribution to SCV from 50 to 100 miles per single journey, the CM minors might as well stay where they are for the holidays. They've got sleeping bags...
  4. chimera

    chimera LE Moderator

    Just that not sure I would want to go through what you have been through just to get it!
  5. Seems OK, no massive upsets there. Billy Bonus is I still receive IE.

    Bring on the greedy ****ing whingers and their wives.

    Agreed - we can't be that short of money anyway. SoS still had the cash to get to Australia and NZ at the time the changes were announced and then it was on the front page of Defence Intranet while we were telling the blokes of the changes - an inspired bit of messaging!
  6. BuggerAll

    BuggerAll LE Reviewer Book Reviewer

    I tend to agree with the above that although it's not very nice it's probably reasonably fair with one exception. The HDT element.

    This does not affect me personally but I can think of a number of people in Birmingham who live in crap private hirings at just inside the 9 mile limit who have to use public transport to get to RCDM which is quite expensive. As I understand it the 9 miles is an as the crow flies measurement and the actual road journey may be considerably more, especially in a town centre. This does seem to penalise them for something over which they have no control. Regardless of what the blurb says about the average person in the UK having a 9 mile journey every day they still have an element of choice which service people do not.

    Again it does not affect me but I think it is a good thing that in future there will be an allowance to cover private vehicle moves between UK and Europe/BFG. The current arrangement always seemed a tad unfair to me. As an aside we've moved 6 times since 1999. Apart from the second one the DA has not covered our actual costs of moving.
  7. Something to think about on your 'average' 9 mile commute; the 'average' civvy works a 40 hour week.

    Think how much 'free' overtime the MOD gets out of all of us. More than £250M at a guess..........
  8. **** off and be a civvy then. I certainly know which is better, if you can't see past two bob and a picked eggs worth of allowances to the benefits of service then you're too thick too be of any use.
  9. Any news of LSA??
  10. Rant On

    Hello? I'm content with the cuts. The country is in financial crap order. It is my heartfelt belief that debts should be paid off before luxuries should be purchased. I'd take it further and stop foreign aid, if the greater British public have to suffer the painful consequences of over a decade of government waste then so should the non contributing residents of far off lands.

    I seem to recall that the figure for interest payments on our national debt is bigger than the national spend on some government departments. If my recollection is correct, then that is frightening.

    We, the country, should not be borrowing money to pay our daily bills and making charitable donations at the same time. RANK LUNACY.

    If a householder went to a bank manager and asked for a bank loan having explained that he is mortgaged to the hilt, fully car loaned, maxed on storecards, credit cards and clinton cards, overdrawn and worried about paying the utilities bills, then saying the new loan money he would give to Barnardos "cos the poor lickle children deserve it", I'm fairly sure he would be directed to the Citizens Advice Bureau - Debt Counsellor.

    Rant Off
  11. I guess this is just the start and I suspect there is more to come. I do know one thing and that is if SFA rates increase on 01 Apr, as well as being on a 2 year pay freeze, rise in VAT, loss of expenses etc, will have a serious effect on morale.......... I will be losing my HDT and unfortunately I cannot choose where to live, and with no public transport will be forced to use my own car at great expense in fuel costs. Rant over.
  12. You are spot on but we also have to shoulder some of these cuts. Lets just hope that no cuts are made to benefits of our wounded soldiers and that their rehabilitaion facilities and opportunties are increased; rather than either cut back or otherwise curtailed.

    There has been high level discussion that those unfit for further service be discharged more quickly, but that is unfair as they have little or no earning ability until they have been treated and retrained for civilian life. Surely those who are capable of remaining in service should continue to be allowed to, whilst they should not be included in the overall manning figures.
  13. All a bit idealistic really.
  14. I guess so especially given the Telegraph article today:

    “There is not an endless supply of money and people need to realise there is a serious financial situation and there are difficult choices to make,” one MoD official said.

    The Treasury is unlikely to step in to make up the shortfall, he added.

    A senior military source said: “What we are being asked to achieve is virtually impossible without wholesale reduction of UK forces worldwide. ""

    Optimism is the mother of disappointment!
  15. To an extent I think it is a good thing all that needs to happen is for the Forces to be given a defined roll and the resources to deliver.

    The modern problem is the belief that the Army is still at 1918 manning and that soldiers really are here to shovel snow in Edinburgh.

    As for casualties? They are being compensated and supported better now than ever before in history.