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Andrew Robathan (The Parliamentary Under-Secretary of State for Defence; South Leicestershire, Conservative)

With effect from 16 June 2011, the Service Personnel and Veterans Agency (SPVA) will cease to have the status of executive agency of the Ministry of Defence (MOD).

The SPVA was formed in April 2007 from the merger of the Armed Forces Personnel Administration Agency (AFPAA) and the Veterans Agency (VA). The purpose of the merger was to provide both serving and retired members of the armed forces and their beneficiaries with a single point of contact for all personnel administration matters, and this has been achieved.

The SPVA will become part of the new Defence Business Services (DBS) in 2013. The SPVA will relinquish its agency status from 16 June 2011 as this is not considered critical to delivering its business, but it will retain its name until it is incorporated into DBS to avoid the unnecessary expenditure associated with re-branding. This change in operating status will have no impact on SPVA’s customers and will achieve staff reductions in the support functions of £319,000 per annum, starting in late financial year 2011-12. Wider savings to Government are also anticipated, in particular the costs incurred in auditing the agency’s annual report and accounts.

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