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Armed Forces Pay

Part of Oral Answers to Questions — Defence – in the House of Commons at 2:30 pm on 19th December 2011.

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Photo of Philip Hammond Philip Hammond The Secretary of State for Defence 2:30 pm, 19th December 2011

The Government recognise the unique and important role played by the armed forces, which is why we doubled the operational allowance to £5,280 tax free, why the incremental pay system will continue during and after the pay freeze, and why we have exempted the armed forces from the average 3% increase in pension contributions that public sector workers will pay. I recognise the concern that the hon. Gentleman expresses, and I have discussed it with the Armed Forces Pay Review Body. The proposals that the Chancellor announced in the autumn statement for continued pay restraint after the freeze include flexibility for the Ministry of Defence to address specific problem areas if we find we are losing, or failing to recruit, specialist staff.