Ministry of Defence: Public Bodies

Ministry of Defence written question – answered on 30th July 2015.

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Photo of Lord Moonie Lord Moonie Labour

To ask Her Majesty’s Government what organisations have been established in the last five years by the Ministry of Defence that are wholly funded from within its budget; and which of those are not subject to civil service pay scales, terms or conditions, and why.

Photo of Earl Howe Earl Howe The Minister of State, Ministry of Defence, Deputy Leader of the House of Lords

The Ministry of Defence (MOD) has set up two arm's length organisations in the last five years that are wholly funded from within its budget.

Defence Equipment and Support was set up as a bespoke trading entity on 1 April 2014. It has a number of freedoms and flexibilities to manage its own business, outputs and workforce within an operating cost envelope set to drive significant efficiencies. This includes the freedom to implement its own pay and grading structures to reflect the highly specialised labour market in which it operates.

The Single Source Regulations Office (SSRO) was established by the Defence Reform Act (DRA) 2014. The SSRO is wholly funded from within the MOD budget, via grant-in-aid. SSRO employees are not subject to civil service pay scales, terms and conditions. The DRA specifies that SSRO employees are not in the civil service of the state, ensuring the independent discharge of their duties.

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