AFPRB 1018 Report:
We note also that the most recent CPI inflation figure is at 3 per cent, with the Retail Prices Inflation (RPI) figure at 4 per cent; while no longer an official measure, RPI remains a figure that service personnel recognise, and regularly mention to us.
We considered whether a pay award that was consciously above inflation was necessary to achieve the results we are seeking. However, against that, we need to take into account the evidence on affordability, and the continuing pressures on public finances. On balance, we recommend an across-the-board increase of 2.9 per cent in base pay for 2018-19. While it is below CPI inflation, it represents a significant change from the 1 per cent that we have recommended for the last five years. We believe that Service personnel will recognise that affordability constraints remain.
We are proposing that this increase should be across-the-board, as was supported by MOD during oral evidence, since we wish to send a general message this year.
Looks like the message failed at the Treasury as they will only fund a 1% pay rise this year. The remaining money will come the MoD itself in the form of further cuts to manpower and equipment. I could quote the AFPRB comments on low moral, shortages, gapping, poor retention, high outflow, low recruitment, understrength etc etc, but it appears that this is not worth the ink.