Extracts from DIB 2005/15: (Unclas)
2. LOA aims to represent the necessary extra costs of living abroad; it is not an inducement for service abroad, a reward either for service in adverse conditions or compensation for separation and turbulence. It is not designed to fund an improved
lifestyle overseas, to make allowance for any representational responsibilities or to assist with the purchase of capital items like cars or garden furniture. LOA does not take account of any loss of spouses’ earnings. The allowance is designed to cover the necessary extra costs incurred by the average Service person and their accompanying families; it does not attempt to reflect the precise circumstances of particular individuals. It is assumed that personnel are expected to spend the same amount of salary on day-to-day living that they do in the UK, with LOA only meeting
the assessed necessary extra costs. If the assumed lifestyle is not more expensive than the UK, personnel are judged to be able to live on their normal pay and no LOA is paid.
3. LOA rates are produced by adding together the total overseas expenditure on all items included in the budget (which includes food, clothing, laundry, toiletries, postage and telephones) and subtracting the total of UK expenditure. Particular local conditions may also give rise to inclusion of additional elements in the calculations – for instance, extra drinking water in a hot country. Once these two sets of calculations are made, the extra expenditure necessary in that overseas area is apparent. In some areas of the world the result is a zero or even negative figure; in these cases no LOA is payable, because UK pay by itself allows the assumed living standard to be maintained.
5. The Conventions for the 2005 Cycle cover: Meals Out, Drinks Out, Mess Functions, Drinks in Mess, Food in Mess, Home Entertainment, Food at Home, Drinks at Home, Public Transport, Pre-Recorded Music, Newspapers/Magazines, Telecommunications, Sports & Hobbies, Dry Cleaning, Laundry, Running a Car, Household Cleaning Materials, Stationery/Postage, Toiletries, Clothing, Cigarettes, Hairdressing, Cinema/Spectator Sports, Toys, Baby Sitting, TV/Video, Domestic
Assistance, Bank Charges and Leave Accommodation.
6. The exact amount of any change resulting from adopting these new Conventions will not be known until the calculations are completed during the Summer of 2005, although it is expected to be between +3% and -20%. Furthermore, although Gibraltar, Italy, Brunei & Germany will have been fully reviewed using the new Conventions between now and 1 Oct 05, any reductions
resulting from these reviews will be held until 1 Oct 05, whilst any increases will be promulgated via the usual methods.
So, as the
only identifed area of reduction is babysitting, when you take into account all of the 'conventions' listed above, how do you justify a 20% drop?
SBG
