I think the term is death by a thousand little cuts?
Whilst the economy is bad and times are hard outside, the MOD can afford to do as it wishes - we have mortgages to pay and so retention is not so much of an issue. However, when things start to improve - as it will one day - watch the people flood out the door.
Slightly off topic, but they have also introduced the new redundancy terms when times are hard - 3 months pay maximum for those of us on AFPS 75. So on the one hand we have to give 6 months notice to leave, but they only have to give us three months pay to get rid of us! Truely one-sided and harsh for people who have given decades of loyal Service.
In sum, MOD make hay whilst times are hard because when it gets better, the experience will walk out the door and the military will be so much worse for it.