Dear Folks, the interim changes to CEA have just been announced in DIB 2010/95. In essence, INVOLSEP rules are reinterpreted so don't expect CEA if posted to MOD or PJHQ, or into a sea-going billet.
Here's the text:
Defence Internal Brief
SERIAL: 2010DIB/95
DATE: XX December 2010
ISSUE:
Continuity of Education Allowances: Changes to Regulations and Governance
AUDIENCE:
All Service Personnel
TIMING:
Routine
ACTION:
To be briefed for Information Only
KEY POINTS:
· Minister for the Armed Forces, Nick Harvey, today announced changes to the regulations that govern eligibility for Continuity of Education Allowances (CEA)[1]. These changes become effective from 1 April 2011. This announcement is made ahead of the overall allowances savings announcement as it is deemed appropriate to provide longer notice of the changes to CEA regulations.
· Although changes to CEA are announced today, as part of the Strategic Defence and Security Review, the Department is reviewing the broad range of allowances paid to Service personnel. Work is ongoing to fully define the package of changes and further announcements on changes to Armed Forces allowances are expected in the New Year.
· Under the changes announced today CEA rates have not been cut, however changes to eligibility rules and the governance of claims for the allowance will reduce spend. Claimants will retain the current levels of CEA support providing all eligibility criteria are met under the new rules.
· The aim of CEA is to assist Service personnel to achieve continuity of education for their child(ren). It is designed to support family mobility when maintaining a stable family home in one location is not possible because of frequent assignments to different areas (both at home and overseas). However, where SP choose to serve unaccompanied, or where consecutive assignments occur within the same area, there is no requirement to support family mobility with CEA.
· CEA rules will be amended in 4 main areas;
· the link between Involuntarily Separated Status (INVOLSEP) and CEA,
· the “Sibling Rule”,
· aggregation of claims,
· the number of assignments which trigger a formal review.
· A dedicated CEA team will be established under the Services Personnel and Veterans Agency (SPVA) to ensure probity and compliance with the CEA regulations.
· In addition to these measures, the Secretary of State has directed that a review of CEA should be conducted given the current climate and the need to be clear that this expenditure is fully justified. Results of this review will be announced early in 2011.
DETAIL:
Background
1. In his Strategic Defence and Security Review (SDSR) statement, the Prime Minister announced that there would be cuts in Service and Civil Service allowances amounting to some £300M per year. For the Armed Forces, this represents circa £250M per year from an allowance spend of approximately £880M per year. About £80M of this reduction will be achieved as a result of reductions in numbers of personnel and measures to reduce the number of movements which generate claims. The remainder of the savings will come from changes in rules and rates across all relevant allowances.
2. The aim of CEA is to assist Service personnel to achieve continuity of education for their child(ren) that would otherwise be denied in the maintained day school sector if their child(ren) accompanied them on frequent assignments both at home and overseas;
Continuity of Education Allowances Measures
· A team will be established under the SPVA to ensure probity and compliance with the CEA regulations, in conjunction with existing single-Service compliance teams.
· The link between Involuntarily Separated Status (INVOLSEP) and automatic eligibility to CEA for permanent assignments will be removed. This will mean that CEA claimants posted to MOD London, and certain designated positions within JFHQ (PJHQ) will no longer be eligible to claim CEA whilst serving unaccompanied.[2]
· The claiming of CEA without accompanied service on the basis of historic RN regulations for previously designated seagoing billets will also cease. This will mean that, in future, Naval Service personnel permanently assigned to a previously designated seagoing billet who are ineligible for the transitional arrangements described below will be required to demonstrate their commitment to family mobility and accompanied service by moving their family home to the Base Port in order to retain continued entitlement to CEA, provided that all other eligibility criteria are met.
· Transitional arrangements have been agreed for existing CEA claimants serving unaccompanied whilst on permanent assignment to MOD London, designated positions within JFHQ (PJHQ) and Sea Service billets in Ships and Submarines, to retain the INVOLSEP concession for continued CEA eligibility until the end of their current assignment. Extant rules will then apply for subsequent appointments, therefore for the purpose of the assignment after serving INVOLSEP it will be assumed that a family move has occurred, even if the SP returns to a longstanding family home. Service personnel in possession of a permanent Assignment Order dated prior to this announcement and with a latest arrival date of prior to 1 Sep 11 to either MOD London, designated positions within JFHQ (PJHQ) and Sea Service billets in Ships and Submarines, and who intend to initially claim or to continue to claim CEA on the basis of the INVOLSEP provision, will be included in these transitional arrangements.
· The “Sibling Rule” will be removed from the CEA regulations. This will mean that in future, all children will be required to demonstrate their suitability for boarding for at least 3 terms before being allowed to transfer to day schooling, should the location of the family home permit.
· The Children’s Education Advisory Service (CEAS) will initiate a review of CEA entitlement where the claimant’s family home has not relocated during 2 consecutive assignments, rather than 3.
· Aggregation will be removed from the CEA regulations. This will mean that the ability to offset more expensive school fees against less expensive ones will be removed.
3. In parallel with the implementation of the SDSR allowances package, the Secretary of State has directed the Minister for the Armed Forces to carry out a full review of CEA. The importance of the allowance in supporting accompanied service, and in enabling the Armed Forces to deploy personnel efficiently to meet Service needs, is well understood. Nevertheless, it represents a significant investment in a relatively small proportion of our people, and in current circumstances we need to be clear that this expenditure is fully justified. The review will consider the fundamental rationale for the allowance, look at alternatives to reliance on independent schools and at the justification for the current set of entitlements. The review will look to give greater definition post 2015.
4. Ministers are conscious of the need to keep the period of uncertainty about the future of CEA to a minimum, and the review conclusions will be announced well in advance of any further measures being implemented. No short term savings targets have been assumed for the review, beyond those which attach to the specific changes to CEA already agreed as part of the SDSR and set out in this brief.
5. The Service Personnel Board and the Chiefs of Staff will be consulted as part of the review and their views will be taken fully into account in determining its conclusions and recommendations. It will involve consultation with the Service Community, Family Federations and other stakeholders who have an interest.
In order to avoid prolonged uncertainty, Ministers have asked that the review be conducted speedily with a view to decisions being reached in the early part of 2011. The review will consult widely with the Service community and with those outside who have an interest.
SUBJECT CONTACT:
DCDS PERS-PM-ALLCES SO1(Ingram, Toby Lt Col) 9621 86982
Defence Internal Briefs (DIBs) are released by the DMC Internal Communications Team. Comments or feedback on the process or format of this brief should be directed to Joanne Potter, DMC-Sec Internal Communications 2, Tel: 020 7218 1261, mil: 9621 81261.
For past DIBs see: http://defenceintranet.diiweb.r.mil.uk/DefenceIntranet/News/BriefingNotes/MOD/
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