UK Armed Forces Pay Review Body 2015
I think it's safe to assume that the PM wants private business to pay the increases but he wasn't talking about the public sector who have (mostly) received increases over the past year, albeit modest ones. Government cuts & further austerity will be the order of the day for many years to come, even if the other lot get in after the next election, at least in the defence sector.
So I'd put money on the AFPRB coming up with '1%' again!