AFPRB
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Not quite 2.9% just 2% + a 0.9% non-consolidated payment. Whatever that is!
From Written Statement by SofS Defence
“I am today announcing the Government’s decision on pay rises for the Armed Forces.
The Armed Forces’ Pay Review Body (AFPRB) has made its recommendation for the 2018-19 pay award of 2.9%. We are accepting the spirit of this recommendation with a 2% increase to pay (implemented in September salaries, backdated to 1 April 2018) and, in addition, a 0.9% non-consolidated one-off payment (implemented later in the year, also back dated to 1 April 2018).
Today’s pay award will deliver an annual increase to starting salaries of £520 for an officer and £370 for a newly trained solider, sailor or airman or woman. This is in addition to the non-contributory pension and access to incremental pay progression.
The AFPRB has also made recommendations on rises and changes to other targeted forms of remuneration, and on increases to food and accommodation charges, which have been accepted. Where applicable, these rate changes will also be backdated to 1 April 2018.
The Government is committed to world class public services and ensuring that public sector workers are fairly paid for the vitally important work that they do. It is thanks to our balanced approach to public finances - getting debt falling as a share of our economy, while investing in our vital services and keeping taxes low - that we are today able to announce a fair and deserved pay rise for the Armed Forces, their biggest increase since 2010.
We ended the 1% average pay policy in September 2017, because we recognised more flexibility is now required to deliver world class public services including in return for improvements to public sector productivity.
We value the role of the independent Pay Review Bodies and thank them for their work in considering pay awards. In reaching a final position for 2018-19 public sector pay awards, we have balanced a need to recognise the value and dedication of our hard-working public servants whilst ensuring that our public services remain affordable in the long term, to contribute to our objective of reducing public sector debt. We have also sought to ensure that pay awards are fair and consistent across public sector workforces, reflect existing pay and benefit packages, in addition to recruitment and retention levels.
It is vital that we consider all pay awards in light of wider pressures on public spending. Public sector pay needs to be fair both for public sector workers and the taxpayer. Around a quarter of all public spending is spent on pay and we need to ensure that our public services remain affordable for the future.”
It is also vital that our world class public services continue modernising to meet rising demand for the incredible services they provide, which improve our lives and keep us safe.
From Written Statement by SofS Defence
“I am today announcing the Government’s decision on pay rises for the Armed Forces.
The Armed Forces’ Pay Review Body (AFPRB) has made its recommendation for the 2018-19 pay award of 2.9%. We are accepting the spirit of this recommendation with a 2% increase to pay (implemented in September salaries, backdated to 1 April 2018) and, in addition, a 0.9% non-consolidated one-off payment (implemented later in the year, also back dated to 1 April 2018).
Today’s pay award will deliver an annual increase to starting salaries of £520 for an officer and £370 for a newly trained solider, sailor or airman or woman. This is in addition to the non-contributory pension and access to incremental pay progression.
The AFPRB has also made recommendations on rises and changes to other targeted forms of remuneration, and on increases to food and accommodation charges, which have been accepted. Where applicable, these rate changes will also be backdated to 1 April 2018.
The Government is committed to world class public services and ensuring that public sector workers are fairly paid for the vitally important work that they do. It is thanks to our balanced approach to public finances - getting debt falling as a share of our economy, while investing in our vital services and keeping taxes low - that we are today able to announce a fair and deserved pay rise for the Armed Forces, their biggest increase since 2010.
We ended the 1% average pay policy in September 2017, because we recognised more flexibility is now required to deliver world class public services including in return for improvements to public sector productivity.
We value the role of the independent Pay Review Bodies and thank them for their work in considering pay awards. In reaching a final position for 2018-19 public sector pay awards, we have balanced a need to recognise the value and dedication of our hard-working public servants whilst ensuring that our public services remain affordable in the long term, to contribute to our objective of reducing public sector debt. We have also sought to ensure that pay awards are fair and consistent across public sector workforces, reflect existing pay and benefit packages, in addition to recruitment and retention levels.
It is vital that we consider all pay awards in light of wider pressures on public spending. Public sector pay needs to be fair both for public sector workers and the taxpayer. Around a quarter of all public spending is spent on pay and we need to ensure that our public services remain affordable for the future.”
It is also vital that our world class public services continue modernising to meet rising demand for the incredible services they provide, which improve our lives and keep us safe.
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[QUOTE This is in addition to the non-contributory pension][/QUOTE]
The ‘non-contributory’ pension that salary is abated for in lieu of payments? The abatement is currently 5% I believe and pensions are then based on your net rather than gross salary.
The ‘non-contributory’ pension that salary is abated for in lieu of payments? The abatement is currently 5% I believe and pensions are then based on your net rather than gross salary.
Probably better to say that the pension is based on abated pay rate (-4%), rather than net/gross and of course it can vary depending on your pension scheme. Either way, your point is spot-on as the statement is disingenuous as it suggests that we make no contributions.
+ a 0.9% non-consolidated payment. Whatever that is!
CG
I might be wrong, but I have a vague recollection from somewhere that the non-consolidated bit means it's not pensionable. Overall better than I had anticipated, but I don't know what that will mean for the next AFPRB given that there's no extra cash above the 1% for this round. In the worst case it could well mean future rises are far lower as budgets try to catch up with the funding required to pay the salaries. Let's see - it's not that long until the speculation starts for the next one given the delays in this one!
This tactic was used with the police last year. The government took some flack for this slight of hand and yes, it did mean that part of the pay increase was non-pensionable. This has a deleterious effect on the newer public sector career average pensions scheme and it also impacts death-in-service payments, ill-health and widows pensions. The pay award for the following year excludes this %, so if the armed forces received a 1% pay rise next year the actual increase in gross pay would be just 0.1%.
It is another thin-edge-of-the-wedge moment following AFPS15 as the armed forces now have a mixed pensionable/non-pensionable basic salary. I wonder what the AFPRB will do now. Their report weighed-up the argument for an inflation+ pay rise but on grounds of government affordability they settled on 2.9%. Now that we are not quite getting that will they look for a compensatory pay rise next year to fill the gap, or just give-up and rubber stamp their master's bidding, or honourably resign from the AFPRB?
For me this battle is over as I drew stumps in April, so this pay award finally tells me what my pension should have been on leaving.
It is another thin-edge-of-the-wedge moment following AFPS15 as the armed forces now have a mixed pensionable/non-pensionable basic salary. I wonder what the AFPRB will do now. Their report weighed-up the argument for an inflation+ pay rise but on grounds of government affordability they settled on 2.9%. Now that we are not quite getting that will they look for a compensatory pay rise next year to fill the gap, or just give-up and rubber stamp their master's bidding, or honourably resign from the AFPRB?
For me this battle is over as I drew stumps in April, so this pay award finally tells me what my pension should have been on leaving.
This tactic was used with the police last year. The government took some flack for this slight of hand and yes, it did mean that part of the pay increase was non-pensionable. This has a deleterious effect on the newer public sector career average pensions scheme and it also impacts death-in-service payments, ill-health and widows pensions. The pay award for the following year excludes this %, so if the armed forces received a 1% pay rise next year the actual increase in gross pay would be just 0.1%.
It is another thin-edge-of-the-wedge moment following AFPS15 as the armed forces now have a mixed pensionable/non-pensionable basic salary. I wonder what the AFPRB will do now. Their report weighed-up the argument for an inflation+ pay rise but on grounds of government affordability they settled on 2.9%. Now that we are not quite getting that will they look for a compensatory pay rise next year to fill the gap, or just give-up and rubber stamp their master's bidding, or honourably resign from the AFPRB?
For me this battle is over as I drew stumps in April, so this pay award finally tells me what my pension should have been on leaving.
It is another thin-edge-of-the-wedge moment following AFPS15 as the armed forces now have a mixed pensionable/non-pensionable basic salary. I wonder what the AFPRB will do now. Their report weighed-up the argument for an inflation+ pay rise but on grounds of government affordability they settled on 2.9%. Now that we are not quite getting that will they look for a compensatory pay rise next year to fill the gap, or just give-up and rubber stamp their master's bidding, or honourably resign from the AFPRB?
For me this battle is over as I drew stumps in April, so this pay award finally tells me what my pension should have been on leaving.
My understanding is a non-consolidated payment is effectively a one off bonus payment. So you will get a 2% pay rise, and a 0.9% bonus for the year. If this is the case, and you think you are getting a 2.9% pay rise, then be prepared for a 0.9% reduction in pay next year...
2% is still below inflation (and 2.9% is below the 3% inflation we had for the later half of 2017 and early 2018), so I think this is a poor deal that you had to wait too long for. If it really turns out to be 2% and not 2.9% then (IMHO) you are being screwed. Oh and the wonderful icing on the cake, all the charges have been increased and will be back dated....
I would expect that the "non-consolidated" 0.9% implies that it is not consolidated within pay scales and, as others have speculated, it will not appear in pay scales after the period that this pay award covers. ie, The next pay award will be reduced by the 0.9%. However, I do question the "not pensionable" aspect. I expect that anyone retiring in the near future who's pension is calculated on pay earned within the period covered by this payment would qualify? 
OAP
OAP
AFPRB 1018 Report:
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.
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.
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.
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Seems relatively straightforward, if a tad underhand.
This year someone on £50K from Apr '17 to '18 will get £51K plus £450 as a one-off at some point before April '19. Much as previous 'retention bonuses' were taxed but not pensionable I'm pretty certain this will be the same.
If next year's rise is 2%, and on time, they'll get £52,020 from April '19.
This year someone on £50K from Apr '17 to '18 will get £51K plus £450 as a one-off at some point before April '19. Much as previous 'retention bonuses' were taxed but not pensionable I'm pretty certain this will be the same.
If next year's rise is 2%, and on time, they'll get £52,020 from April '19.
Last edited by Willard Whyte; 24th Jul 2018 at 17:07.
I don't own this space under my name. I should have leased it while I still could
As OAP may remember we had a similar pay horlick before. We got an inflation pay rise every 6 weeks or so but it was not swept up into pay scales.
Seems relatively straightforward, if a tad underhand.
This year someone on £50K from Apr '17 to '18 will get £51K plus £450 as a one-off at some point before April '19. Much as previous 'retention bonuses' were taxed but not pensionable I'm pretty certain this will be the same.
If next year's rise is 2%, and on time, they'll get £52,020 from April '19.
This year someone on £50K from Apr '17 to '18 will get £51K plus £450 as a one-off at some point before April '19. Much as previous 'retention bonuses' were taxed but not pensionable I'm pretty certain this will be the same.
If next year's rise is 2%, and on time, they'll get £52,020 from April '19.
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Just been looking at the AFPRB Report. Recommended 2.9% on base pay. Ministers 'written response' is that they are accepting 'the spirit of the recommendation' by increasing base pay by 2% and a one off taxable non-pensionable 0.9% 'to be paid later in the FY' (no date commitment). Weasel words once again that short change the Armed Forces personnel....and they wonder why there is a recruitment and retention problem.......
Last edited by Jumping_Jack; 30th Jul 2018 at 11:06.
Just been looking at the AFPRB Report. Recommended 2.9% on base pay. Ministers 'written response' is that they are accepting 'the spirit of the recommendation' by increasing base pay by 2% and a one off taxable non-pensionable 0.9% 'to be paid later in the FY' (no date commitment). Weasel words one again that short change the Armed Forces personnel....and they wonder why there is a recruitment and retention problem.......
