May I open by associating myself with your remarks, Mr Speaker, about the hon. Member for Birmingham, Erdington? We express our deepest sympathy to the right hon. and learned Member for Camberwell and Peckham (Ms Harman) and their entire family.
Armed forces pay remains competitive. Indeed, in 2021 approximately 35,000 service personnel earning less than £24,000 received a £250 consolidated pay uplift because, despite the public sector pay freeze, we are mindful of protecting the lowest earners in the armed forces during the public sector pay pause.
May I start by offering my condolences to the family of our hon. Friend, Jack Dromey, and in particular to our colleague, the right hon. and learned Member for Camberwell and Peckham? Our thoughts are with her at this time.
Since 2010, many armed forces personnel have experienced a dramatic real-terms decrease in pay, some by as much as 6.5%. With the cost of living increasing dramatically and personnel struggling to stay afloat financially, will the Minister now lift the pay freeze and restore pay to at least the levels of a decade ago, when his party came to power?
When considering armed forces pay, it is very important to look at it in the round. Service personnel benefit from subsidised food and accommodation, a fantastic non-contributory pension, and allowances on top of basic pay. If I may say, it is a little bit rich getting lessons on armed forces pay from the SNP, given that it has hiked tax on service personnel in Scotland to the tune of £580 per person. It is just as well that the Ministry of Defence is making up the difference.
I am very sad about the loss of Jack. I had known him since we both served together—him for the unions, me for the military—in Northern Ireland a long time ago.
Private soldiers, able seamen and aircraftsmen, after six months’ training and in accordance with the Armed Forces’ Pay Review Body, get roughly £3,000 to £4,000 less than a policeman who is also trained for about six months. That seems weird and I ask the Minister if he might slightly account for that.
As I said, we have to take note of the fact that service personnel benefit very significantly from subsidised food and accommodation, a non-contributory pension and allowances. Many young soldiers are also taking advantage of the opportunity to get on to the property ladder through the Forces Help to Buy scheme, which has been a great success.
I thank you, Mr Speaker, for what you said about Jack Dromey; his loss is felt by all of us across the House.
I take on board what the Minister said about pay below £24,000, but being as tough as it is for all those people, we think that that is inadequate. Moreover, is he aware that there are huge pressures in terms of the retention of more senior staff, particularly in the Royal Navy and the Royal Air Force? The gap between what they can earn in the private sector and what they currently earn in the Navy and Air Force, and how much their skills are in demand, are really affecting the ability to retain important members of staff.
The hon. Gentleman makes a good point, and that is why we offer some technical bonuses. We are also initiating a strategic review of terms and conditions and reward and incentivisation to ensure that we can compete with the private sector.
UK Defence Jobs
Dr James Davies (Vale of Clwyd) (Con)
2. What steps his Department is taking to support defence jobs throughout the UK.
May I pay tribute on behalf of the Cabinet and the Government to the hon. Member for Birmingham, Erdington (Jack Dromey)? We are sorry for his loss and our condolences are with his family. I shall remember Jack with his trademark mac that he often wore—he never changed it—and for his well-crafted arguments often against the Government, but nevertheless making strong and powerful points.
The latest figures from the Office for National Statistics recorded Ministry of Defence support to over 200,000 jobs in UK industry. Further economic growth and prosperity, including jobs, across the Union will be underpinned by £188 billion of investment in defence over four years and this Government’s commitment to a deeper and more strategic relationship with industry, as part of the defence and security industrial strategy.
Dr Davies
I thank the Secretary of State for that answer. There is great interest in north Wales in the opportunity that the new medium helicopter programme could bring to the region. Will he provide an update on the progress made by his Department ahead of the launch of a formal competition?
Last November, we held a successful market interest day with potential suppliers to discuss requirements for our new medium helicopter programme. Hopefully, by February, we shall start the process of the competition.
As my constituency neighbour, my hon. Friend the Member for Vale of Clwyd (Dr Davies), mentioned, the new helicopter programme could be significant in north-east Wales and generate around 400 jobs at Airbus directly, should its bid be successful. Will the Secretary of State confirm when the process is scheduled to be completed and when he expects the helicopters to come into service afterwards?
My hon. Friend makes an important point. Whoever wins this competition, it is important that they contribute to the prosperity and job opportunities for UK citizens wherever they may be. I am not interested in “here today, gone tomorrow” suppliers for this. We want to enhance British industry and make sure that these helicopters are properly made and put together in this country. Once the competition is complete, we hope to have the medium-lift helicopters in service from the middle of this decade.
I was pleased to read last week of a new five-year, £460 million logistics contract that has been issued which should deliver the MOD £54 million of efficiency savings a year. Will the Secretary of State outline what the new logistics information system will mean for jobs in the UK, and specifically, jobs in the east midlands?