Armed Forces pay 2024/25

Armed forces personnel will receive a 6% pay rise for 2024/25. This is in line with the recommendation of the Armed Forces Pay Review Body (AFPRB). Pay for new recruits has been increased which the government said will mean “for the first time” the starting armed forces salary will be in line with the National Living Wage.

Pay award announcement

John Healey, the Defence Secretary, said “this year’s award provides a targeted and significant pay uplift for new recruits alongside a large headline increase of 6%.” The award was announced on the same day as other public sector awards on 29 July 2024.

The pay award for the armed forces included:

• A headline increase of 6% for personnel (5% for senior officers at two-star and above).
• The starting salary to be increased by 7.5% to “bring it into line with the National Living Wage”. From 1 April 2024 the starting salary is £25,200.
• The rate of initial pay to be increased to £25,200.

The Defence Secretary said that accepting all of the pay review body’s recommendations “represents an annual increase of c.£2,800 in the nominal ‘average’ salary in the Armed Forces as well as an annual increase of c.£1,880 in the starting salary for an officer”.

The Defence Secretary said the pay award “will be funded through reprioritisation and savings measures, including savings generated by reducing spend on consultancy.”

The AFPRB said one of the factors it considered was what it described as the historically high level of voluntary outflow from the armed forces and continuing shortfalls in recruitment:

We know that the armed forces face an acute problem in recruiting and retaining sufficient, trained and motivated personnel. Voluntary Outflow is high and during the course of the round reached a level last seen in the 1990s, while recruitment has fallen well short of intake targets. The size of the armed forces reduced by over 7,000 personnel in calendar year 2023.

The AFPRB also said it had been concerned “for some time” that the reduced pay is an obstacle to recruitment, particularly for those with pre-existing financial commitments and broader experience.

The AFPRB calculated that the net cost of all of its recommendations was £788 million. Of this total, £406 million is the cost of the increase in salaries plus allowances, recruitment and retention payments and other targeted payments for regular personnel.

How much do personnel earn?

The starting salary for service personnel, including new recruits, will be £25,200 from 1 April 2024. By comparison, it was £21,425 in April 2022.

Service personnel receive an additional pensionable payment on top of basic pay known as X-Factor. This is intended to recognise the special conditions of service life compared to civilian life. The AFPRB reviews this rate every five years and in 2023 recommended retaining the current rate of 14.5%.

The pay that an individual receives will depend on their personal circumstances and eligibility for specialist pay and allowances.

How is armed forces pay decided?

Pay for members of the armed forces is decided by the Ministry of Defence based on the recommendations of the Armed Forces’ Pay Review Body. The basic principle is that pay should be broadly comparable with pay levels in civilian life. The AFPRB is expected to consider other factors, such as the Government’s inflation target, when forming recommendations.

Satisfaction with pay has fallen

Satisfaction with the rate of basic pay is at its “lowest reported levels”, according to a survey of personnel published in May 2024. Less than a third (32%) are satisfied with the rate of basic pay. This is the lowest since recording began in 2008. A majority of personnel (51%) do not think the pay and benefits they receive are fair for the work they do.

Future changes to pay?

An independent review of pay and reward led by Rick Haythornthwaite recommended the services move away from a uniform offer towards bespoke reward packages, tailored to reflect the changing needs of personnel as their life and career evolves.

The Conservative government said it intended to implement all 67 recommendations and is “working to establish a reward and incentivisation architecture that will attract and retain the skills we need in the years ahead.”

On 25 July 2024 the new Labour government said the publication of a formal response to the report is a priority. Al Carns, the Minister for Veterans and People, also said that the core principles and recommendations of the Haythornthwaite review will be “central” to the recently launched strategic defence review. This review, which will be externally-led, is expected to deliver its report in the first half of 2025.