Correspondence

Armed Forces pay round 2027 - remit letter

Published 15 July 2026

Dear Julian,

I am writing for two reasons. Firstly, to thank you and the members of the Armed Forces’ Pay Review Body (AFPRB) for your independent expert advice and insight, and the contribution the collective membership makes on behalf of Service Personnel. I would particularly like to thank you for working with us to bring Pay Round 26 forward. While we were ultimately unable to announce the award earlier than last year, we are now well placed to do so with the 2027 award.

I am pleased that this government was able to accept your recommendations for the 2026/27 pay awards. The headline increase of 3.6% delivered a pay award that continues to recognise the extraordinary professionalism of our Armed Forces and their work to keep Britain secure at home and strong abroad – foundational to this government’s Plan for Change.

Secondly, I write to you to formally commence the next pay round for 2027/28. As part of this, we will provide our Departmental evidence as usual in the Autumn, setting out the funds available to Defence for 2027 to 2028, as well as the recruitment and retention context alongside earnings data and our strategy for delivering the vision of the 2025 Strategic Defence Review.

Since the publication of the Strategic Defence Review, the narrative surrounding global security has continued to intensify. As the PM set out at the Munich Security Conference in February, the world is becoming a more dangerous place. Right now, thousands of service men and women are working to protect British lives, British interests and support our partners in the Gulf region. That is why the government has made a historic commitment to spend 5% of GDP on national security (3.5% on core defence) by 2035: a generational increase in spending which underlines our commitment to the security of the UK and allies.

The AFPRB’s work in the coming year remains vital. To go beyond simply strengthening our Armed Forces and fully embrace a whole of nation response, it is more important than ever that our military personnel continue to be recognised in such a way that reflects their contribution to our society, the unique nature of the work they do and the context in which they operate. The “Offer” must remain compelling and relevant for current and aspiring Service Personnel, impressing the sense of national pride and purpose that has always characterised our nation in times of conflict on generations to come. However, the pay award must be balanced against priority investment areas across the Defence portfolio, including wider aspects of our offer to people, for example accommodation, training and activity. While Defence spending is set to increase, much of this is earmarked for Capital programmes and the Resource Departmental Expenditure Limit available to the MOD remains taut. We must therefore acknowledge that high pay awards come with challenging trade-offs elsewhere.

During this pay round, you will receive evidence from my department, HM Treasury and key stakeholders. My department’s evidence will include recommendations on pay, targeted measures, allowances, and Service provided accommodation charges. We will also provide updates on other elements of the Armed Forces’ benefits package. Over the coming months, Ministry of Defence staff will continue to support your visits and work closely with your Secretariat to provide written evidence for your consideration and facilitate remuneration discussions in oral evidence sessions.

We remain committed to bringing 2027/28 pay announcements forward further. That is why we are launching this pay round earlier than the previous pay round. I would be grateful if you could support an earlier pay announcement by submitting your report at the earliest point that allows you to give due consideration to the relevant evidence; a February submission would help us get the pay award announcement back on time. I recognise that changing the timeline from recent years will present challenges for you, but I am sure you also share the Government’s belief in the importance of returning to more timely annual pay processes. To enable you to submit your report earlier, our department will aim to meet your deadlines and bring the evidence process forward.

Thank you again for your hard work and dedicated commitment to our Armed Forces.

I am copying this letter to the Chancellor, Chief Secretary of the Treasury and Cabinet Secretary.

Yours sincerely,

THE RT HON DAN JARVIS MBE MP
Secretary of State for Defence