Correspondence

AFPRB remit letter from the Defence Secretary: 2023 to 2024

Published 16 November 2022

Dear Julian,

I would first of all like to express my thanks to the Armed Forces’ Pay Review Body (AFPRB) for your report and all the hard work that went into the 2022 pay round. In particular, my thanks go to Peter Maddison for all his efforts and contributions as the previous chair of the AFPRB. I also would like to take this opportunity to wish you all the best as you take on this important role. The Government continues to value the independent advice and contribution made by the AFPRB on behalf of our Service Personnel, a point reinforced by our full acceptance of the 2022 recommendations.

I am now writing formally to ask that you commence the 2023 pay round.

For the 2023 pay round the Ministry of Defence (MOD) will submit evidence to you for the Armed Forces in the usual way, including recommendations on pay, some allowances and on service provided accommodation and food charges.

Defence continues to reshape and grow 21st Century skills in line with the direction in the 2021 Integrated Review and ‘Defence in a Competitive Age’ Command Paper. We continue to strengthen our capabilities and prioritise our activities to ensure the UK remains ready to deter adversaries and win the new era of strategic competition.

As you are aware, the MOD looks forward to the recommendations of the Haythornthwaite Review of Armed Forces Incentivisation to support us on this journey. The AFPRB’s 2023 recommendations are nonetheless as vital as ever in helping to ensure that Defence continues to recruit and retain the highly skilled and motivated Service Personnel, we need to deliver Defence’s outputs. My evidence to you will provide details on our recruitment and retention pressures, and I ask that you continue to consider focussing recommendations on the need to meet Defence’s future vision.

Pay awards must strike a careful balance – recognising the vital importance of public sector workers, whilst delivering value for the taxpayer, considering private sector pay levels, not increasing the country’s debt further, and being careful not to drive prices even higher in the future.

In the current economic context, it is particularly important that you also have regard to the Government’s inflation target when forming recommendations.

Over the coming months, MOD staff will continue to support your visits and work closely with the Office of Manpower Economics to provide papers of evidence and oral evidence sessions for your consideration. I would be grateful if you could submit your report for the 2022-23 pay round by May 2023.

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

Yours sincerely,

The Rt Hon Ben Wallace MP