The pay system which currently operates was introduced in 2001 and was the first integrated ‘tri-Service’ pay model. Although the system was viewed to be majorly advanced at the time it is now regarded as overly complex and to hold significant shortcomings and inefficiencies that have caused dissatisfaction among Service Personnel.
The reforms to pay will apply to all Armed Forces Regulars and Reservists, up to the ranks of Commodore, Brigadier and Air Commodore.
Defence Secretary Michael Fallon said: “These reforms will deliver a simpler, better and fairer system of pay for our Armed Forces. They will enable us to better target pay to skills and ensure that we continue to recruit and retain the right people.”
General Sir Nicholas Houghton, chief of the defence staff, said: “Pay is a key element of the package that attracts and retains skilled, motivated individuals within the Armed Forces. This new pay model, which both meets the needs of the Services and offers a good deal for our people, has my whole-hearted support.”
