Allowance Reduction Information

Discussion in 'Finance & Pensions' started by etsandy, Jan 20, 2011.

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  1. Hey Guys,

    I don't know if it is available for public release as yet, but if it is, would anyone be able to provide a brief outline on what is happening for reduction on allowance? Especialy any change to submarine related pay and GYH pay?

    Thanks in advance.
     
  2. Ministry of Defence | Defence News | Defence Policy and Business | MOD announces changes to allowances for Service personnel

    http://www.mod.uk/NR/rdonlyres/434C...54C/0/20110118changestoallowances_summary.pdf
     
  3. 'Specialist Pay Reserve Banding Cut' - good news – people in billets still drawing pay for something they haven’t done for 10 years is unacceptable.
     
  4. Many thanks for the quick reply! Dosn't seem anything to harsh, feel sorry for the new sprogs joining up that will be getting 50% commitment bonus. That may not work to well as manning may become an issue when it comes in! Very true Chaz will help weed out folk keeping all the inboard drafts for a quater of a career!
     
  5. There is a lot of info and comments already on ARRSE if you want more detail.
     
  6. I think you'll find that things like inboard drafts etc aren't quite always as black & white as you mention, I mean it's not like you've been around for all that long yourself is it, etsandy? Also, IF manning does become an issue later, then MOD can always reintroduce FRI's/golden hello's etc, as mentioned in the brief. Personally, I think in the main it's all quite positive. I do however feel sorry for the person who submits his notice whilst still drafted to a boat as presumably he will lose all his SM pay immediately - that's how it seems to read anyway.
     
  7. Hopefully it will also apply to submariners given 15 year extensions and they cannot go to sea on a submarine for medical reasons but still draw submarine pay.

    It is not made up just look at some of the the shore billet personel
     
  8. At-a-glance summary of changes

    Subsistence Allowances


    Day Subsistence (DS) - reduced from 1 May 11
    - UK DS reduced from £26.28 to £25 per day
    - Overseas DS reduced by 4.9%

    Incidental Expenses (IE) - removed from 1 May 11
    - except for personnel who are hospitalised

    Food and Incidentals Allowance (FIA) - reduced & eligibility change from 1 May 11
    - Reduced from £12.41 to £8.50 per day
    - Personnel accommodated within 3 miles of their unit's messing facility will be ineligible

    Special Messing Allowance (SMA) - rate calculation changes from 1 May 11
    - SMA will be set at 75% (set against the Overseas Subsistence Allowance for each country)

    Travel Allowances

    Motor Mileage Allowance (MMA)

    Reduced/removed from 1 May 11 - MMA Private Car Rate and MMA Converted Leave Rate to be aligned with the lower HMRC approved mileage rate, currently 25p per mile

    Removed from 1 May 11 - MMA Official Duty Rate (MMA (ODR)) removed from regulations

    Privately Arranged Passage (PAP) - reduced & elements of formula removed from 1 May 11
    - PAP refunds based on pre-booked non-flexible economy class air fares only, with accommodation and subsistence elements removed from the formula 1 May 11

    School Children's Visits (SCV) - reduced from 1 May 11
    - Parental Contribution to SCV increased from 50 to 100 miles per single journey. Allowance withdrawn post A-levels.

    Home to Duty Travel (HDT) - reduced Personal contribution increased from:
    1-3 miles from 1 May 11
    3-6 miles from 1 Apr 12
    6-9 miles from 1 Apr 13

    Separation allowances

    Get You Home (Travel) (GYH(T)) - reduced to 25p per mile (from 26p for GYH(T) and 31p for other GYH rates) from 1 May 11

    Get You Home (Early Years) (GYH(EY)) and GYH(EY(Overseas Assistance)) - restricted - to be removed on the commencement of Phase 2 Training or at the age of 18, whichever is later, from 1 May 11

    Get You Home (Seagoers) (GYS(S)) - will be reduced from a maximum of 12 to 10 journeys per leave year from 1 May 11

    Location Allowances

    Local Overseas Allowance (LOA)

    13 level rank based LOA Factor Plan reduced to 3 bands, LOA convention of 9 paid hotel nights reduced to 6 - from 1 May 11

    Exercise/Field Conditions rate of LOA reduced from 50% to 40% of the Single/Married Unaccompanied Full Rate - from 1 May 11

    Temporary Assignment and Seagoing LOA rates reduced from 75% to 60% of Single/Married Unaccompanied Full Rate - from 1 May 11

    Other LOA conventions revised to more closely reflect current lifestyles, and removal of elements covered by other provisions - from 1 Apr 12

    Living Out Supplement to LOA (LOSLOA) - calculation method replaced & eligibility change from 1 May 11

    Daily rates of LOS replaced with adjusted Food and Incidentals Allowance rates.
    Personnel accommodated within 3 miles of their Unit messing facility will be ineligible for LOSLOA. LOSLOA recipients will no longer pay the Daily Food Charge

    Recruitment and Retention Allowance (London) (RRA(L)) - restricted from 1 Apr 12
    - Allowance removed from OR5s and above including all commissioned ranks 1 Apr 12

    Relocation Allowances

    Disturbance Allowance (DA) - reduced from 1 May 11
    - All rates reduced by 10%, child element reduced by 51%: New rates will be - SFA £966, SLA £83, Child Element £75.

    Education

    Continuity of Education Allowances - changes to eligibility, governance and rules
    - Changes already announced in Dec 10, effective from 1 Apr 11

    Pay

    Specialist Pay Reserve Banding

    Specialist Pay Reserve Banding (RB) reduced from 6 to 3 year system - from 1 Apr 12

    Premature Voluntary Release (PVR) rate of specialist pay reduced from 50% to 0% - from 1 Apr 12

    Commitment Bonus (CB) reduced by 50% for new entrant ORs - from 20 Jan 11

    Financial Incentive Schemes (FIS)
    FIS such as Golden Hellos to ensure there remains a requirement - to be reviewed
     
  9. An interesting point - and well made no doubt. But I believe you are missing the point of why the reserve bands were introduced in the first place. IIRC they came about to encourage people back to sea by making a sea draft look more financially attractive. The fact that someone could remain inboard due to medical or indeed other reasons for a protracted period of time is really a different issue - quite often this can in part be due to the 'board of employability' stating that the individual can be employed, in which case drafty is bound to find that person a suitable place of employment within some specific ste of criteria. Quite often though the same board will of course turn round and say that the individual cannot be employed and must therefore leave the service - quite often at short notice.
    I do however know where you are coming from and TBH am quite surprised (as no doubt you and many others are) at some of the decisions made by the powers that be - sometimes we forget that these decisions are 'generally' made 'in the interest of the service' and often fail to see this as we are unaware of the full picture.
     
  10. You are quite correct. These personnel are retained on the understanding that they fill submarine specialist shore training/ support roles, often in non preference areas. They are not on the reserve band because they are only employed in specific "SP tagged" positions.
     
  11. janner

    janner War Hero Book Reviewer

    The Police went down the same road some years ago, some allowances were include in pay instead of being calculated separately others were stopped for new entries after a particular date, biggest one was the rent allowance, which ment that the new lads were on considerably less money than other newbies that had joined just before them and before the cut off date.
     
  12. Gutted that they're scrapping GYH(EH)! Going Culdrose in 3 weeks & its going cost a fortune to get home..
     
  13. Labour jumping on the bandwagon here.
     

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