My Lords, at Second Reading there was much discussion of the potential consequences of the Bill on pay and benefits received by our Armed Forces. On this side we agree that it is perfectly reasonable that if somebody decides to scale down the time commitment of their job there should be an appropriate adjustment to pay and there will be consequences for pensions, but I describe that as part-time working, not flexible working. Indeed, I believe the Government also understand that and maybe agree with it. Throughout the Bill the proposed new working arrangement is referred to as part-time working. The only reference to flexible work is in the short title. However, the Minister will have heard concerns from all sides that this change could represent an attempt at cost saving or a slippery slope to forced part-time work.
In meetings the Minister has assured us that there will be no compulsion and no one will be forced into part-time or flexible working. I am certain that that is
welcomed on all sides, but in our discussions the Minister explained that there was already in existence a system of flexible working which did not involve service personnel taking a pay cut. I may have misunderstood, but I understood that to be the case. I have a number of questions to ask about that existing scheme, such as how widespread is it? Is it some form of informal arrangement, varying from place to place and dependent on local interpretation, or is it codified in some way? Is the existence of such a scheme publicised in the forces?
A number of these questions have been answered in the very useful papers that the Minister has provided to us, which leads me to ask whether it is intended that this flexible working arrangement will be operated alongside the part-time working arrangement outlined by the Bill. In the case of someone who needed to take half a day every Friday for, say, the next 10 weeks to accompany a wife or partner to hospital, could this not be done under a flexible working arrangement whereby that person would make up the hours and not suffer a loss of pay? Another person may decide that he or she wants to commit to fewer hours and work part-time. That would obviously have an impact on pay and pensions.
A life in the Armed Forces can be incredibly rewarding in many ways, but it is rarely highly lucrative. The very existence of the x-factor payment demonstrates that being in the forces is not like any other job. Our amendment on pay and allowances would protect the full-time equivalent base level of pay, the x-factor payment and any other universal payment or allowances provided to personnel serving in any of the regular forces. It would not preclude people from working part-time but would prevent the option of working part-time or subject to geographical restriction—which the Minister acknowledges is envisaged for only a small number of people—being used as justification to reduce remuneration overall.
A recent document provided by the Bill team states that,
“personnel who remain working on a full-time commitment will not see a reduction to their basic pay, x-factor payment, and any other universal payments”.
I therefore hope the Minister will accept our amendment so that this information is available for all to see. In the same document it is stated that the Government are,
“engaged with the Armed Forces’ Pay Review Body to help determine what a fair and appropriate reduction”,
of the x-factor payment would be for those who have limits placed on them at their level of separation. There is also discussion on the need to inform how the Armed Forces Pension Scheme will operate after the passage of the Bill. I hope we will hear more from the Minister about these points.
I thank the noble Baroness, Lady Smith of Newnham, for tabling her amendment on access to accommodation. We have received assurances from the Minister and his officials that those affected by the Bill will not see any change in their entitlement to service accommodation. If this is the case, surely the Minister will agree to put these assurances in the Bill.
Amendment 16 tabled in the name of the noble Baroness, Lady Burt of Solihull, is also important.
As with the issues of accommodation, we are simply asking that the assurances we have already received are added to the Bill. Similarly, Amendment 17 tabled in the name of the noble Baroness, Lady Jolly, is also invaluable. Some important points have been made and it may be that the Minister is not able to respond positively today. However, we shall certainly be looking for much more when we come to the Report stage. I beg to move.
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