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An Armed Forces Pension and Compensation Bill has begun its passage through Parliament. This bill will enable the Government to implement new pension and compensation schemes for the Armed Forces. When we considered the Government's original proposals for these schemes in 2002, we were unimpressed by the basis on which they had been drawn up, with an emphasis on managing cost rather than achieving best practice; and we were critical of the standard of the consultation that the Government had carried out. The fact that Armed Forces personnel lack representation as employees should not disadvantage them.
The Government's most recent proposals address some, but by no means all of our concerns. On the plus side, entitlements for widow(er)s have been improved, and new rights for unmarried partners have been included. An independent appeals mechanism has been formulated for dealing with unsuccessful claims under the compensation scheme; and the period in which claims will be eligible has been extended.
On the negative side, however, the Ministry of Defence's interpretation of 'cost neutrality' in fact means that the value of benefits to Armed Forces personnel are to be reduced on the basis that they will live for longer; and most personnel will have to wait an extra five years before receiving their pension. For the compensation proposals, the appropriate standard and burden of proof remain a bone of contention. We also have concerns about various benefits intended to compensate former personnel for loss of earnings: early departure benefits will no longer be index-linked, and so are likely to lose value over time; while the income stream under the compensation arrangements is based on tariffs which seem to be insufficiently flexible.
We are not persuaded that the quality of communications with personnel has improved sufficiently to ensure that all personnel are able to make an informed choice between the existing and the new pension schemes. We have serious doubts about whether the MoD will be able to implement the schemes as soon as April 2005. We will continue to monitor their progress.
The Government has still not finalised a number of its proposals despite the extended timescale to which it has been operating. It is unreasonable to expect Parliament to agree to enabling primary legislation without these details being available. More detail should be on the face of the bill; and secondary legislation to introduce or amend the schemes should be subject to parliamentary approval and to proper consultation.
Our Armed Forces provide an essential service to their country which merits proper recognition when they are injured or killed, and in retirement. The bill now before Parliament is an opportunity to ensure that they and their families receive the provision they deserve.
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