Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 1-19)

MINISTRY OF DEFENCE

18 FEBRUARY 2008

  Q1 Chairman: Good afternoon. Welcome to the Committee of Public Accounts. Today we are considering the Comptroller and Auditor General's Report on Leaving the Services. We welcome back Sir Bill Jeffrey. Should I congratulate you on your knighthood, Sir Bill?

  Sir Bill Jeffrey: You may do, yes. Thank you.

  Q2  Chairman: Mr Chris Baker and Air Commodore Phil Miles. Air Commodore, we should thank you for arranging a very interesting visit to Aldershot where the Committee looked at what you do to help people who intend to leave the Services. Can I just ask, Air Commodore, you arranged the visit and we enjoyed it, but I just wonder whether, as often happens in this sort of thing, help tends to go to those who need it least? I was struck by the very high quality of those people we spoke to, people who were fighter pilots and the rest, who were learning building skills which they had no intention of carrying out in private life; they openly admitted to us that they were looking forward to doing up their bathrooms with those new skills. It may all be very useful but I wonder if what I said is not true and whether you should be more proactive. There is evidence in this Report, for instance, for Early Service Leavers that we know this is a very skeleton type service. I am not just talking about Early Service Leavers; I am talking about people who may have real problems when they leave the Services. I wonder whether you should be more proactive to help those who might really have problems rather than just having a reactive service where there is possibly one little job you want to learn, motorcycle maintenance skills or whatever, but it may not be necessarily part of the public interest. What do you say to that?

  Air Commodore Miles: Chairman, I think there are several aspects to your question. Firstly, as regards the training that is available at the Resettlement Training Centre, it does cover a broad range of disciplines, some 55 in all, some of which lead very much to vocational qualifications which are recognised outside. There are some courses, small, short courses, which are much more life skills courses but also give people a taster for particular avenues of employment which they may or may not wish to follow up later on. As regards the Early Service Leavers, I am sure we will discuss that later on this afternoon. We do provide a service overall which seeks to deliver resettlement commensurate with the service that people have done. We very much look at resettlement as an incentive to, and a reward for, longer military service.

  Q3  Chairman: I think this is mentioned in paragraph 2.31: " ... 16% of Early Service Leavers were unemployed and looking for work" compared with 6% of Service Leavers overall. That should worry you, should it not?

  Air Commodore Miles: In terms of the Early Service Leavers, it is true that there is a higher proportion of those who are not in employment six months post discharge, but it is actually comparative to that of the general cadre of males under 25-years old. Of course, that includes a very broad numbers of capabilities. Remember also the Early Service Leavers are people who have limited skills to offer the job market.

  Q4  Chairman: Those may be just the sort of people you should do more to help, should you not, rather than the very experienced men that we met on our visit who, frankly, were highly employable in any event.

  Air Commodore Miles: I come back to my point, Chairman, that the philosophy of resettlement is very much to actually deliver a reward for further service. Many of the people who are Early Service Leavers—

  Q5  Chairman: —So the philosophy is to reward those who have given most to the Services—

  Air Commodore Miles: Very much so.

  Q6  Chairman: —rather than to help people get jobs.

  Air Commodore Miles: Of course, most of the Early Service Leavers leave the Armed Forces without actually reaching their trained strength and, therefore, have actually failed the military training.

  Sir Bill Jeffrey: If I may, Chairman, this is a difficult balance. It is interesting that your observation is that this is the group that needs most attention. Objectively it may be but we also need to bear in mind, however, that one of the most important issues for us at the moment is to encourage retention and to keep people serving. I think also we are getting better at hitting the Early Service Leaver market than we were even when this Report was written.

  Q7  Chairman: Sir Bill, why is it such a painfully bureaucratic process? Why is there so much form-filling involved? As I understand it, the culture in the Armed Forces is not an individual form-filling culture, they are often not used to filling out their own forms, yet here you are asking them to go through many form-filling hoops. Is that fair to them?

  Sir Bill Jeffrey: We need some form-filling so that there is a proper audit trail for entitlement and delivery and adequate stewardship of public funds. We have reduced the number of resettlement specific forms.

  Q8  Chairman: In paragraph 2.24 it says there are 11 different forms during resettlement.

  Sir Bill Jeffrey: We have reduced the resettlement forms to eight recently and I think, of these, only one, which is the one relating to authorisation of resettlement training, could be said to be very complex. It is something we keep on working at because we appreciate, as you do, that the population we are often dealing with certainly does not want to be going in for any more form-filling than they have to. I do not know whether the Air Commodore wants to add to that.

  Air Commodore Miles: The numbers of forms that you quoted do, of course, include forms for use of extended learning credits and, therefore, they are forms which are in general use throughout people's careers where they are entitled to take up learning credits. The resettlement forms, as the PUS has said, there are only ten of those and we have reduced those to eight already, and there is only the complex form there. The complexity of the form is not actually driven by us, it is driven by and large by where competences lie within the single Service structures for authorising various things because each Service is structured differently and different people have different authorities and accountabilities.

  Q9  Chairman: Can we look at figure nine now, "Reasons for not attending the Career Transition Partnership (CTP)". Clearly people think highly of this operation but it is one in ten who cannot attend these courses. Should you not ensure this is an entitlement? Should you not say that they must be able to join these courses rather than they can?

  Sir Bill Jeffrey: For the Early Service Leavers I think we are now saying that they must attend for the interviews and briefings. Air Commodore, do you want to deal with this question?

  Air Commodore Miles: May I clarify, Chairman? Are we talking about those who are entitled to access to Career Transition Partnerships?

  Q10  Chairman: That is right. If you look at figure nine it says that some, for instance, are delayed on operations, some have too much work to do. It occurs to me that perhaps commanding officers are not enabling all their people to actually attend these courses because they are involved on operations or they have got too much to do, too far to travel, and there are other reasons.

  Air Commodore Miles: It is true that there have been pressures in the past and, indeed, there still are pressures to do with their other work activities which are militating against people attending. We have actually taken quite a lot of steps already to mitigate that. For example, in the Army if one has served four years then your last four months of service have to be within the UK. That was introduced in November. We always encourage Service Leavers to begin their resettlement preparation as early as possible to offset the disruption of operational tours.

  Q11  Chairman: Is that being adhered to? The National Audit Office told me in the briefing just now it was six months, is that right, or is it four months?

  Mr Andrews: It says in the Report that it is six months.

  Air Commodore Miles: Six months is what we aim at for everybody, they have their last six months of service in the UK, however within the Army, to accommodate particular issues that they have at the moment with operational commitments, they have made an insistence that certainly the last four months of a person's career should be in the UK.

  Q12  Chairman: That is being abided by, is it?

  Air Commodore Miles: To the best of my knowledge, Chairman. As I say, this came in pretty recently, last November. I am sure if you require further clarification we could provide a note on it.

  Q13  Chairman: That leads me to my next question, Sir Bill. Obviously the level of operations is at a more intense level than ever before in peacetime. Why are you allowing this intensity of operations to militate against people's ability to attend these courses which are vital for their future employability prospects?

  Sir Bill Jeffrey: It is worth bearing the numbers in mind. If you look at table nine the most common reason given for not attending the CTP was the view that it was not useful or relevant to the person's needs or they wanted to waive their entitlement. Out of 5,000 people surveyed just over 20 cited delayed on operations as a reason for being unable to do this. That is 20 too many obviously but it is not a huge issue. I am very keenly aware, and we have discussed it in front of this Committee in the past, of the pace of operational deployment at the moment. As the Air Commodore says, we are trying very hard to conduct things in such a way that as people get towards the end of their service they do have space and time to concentrate on this.

  Q14  Keith Hill: I would like to ask one or two questions about the housing prospects of those leaving the Service. My presumption, or the evidence, is that the military life is a pretty peripatetic one and that means that Service personnel are unlikely to stay in one place long enough to put down roots.

  Sir Bill Jeffrey: It varies, Mr Hill. That is certainly true of the Army. A figure that surprised me in preparing for this hearing was that 61% of Service Leavers already own their own homes, so it is not as uncommon as all that and we are trying to encourage it. Obviously Service families move more than others, generally speaking, but it varies depending on which Service you are in.

  Q15  Keith Hill: Since you have mentioned the survey and that 61% let us go straight into what the survey shows. One thing that we ought to bear in mind is that the response, which was not a bad response, was only 13% and actually the NAO says that their respondents are likely to be the people who are most settled in terms of their life after the Service, so already it may be a slightly skewed sample that we are looking at. If I could draw your attention to figure 11 on page 25 which shows what has happened to that 32% who did not own their home prior to leaving. This is two years out after leaving the Service and it shows that a third are still living with relatives, one is inclined to say, and only 23% of those who did not own their own initially own their own home. Do you not find those figures a little worrying?

  Sir Bill Jeffrey: I certainly take the point that we should be cautious about over-interpreting this survey for the reason you give. The 61% I gave of those who owned their own home at the point of discharge was, I think, an MoD figure and the NAO survey found 68%, which rather bears out what you say. It is very hard to judge whether roughly a quarter acquiring their own home within a couple of years of leaving, given the population that we are dealing with, is a good result. We would be aiming higher obviously.

  Mr Baker: We have to bear in mind that a very substantial number of these people leave the Forces at a very young age, at an age where in typical society you would not expect them to be able to get on to the housing market.

  Q16  Keith Hill: But the sample is a cross-section of all those who have left.

  Mr Baker: Yes.

  Q17  Keith Hill: The number of Early Leavers amongst the respondents, I seem to recall, was about 10% of the overall sample, so actually most of the people who were being surveyed here were people who on the whole had done the appropriate amount of service in any circumstances.

  Mr Baker: An Early Leaver is defined as earlier than four years.[1] Looking at people who join the Services at 16 or 17 sometimes you can be not an Early Leaver and leaving at the age of 21 or 22, which is still substantially in advance of the likelihood of owning a house taken across the population as a whole.

  Q18 Keith Hill: I take your point there, but if you look at figure 31, which is in Appendix Six, it is perfectly clear that there is a very clear variation in who actually is the owner-occupier under Service personnel because figure 31 indicates that 75% of other ranks did not own their home prior to leaving the Service. 75% is very high, would you not say, who were not owner-occupiers? If you look then at figure 33 it suggests that of those other ranks two years out about a third of them now own their own home which kind of fits in anyway with what we see in figure 11. If my calculations are correct, what it means is that 50% of other ranks do not own their own home after two years. If you look at the national figures of home ownership, over 70% of households in the UK now are owner-occupiers, so ex-Service personnel do not really seem to be owner-occupiers on the same scale as the rest of the population. Is there any explanation for this?

  Sir Bill Jeffrey: The only explanation I can think of is the one that Chris Baker has given, which is that because of the point in people's lives when they tend to leave the Armed Forces, it is not as disproportionately young as the Early Leaver population but it is a disproportionately young population. I have a family member living in my own home in his mid-20s with a perfectly good job.

  Q19  Keith Hill: He says with a note of frustration.

  Sir Bill Jeffrey: Not in the slightest, it is a pleasure. I do not think we are, as it were, sitting here defending that percentage. Obviously it would be better if it was higher. We are talking about events that take place in a period after people have left our employment. All we can be expected to do is to give them as good a start as possible. On the whole, without being defensive about it, this Report suggests that we are quite successful in that. If you look at employment outcomes rather than housing outcomes, in my view we are remarkably successful.



1   Note by witness: Early Service Leavers also include those who are compulsorily discharged under circumstances incurring loss of normal time-accrued resettlement entitlement. Back


 
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