"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.
A shake-up of Armed Forces pay across all three Services has been announced by the Defence Secretary.
A new model has been created which aims to simplify and modernise pay for Armed Forces personnel, with the reforms coming into place as of April this year.
The current pay system, introduced in 2001, was the first integrated ‘tri-service’ pay system - a major advance at the time.
But it's been criticised in recent times as being overly complex, with some service personnel expressing dissatisfaction at shortcomings and inefficiencies.
The reforms to core pay will apply to all Armed Forces regulars and reservists up to the ranks of Commodore, Brigadier and Air Commodore, except specialists on bespoke pay scales.
Defence Secretary Michael Fallon said:
Rank will continue to be the main determinant of pay and incremental progression will remain a key feature of the new system.
Other ranks will now be put into four different categories.
Supplement 1 covers enabling and support trades, Supplement 2 includes fighting forces like the Army Infantry, Supplement 3 includes technical trades of high skill, while Supplement 4 will only apply to Army Air Corps pilots.
The model dramatically reduces the number of possible core pay scenarios from 128. The Ministry of Defence argues that this will provide a pay system that will be easier to understand for service personnel, allowing individuals to more accurately predict their future pay.
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It added that the new system will be much simpler, and also fairer because it will end ‘flip-flopping’ where some personnel found their pay dropped as they were promoted.
The reforms, which have been praised by the heads of all three Services, will include pay protection to ensure that no service personnel take a pay cut on transition to the new model.
Armed Forces Minister Penny Mordaunt, meanwhile, gave her thoughts on the reforms to Forces TV:
Chief of the Defence Staff, General Sir Nicholas Houghton, 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."
The shake up only applies to core pay.
Brigadier Chris Ghika is Director Army Personnel Capability speaks to BFBS' Steve Britton about some of the unpopular elements of the old model that will no longer appear in the new one: