New retention payments announced for thousands of Armed Forces personnel

Press release

New retention payments announced for thousands of Armed Forces personnel

The Government has announced that around 5,000 eligible Tri-Service aircraft engineers will receive £30,000 when they sign up for an additional three years of service, whilst a new £8,000 retention payment has been announced for around 12,000 eligible Army Privates and Lance Corporals.

Thousands of Service Personnel are set to receive retention bonuses as the Government takes decisive action to tackle the long-term decline in Armed Forces numbers.

As part of the Government's commitment to renew the nation's contract with those who serve, eligible Tri-service aircraft engineers will be given £30,000 when they sign up for additional three years' of service. From April 2025, this will be applicable to around 5,000 personnel in total.

From January 2025, a new £8,000 retention payment will be awarded to eligible regular Privates and Lance Corporals who have served four years. The payment targets Army Personnel as they enter a critical part of their career, with 12,000 personnel expected to benefit over the next three years.

The announcements come as part of a drive to boost military morale, with additional childcare support announced for families deployed overseas earlier this week.

The retention payments were announced by Defence Secretary John Healey MP in the House of Commons yesterday and follows the Government delivering the largest Armed Forces pay increase for 22 years earlier this year.

It also comes after the Government scrapped 100 outdated policies that block and slow down recruitment, resulting in over 700 applications being reconsidered so far. This week, the Armed Forces Commissioner Bill also passed Second Reading in the House of Commons.

During a visit to Aldershot Garrison today (22 November), Minister for Veterans and People, Alistair Carns met with Army personnel set to benefit from the retention payments.

Minister for Veterans and People, Alistair Carns OBE MC MP said:

This Government is on a drive to boost military morale and we are taking decisive action to stop the long term decline in Armed Forces numbers, having inherited a recruitment and retention crisis - with targets missed every year for the past 14 years.

We will always stand up for our Armed Forces and these retention payments help recognise the extraordinary sacrifices Service Personnel make to defend the UK and keep us all safe.

The new Government previously announced it has slashed recruitment red tape to make the process more straightforward for those wanting to join the military. Through the removal of 100 unnecessary medical policies such as blocking some sufferers of hay fever, eczema, and acne, more than 700 applications have been reviewed.

The Government also awarded an average 6% pay rise for Service Personnel with new recruits receiving a 35% increase - ensuring all members of the Armed Forces receive at least the National Living Wage for the first time.

The Defence Secretary announced earlier this week the expansion of a scheme which helps service families in the UK pay for wraparound childcare to those based abroad. Hundreds of families will now be able to claim up to 20 hours a week of funded before and after school childcare, saving around £3,400 a year.

Also this week, the Armed Forces Commissioner Bill passed Second Reading in the House of Commons. The legislation will deliver a manifesto commitment to establish the first ever Armed Forces Commissioner, a strong, independent voice for Service Personnel and their families with power to hold Government and Single Services to account.

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Published 22 November 2024