Increase for military officers

Senior military officers are to receive pay rises of about 3 per cent, in spite of Labour's call for their pay to be frozen, and for the first time a small element of "performance related pay" is to be built in.

The biggest rises go to the lower ranks, who get an average rise of about 6 per cent. Military sources last night said they were pleased with the pay deal. For the first time, all sergeants will be on more than pounds 20,000 a year. A major-general, who could command a division of up to 25,000 troops in action or run a large military depot, currently earns pounds 66,290 a year. From 1 April he will get pounds 67,616 and from December between pounds 68,115 and pounds 69,605, depending on the job and how well he does it.

When the current Chief of Defence Staff retires in April there will be no more "Five star" officers - Field Marshals, Admirals of the Fleet or Marshals of the RAF.

However, the new Chief of Defence Staff, General Sir Charles Guthrie, will continue to be paid a higher salary than anyone else, currently pounds 125,850.