Armed forces to receive 3.7% pay rise in attempt to boost recruitment

Above-inflation pay rises of at least 3.7 per cent for servicemen and women were announced last night by the Defence Secretary, Geoff Hoon.

The increases from April, in line with a recommendation from the Armed Forces Pay Review Body, are intended to combat a recruitment crisis facing all three services.

Starting rates for new recruits will also be raised by 12.5 per cent for under-17s and 4.2 per cent for adults.

Higher rises will go to the lowest-paid privates and lance corporals, who will receive a 4.2 per cent increase in basic pay from £12,071 to £12,578, and to captains and majors, who have also been given a 4.2 per cent rise. The Ministry of Defence also announced a boost to a "golden handcuffs" scheme aimed at encouraging air crew to stay on in the RAF and not to go into the private sector.

They will now be entitled to a lump sum of £30,000 if they agree five years before they are entitled to collect a pension to sign on for a further five years.

Mr Hoon said: "Britain's armed forces have had an exceptionally busy year, both at home and abroad. From foot-and-mouth to Macedonia to Afghanistan, our servicemen and women have never failed to achieve what we have asked of them. This year's pay award is nothing less than they deserve for their tireless work as a force for good."

Recent figures have revealed that manpower across the forces is almost 11,000 below the target level. Worst affected is the Army, whose numbers have slipped below 100,000 – its lowest since the 1820s. The Navy is now about 2,000 short of its target of 40,000 trained personnel and the RAF is 2,000 below the 51,500 goal.

The Ministry of Defence has has been struggling with big deployments to Northern Ireland, the Middle East, the Balkans, west Africa andAfghanistan.

Yesterday's pay rises were slightly above the 3.5 per cent pay award given to teachers and 3.6 per cent for nurses, therapists and other National Health Service staff.