Charges & Allowances
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27 Apr - SFA Charges 2012/13
SFA charges announced in the AFPRB 2012
Disturbance Allowance
SFA Charges 2012/13
Click here to download the SFA charges for 2012/13.
Garage and Car Port Charges (£ Daily) - England, Scotland, Wales, NI and Overseas
Standard Purpose Built Garage - £0.90
Substandard and Below Standard Garage - £0.56
Standard Purpose Built Car Port - £0.45
Substandard Purpose Built Car Port - £0.28
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SFA charges announced in the AFPRB 2012
It has recently been announced that there will be a continuation of a pay freeze for personnel earning over £21,000 per year but that there will be an increase in charges for accommodation. These, combined with a reduction in allowances and the potential loss of Child Benefit for many families next year will see a marked reduction in income for many at a time when the cost of living is increasing.
Below is an excerpt from the Armed Forces Pay Review Body’s report outlining the reasons behind the increase in accommodation charges.
Approach to recommendations
4.17 Our long term approach has been to recommend rental charges that are broadly comparable with the costs faced by civilians, but with a discount which we feel recognises the disadvantages of living in Service accommodation, such as choice, restrictions on decoration and quality of service. We considered at some length whether we should recommend no increase in charges, in light of the public sector pay freeze and continuing change and uncertainty faced by the Armed Forces. We noted the pressures on disposable income from a number of factors and the persistently high level of inflation throughout 2011. However, we also noted that wider public sector workers and the population at large are facing many of the same pressures including higher costs in the rental market, and acute affordability pressures.
4.18 On balance, we consider it to be appropriate and consistent to continue with our normal methodology of recommending an increase in line with the rental component of RPI in the year to November 2011. We recommend an increase to grade 1 for charge accommodation of 2.9 per cent. This should ensure that the increase for Service personnel is, on average, similar to that experienced by civilians, and that the difference between civilian and military housing costs remains steady. It is worth noting that the full increase will apply to only the 10 per cent of UK SFA which is grade 1 for charge and to 23 per cent of SLA. We are aware that our tiered approach to recommendations increases the differential between MOD’s rental receipts and the amount it pays to lease the housing stock, given the mismatch between the two grading systems.
4.19 MOD’s evidence suggested that we move away from our tiered approach in applying increases and that any increase to rental charges should be applied equally to all grades of accommodation. There are many SFA units where the grade for charge is lower than the standard for condition. The full increase is therefore applied to a small proportion of the housing stock. However, MOD has to pay the full increase agreed under the BURR process on all of the leased stock.
4.20 We do have some concerns about the unintended consequences of there being no increase in grade 4 rental charges for well over a decade. For example, for personnel in grade 4 SLA the rent charged equates to only 1 per cent of earnings compared to 3-5 per cent for those living in grade 1 SLA. MOD and the Service Families’ Federations believe this policy might encourage personnel to seek out or remain in lower quality accommodation. While we are retaining the same tiered approach to our recommendations this year, we may revisit this in future Reports.
4.21 We understand the financial pressures faced by MOD, but the current uncertainties for personnel and their families are such that we would introduce a change only if there were a clear and compelling rationale. The evidence we received from MOD was driven by the perceived need to reduce the difference between MOD’s spending on Service accommodation and its rental receipts. It did not give sufficient consideration to the human aspect of housing or the role of accommodation in the overall package for personnel. We remain open to reviewing our methodology in the future if MOD is able to provide a strong, evidence-based case and sound grading systems. However, we would expect any significant move towards market rents to be accompanied by improvements to standards of service on issues such as allocation and maintenance, which are taken as given in the market sector.
Service Family Accommodation rental charges
The report recommended the following charges:
- SFA grade 1 rental charges increase by 2.9 per cent, with smaller graduated increases to grade 2 and grade 3 and no increase for grade 4.
- water and sewerage – charges for all SFA increase by £18.25 to between £369 and £398 a year (4.8 to 5.2 per cent)
- furniture hire – SFA rates to be increased by 2.9 per cent
- garage rent – the annual charge for standard garages and standard carports be increased by 2.9 per cent. Zero increase to substandard garages and sub-standard carports.
So what does this mean to your pocket?
Below is a table showing the new charge and the difference between the old and new in brackets for a furnished SFA. This table shows the full impact if you are in SFA and fully furnished – if you are part or unfurnished then the increase from last year will be less than shown here.
Disturbance Allowance
Does Disturbance Allowance cover the cost of moving house?
See how much your move cost by filling in The AFF Moving Budget form. It’s just for your own information but feel free to e-mail us your completed form. Your feedback will help us get an idea of whether Disturbance Allowance is indeed keeping up with the cost of moving house.
Disturbance Allowance Rates (from Apr 11):
SFA/SSFA £966
SLA/SSSA £83
Privately Owned £966
Privately Rented £966
Child Element £75
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