Written question asked by Willie Rennie (Liberal Democrat) on Wednesday, 3 September 2008, in the House of Commons. It was due for an answer on Wednesday, 10 September 2008. It was answered by Derek Twigg (Labour) on Monday, 29 September 2008 on behalf of the Ministry of Defence.

Armed Forces: Housing

Question: To ask the Secretary of State for Defence what steps his Department is taking to assist armed services personnel to meet housing costs; and if he will make a statement.

Answer: [holding answer 10 September 2008]: It is a condition of service that Regular Service personnel are provided with accommodation. The charges for this accommodation are set by the independent Armed Forces Pay Review Body, with a discount that reflects the disadvantages of living in such accommodation e.g. lack of choice and lack of security of tenure on leaving the armed forces. These charges are deliberately set lower than those readily available in the private sector.The Ministry of Defence (MOD) encourages service personnel to prepare for their return to civilian life during their careers by purchasing their own homes. To help in this area, a Long Service Advance of Pay (LSAP) is available which currently consists of an interest-free loan of up to £8,500.In July 2008 MOD published 'The Nation's Commitment: Cross-Government Support to our Armed Forces, their Families and Veterans' (Command Paper Cm 7424). Paragraph 2.13 in particular explains more about the Prime Minister's announcement on 19 March 2008 about plans to launch a new initiative on home ownership for service personnel, which will be a pilot scheme tailored to their particular needs.

Secondary information