Operational Allowance increase - details confirmed

Defence Secretary Liam Fox confirmed the details of the Operational Allowance increase, in a written statement to Parliament on 14 Jun 2010. The increase has to be met within the MoD's core budget.

"... The Prime Minister has recently announced during his visit to Afghanistan the doubling of the Operational Allowance which we pay to our Armed Forces engaged in the most demanding areas of conflict. In doing so we are fulfilling a key commitment to our Armed Forces in our Programme for Government.

"The tax-free Operational Allowance will increase from £14.51 per day to £29.02 with effect from 6 May 2010. This will mean for a typical six-month tour payment increasing from £2,640 to £5,281. Payment is in the form of a single lump sum paid on completion of operational service."

Background: BAFF - Operational Allowance increased

Footnote:  In 2006 the BAFF Steering Group and others drew attention to the anomaly whereby British personnel serving overseas on operations had none of the tax concessions available to US and other coalition personnel serving alongside them. The Operational Allowance was introduced in that year, partly in response to such campaigns.

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