Armed Forces' Pay Review Body (AFPRB) - Review of the X-Factor

2. AFPRB provides independent advice to the Prime Minister and the Secretary of State for Defence on the remuneration and charges for Armed Forces' personnel. In reaching its recommendations, AFPRB takes account of: the need to recruit, retain and motivate suitably able and qualified people taking account of the particular circumstances of Service life; Government policies; the MoD's budget; and the Government's inflation target. It must also consider the need for the pay of the Armed Forces to be broadly comparable with pay levels in civilian life. 3. X-Factor is a pensionable addition to basic military pay intended to reflect the disadvantage in conditions of service experienced by members of the Armed Forces compared with civilians; it is currently set at 14.5 per cent. X-Factor takes account of a range of components, but is not linked to mechanistic formulae. The rate tapers for more senior Officers (Colonel equivalent and above) as it was felt that those personnel were less affected by some aspects of the X-Factor. In addition, parts of AFPRB's remit group are entitled to lower levels of X-Factor, such as Reserves and Military Provost Guard Service. AFPRB is responsible for the structural aspects of X-Factor including its make-up, application and level. It is reviewed every five years unless AFPRB decides earlier review is appropriate. 7. The aim of this project is to inform AFPRB's review of the X-Factor in 2017, ahead of its report in 2018. The project will provide an assessment of the X-Factor components as they relate to the civilian sector. Data relating to the military sector will be collected and assessed elsewhere and will not form part of this project. The two sets of data will be presented to AFPRB to inform their review. 8. The objectives of this exercise are to: • Identify and provide quantitative data for the civilian sector relating to each of component factors. Data to cover the period from 2012-2017; • Identify credible alternative data sources as a contingency in case those used previously are no longer available/out of date; • Advise OME of appropriate sources of additional or alternative qualitative data; • Provide OME with an analysis of these data, as they relate to the civilian sector, an assessment of how they have changed since 2012, and an assessment of which components are the most highly valued in the civilian sector; • Provide OME with an assessment of which of these data sources are likely to be available for use in future reviews of X-Factor.