With the Ministry of Defence cutting the size of the armed forces, the UK will have to rely much more heavily on TA reserves in future, with plans to increase the number of battle-ready reservists from 20,000 to 30,000 by 2018.
However, the TA is suffering recruitment problems, as some employers are reluctant to hire reservists who may be deployed overseas at short notice or have to take time off for training.
At the moment, members of the Territorial Army and other reserve forces have a minimum commitment of 27 training days a year. This often includes a two-week period of continuous training often with full-time soldiers. They typically train one night a week and spend one weekend away each month.
When deployed they earn similar wages to regular military staff and they also receive an annual bonus known as a “bounty” worth nearly £1,600 for those who have served for more than five years and employers are obliged to keep a reservist’s job open if they are serving a tour.
Mr Hammond has committed £1.8bn to ensure that reserves get decent equipment, train overseas and work alongside regulars. There will also be a new limit on the length of service most reserves will need to commit to, which is likely to be one six-month period over five years, which will help employers to plan.
The Defence Secretary wants to work with employers and in a green paper published later this month will propose the idea of introducing tax incentives for firms that let their staff experience military service.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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