Mark Francois MP: speeches

Speeches

• 17 Mar 2025 · Women’s Changed State Pension Age: Compensation · Hansard source

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  I have had about 100 emails from WASPI women in my constituency. The ombudsman found that there was a case to answer, and recommended five options for compensation, leaning towards option 4. Does my right hon. Friend agree that even if the Government will not grant option 4, they should at least give the WASPI women something?

• 10 Feb 2025 · Armed Forces: Death-in-service Payments · Hansard source

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  The Forces Pension Society has already stated that levying inheritance tax on death-in-service benefits would be wholly counter to the armed forces covenant, and we Conservatives wholly agree. The consultation by His Majesty’s Revenue and Customs on that proposal closed on 22 January. On what day did the MOD submit its response to that key consultation—presumably in defence of service families’ interests—and will the Minister place a copy of that response in the Library?

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  In a moment. Indeed, the Forces Pension Society response to the consultation, which I have here, calls on the Government to do just that. However, having given the Minister what I believe was fair notice in Committee, I raised the topic again with him at the last Defence questions on 6 January—although, in fairness, that was the day the Commons returned from Christmas recess. When I asked him what the Government had done about it, unfortunately he did not deliver a particularly convincing reply. I give way to the hon. Gentleman.

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  I will not read them out, but the point, in terms of retention, is that this is not just an officer’s benefit. It is a very important benefit for senior non-commissioned officers. If the costs become unsustainable, there is a risk that they will leave the armed forces, and that someone whom it may have cost the Crown over £1 million to train will leave, which would very much be a false economy.

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  On Second Reading, we began by announcing that, with regard to the Bill, our aim was to be a critical friend, and that remains our aim today, although I feel that, at one point, we may become very critical. May I begin, however, in a bipartisan spirit by pointing out that, even though we are here today to debate the extremely important matter of the welfare of our armed forces, so far at least, as pointed out by the hon. Member for Dunfermline and Dollar (Graeme Downie), the SNP has not made a single contribution to this discussion—and neither for the record has Reform. And in both cases, that is a shame. We debated this Bill in Committee in December, and following that I should like to speak to amendments 8 to 11, plus new clause 2, in my name and the name of my hon. Friend the Member for South Suffolk (James Cartlidge), who is in his place. First, though, let me commend the Chair of the Defence Committee for his speech. For the record, he is having a good run at the moment. He has had three Select Committee reports, on which he has been allowed to make statements, and the Committee has only been up and running for a few weeks, so that is a very fast start. I shall be relatively brief in my remarks on amendment 8, because we covered this issue in some detail in Committee. Moreover, my hon. and gallant Friend the Member for Spelthorne (Lincoln Jopp), as a former commanding officer of the Scots Guards, made some incisive points about the amendment, not least in relation to the interaction between the proposed Armed Forces Commissioner and the chain of command. That point was also touched on by the hon. and gallant Member for Leyton and Wanstead (Mr Bailey), before he was inexplicably distracted. Suffice it to say for now, it was mentioned numerous times across all parts of the Committee that, in addition to demonstrating their independence, the Armed Forces Commissioner would have to work hard in this new role to win the trust of armed forces personnel and their families. Indeed, during the public evidence session, General Sir Andrew Gregory, the controller of SSAFA, made the very constructive suggestion that the commissioner would need to undertake a lot of visits to armed forces locations to meet both personnel and their families as part of that trust-building process. When I was an MOD Minister, I tried to make a lot of visits, too, so I can well understand the merits of the general’s suggestion. According to the Government’s timetable, the new Armed Forces Commissioner is likely to be up and running sometime in 2026. I hope that whoever takes up the post will be minded to listen to General Gregory’s sage advice. Turning to amendment 9, we raised pensions and death-in-service benefits in Committee. As I shall go on to explain, we were determined to raise this issue on Report, not least because it is both important and unresolved. I would like to look at one aspect of military pensions and then at death-in-service benefits specifically. It is interesting that we lack some important statistics about military veterans who have left the armed forces and then draw their service pension. For instance, we have an armed forces continuous attitude survey, or AFCAS, which is an annual exercise to tell us the attitudes of armed forces personnel on everything from housing repairs to overseas deployments. Similarly, we have a reserves continuous attitude survey, or RESCAS, to ask questions about the opinions of our much-valued reserves, and we also have a families continuous attitude survey, or FAMCAS, to seek the views of service families. However, there is no official veterans continuous attitude survey—no VETCAS, as it were—to tell us the opinions of veterans. However, a number of veterans charities gather data in this area outside the direct responsibility of the Ministry of Defence. I recently tabled a written parliamentary question to MOD Ministers about their estimate of the number of veterans who would be affected by the recent decision to seriously restrict winter fuel allowance availability. The response that came back from the Department around a fortnight ago was, in essence, that it did not have the data. I humbly suggest that someone needs to try to collate that data as soon as possible, because I am not sure the public would be pleased to learn that many veterans—although we cannot say precisely how many—could lose their winter fuel allowance as a result of the Chancellor’s Budget. Indeed, the Royal British Legion, which knows a thing or two about veterans, has expressed concern that the Government have “not identified how this policy change will impact older veterans”. A RBL spokesman recently said: “A large number of older people have served in the UK Armed Forces, many of whom face additional heating costs due to caring responsibilities or disability”—

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  When I have finished this point, yes. The Forces Pension Society points out that the system is recoverable because the changes are subject to a consultation and are not currently due to come in until April 2027. Nevertheless, this is still a potentially worrying situation, especially for armed forces families in which parents are in a committed relationship with multiple children but have not, for whatever reason, decided to marry. We were prepared to give the Minister the benefit of the doubt about that in Committee. Indeed, without wishing to be uncharitable, when I raised it he seemed slightly taken aback by the problem. I say that because my suspicion is that when the Treasury came up with this, the Ministry of Defence was blissfully unaware of it. I therefore suggest that MOD Ministers may not be directly at fault, but it is nevertheless their personnel and families who may be affected. Towards the conclusion of the Committee, I strongly suggested to the Armed Forces Minister that he should take this away for discussions with the Treasury, as there will be a consultation exercise on the changes before they come into force in the 2026-27 financial year, with the opportunity to change the policy and avert the problem.

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  Just a second—I am just going to reply to this one. Forgive me, but if my remarks were not in order, we would have been told so by now. Maybe one day, after many years of distinguished service, the hon. Member for Leyton and Wanstead (Mr Bailey) will become a Deputy Speaker of this House, but not today. I will continue, and then I will take the other intervention. We really need to do something about this issue. As the Forces Pension Society has pointed out, it would be totally contrary to the principles of the armed forces covenant—including the principle that armed forces personnel and their families should suffer no disadvantage as a result of their service to the Crown—if this were to go unanswered, and unmarried service widows and their families were to be punished in this way. I thank the hon. Member for North Durham (Luke Akehurst) for being patient.

• 21 Jan 2025 · Armed Forces Commissioner Bill · Hansard source

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  First, that is a matter for the Chair. Secondly, I presume that, if the amendment were not in order, it would not have been selected. This is not Treasury questions, so I do not propose to reprise the whole debate about the winter fuel allowance; I will save hon. Members from that agony. Nevertheless, I hope the Minister has taken the point on board. Perhaps when he winds up, he could say something—anything—about how many veterans the Government think are likely to be affected by the restriction of winter fuel allowance and whether he thinks that that is the right thing to do, not least in the spirit of the armed forces covenant. I turn to the specific matter of death-in-service benefits—a topic that, as the hon. Member for Dunfermline and Dollar will remember, we raised in Committee last month. As ably pointed out by the Forces Pension Society, which I hope the House will accept is very much the gold-standard organisation on any matter relating to armed forces pensions—the clue is in the name—a problem has arisen because of the Government’s proposed changes to inheritance tax as announced by the Chancellor in her Budget of 30 October. In essence, if a member of the armed forces who is in a long-term relationship—and perhaps even has children—but is not married dies while in service, which does not necessarily mean in active operations, the death-in-service benefit that they would normally be entitled to might, under the Government’s proposed changes, become liable for inheritance tax.

• 15 Jan 2025 · Women’s Changed State Pension Age: Compensation · Hansard source

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  I can confirm that my right hon. Friend has campaigned on this issue for a number of years, and not just today. He will know that in July 2022, the Prime Minister—then the Leader of the Opposition—responded to Carol, a WASPI woman who rang BBC Merseyside to raise this issue. The Prime Minister said: “It’s a real injustice, and we need to do something about it”. What does my right hon. Friend think he meant by that?

• 6 Jan 2025 · Armed Forces Commissioner: Appointment · Hansard source

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  During debates on the Bill in Committee I raised the worrying issue that under the Treasury’s proposed inheritance tax changes, service personnel who are unmarried but in a long-term relationship could have their partner’s service benefit taxed should they die while in service. The Forces Pension Society has rightly highlighted that that would be totally contrary to the spirit of the armed forces covenant. Has the Minister yet raised this with the Treasury, as we strongly suggested last month he should, and if so what progress has been made?

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I will try to be brief. This amendment in no way precludes the raising of any of the other issues that the hon. Lady mentioned. It does not say, for instance, that the commissioner can look only at pensions—not at all. However, it does specifically make it clear that the commissioner is empowered to look at pensions, because they kick in, by definition, when armed forces personnel leave the service. Some people might try to argue that pensions are not a general service welfare issue because personnel are no longer serving, but they very much are—not least because, as the Minister will know, they very much affect retention. They might also affect recruitment slightly, but pensions are certainly very important in retention. Sometimes they are the overwhelming reason that people stay in the service, depending on their personal financial circumstances. I see the hon. Lady’s point, but all this is doing is making it very clear, beyond peradventure, that the Armed Forces Commissioner’s remit would extend to pensions. I admit that it also gave us an opportunity to raise this very important issue, which the Forces Pension Society raised with me a little while ago. When I met its representatives, they were genuinely worried about this, and my amendment was an opportunity to put the issue on the table and on the Government’s radar, as it were. That is what I was seeking to achieve.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I thank the hon. Gentleman for his very pithy intervention. He pays me a back-handed compliment. How outrageous that His Majesty’s Opposition should try to raise a difficult issue in the middle of a Bill Committee; if I were to go back through the annals of Hansard down the centuries, I am sure there would be some precedent for that. This was a timely opportunity, if I can put it like that, to table the issue. There is a consultation coming up, and I suspect, looking at his face, that the Minister was not really au fait with this issue—I am not being rude to him—but he is now, and I will be very interested to hear what he has to say. The key point here is that death in service benefits have traditionally been payable if someone dies while in the armed forces or in the service of the Crown, whether or not they were on active service. A person who died back at home with their family would still qualify for the money. Under the armed forces pension scheme, they would still qualify if they had a regular partner. Under the Bill, however, because we are now dealing with the inheritance tax rules, unless the individual is married or in a civil partnership the exemptions do not apply. That is the critical point. I suspect the Ministry of Defence had not picked up on it. The Forces Pension Society, which exists for exactly this kind of eventuality, has done what it says on the tin and raised an issue that could materially affect armed forces pensions. In some ways, I am acting as their factotum this afternoon in tabling the issue.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I think it is. Those who have left the service, are by definition no longer subject to service law; they are subject to the laws of the country like any other civilians, as that is what they have become, albeit they are civilians with the special status of being a veteran, which we should respect. But they are no longer serving in His Majesty’s armed forces. The amendment would allow the commissioner to expand their remit little bit in order to look at pension-related issues, which are something that armed forces personnel regard as part of their general service welfare. When they are taking that stick or twist decision, weighing up the pluses and minuses of whether to stay or leave—particularly if they have been in the service for some years and have accumulated a reasonable pension pot—that is definitely something that they will take into account.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I thank the Minister for his compliment about my “artful cheekiness”. I am rather hoping that the Whip will have written that down. Again, quoting from Larisa Brown’s article, “It is understood that inheritance tax would apply to service personnel who are killed while off duty, for example if they are driving to and from work.” She also includes a comment from a spokesman from the Forces Pension Society, who said they believed it was an “unintended consequence”— we are trying to be fair to the Government—but added, “For the military, death is an occupational risk, so we also believe this is a breach of the armed forces covenant, which says that service personnel should not be disadvantaged by virtue of their service.” I understand what the Minister has said, and I know there is a technical consultation, but this is important not just to us and to the Forces Pension Society; it will genuinely concern armed forces personnel and their families.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I beg to move amendment 12, in clause 4, page 2, line 35, at end insert— “(2A) A ‘general service welfare matter’ may include issues relating to the provision of pensions and other related benefits to serving and former members of the armed forces.” This amendment would enable the Commissioner to include matters relating to pensions and other such benefits in their investigations of general service welfare matters. It is a pleasure to serve under your chairmanship, Mr Betts. I hope we shall not inconvenience you too much with regard to your journey back. The purpose of amendment 12 is to confirm in the Bill that pensions would be among the topics that the commissioner can investigate under the heading of “general service welfare matters”. This is obviously a matter of keen interest to service personnel and their families, and having good pension provision for serving in the armed forces has always been an aid to both recruitment and particularly retention, especially for non-commissioned officers and officers as they progress in their careers. I have often felt—and I include the time when I served as a Minister in the Ministry of Defence—that we have not really done enough to successfully market the value of military pensions as part of the wider service offer in order to convince people to join and then remain in the armed forces. In my experience, even many armed forces personnel did not appreciate that they had one of the few pension schemes across the entire public sector that was effectively non-contributory. In other words, their employer paid a contribution into their pensions, but they did not. In comparison, the last time I checked, most serving police officers pay something like 14% of their salary into their pension, whereas serving personnel still do not have to pay anything. Historically, the pension has always been—certainly as people become more experienced, get older and think more about their pension provision, much like the rest of the population—a vital tool in keeping people in. I would like to raise with the Minister one particularly pressing pensions matter, which provides a classic example of the sort of issue that the Armed Forces Commissioner should be empowered to investigate. In essence, it relates to the potential liability for inheritance tax, relating to death in service lump sum payments. This follows on, unfortunately, from the IHT changes announced in the Budget. I will refer to a briefing that was recently provided to me by Major General Neil Marshall OBE, the chief executive of the Forces Pension Society, which, I hope the Minister and Committee will accept, is the absolute gold standard expert on any matter relating to forces pensions—the sort of Office for Budget Responsibility of armed forces pensions. The AFP note summarises the issue as follows: “Death in service benefits affect those who die prematurely. While benefits pay to spouses or civil partners will be unaffected by IHT, we understand that under the Government’s proposals, death in service lump sum payments for service personnel who die in the service and are not married or in a civil partnership would be liable to IHT. This would lead to military personnel being disadvantaged compared with their civilian counterparts”, not least because their civilian counterparts would be “able to place such benefits in trust and therefore outside of the deceased’s estate.” The note continues to say that the introduction of the armed forces pension scheme 2005 and subsequently the armed forces pension scheme 2015—AFPS 05 and AFPS 15, as they are colloquially known— “saw eligible partners recognised as dependents and therefore eligible for benefits.” Under AFPS 05 and AFPS 15, personnel do not need to be married; they need to have an established partner. The note continues: “This was in addition to married couples and those in civil partnerships. This was a welcome reflection of societal changes over the past 30 years or so; introducing a potential inheritance tax charge on death in service benefits for those military people who are not married or in a civil partnership is at odds with the extant policy.” To put in this in layman’s English, because in my experience anything to do with pensions does tend to be quite complicated: if Corporal Thomas Atkins of the 1st Battalion the Lone Shire Regiment were walking down his high street tomorrow—not on active service—and unfortunately dropped dead of a heart attack, even if he had a long-term partner and perhaps three children but was not married or in a civil partnership with that partner, then his family would be liable for a potential inheritance tax charge on his death in service benefit. Not only is there the risk of the financial penalty—I will come on to a case study in a moment to illustrate the dilemma—but the bureaucracy could result in payouts from the estate being delayed while the liability for IHT is being calculated. The Forces Pension Society summarise the issue in its very good briefing note as follows: “At a time of extreme vulnerability, these lump sums need to be paid promptly, as they currently are. If death in service benefits become subject to IHT there will be a delay to the benefit being paid both while the estate is assessed for IHT and while the amount of IHT attributable to the DIS [death in service] benefit is assessed and the scheme administrator (Veterans UK) pays the tax charge.” As the briefing note then goes on to explain: “Many who would not previously have been caught with an IHT liability will find themselves in a very bureaucratic process that will slow down the already lengthy process of sorting out the financial affairs of an individual at what is a very difficult time.” The Forces Pension Society gave several examples of how this could affect personnel in practice. For the sake of brevity, I will just give one, which I hope is sufficient to illustrate the point. Take the case of an OR-9 equivalent—a senior warrant officer at the top of the non-commissioned rank structure. This individual has a partner to whom they are unmarried, and on death leaves an estate worth £400,000 and death in service benefits of £248,292—four times their salary of £62,000. They would pay 40% inheritance tax on the non-pension assets, resulting in an IHT liability of £30,000, but after April 2027, if the DIS benefits were included in the estate, that would increase the estate’s value to £648,292. The IHT liability will therefore increase accordingly to £129,316. That represents an increase of around 330%. In fairness, we on the Conservative Benches suspect that this is an example of the law of unintended consequences in action. We do not believe that the Government deliberately brought in these changes with the specific intention of targeting armed forces personnel. There is a debate about farmers and other groups in society, but I am focusing today on armed forces personnel and their families. To be clear, we are not saying that the Government did this deliberately in order to damage those people’s interests. Nevertheless, the default position is that they would suffer in the ways I have just outlined, unless something is done. Indeed, the Forces Pension Society summed up the problem as follows: “We believe the Government has made an error and would not knowingly implement a policy that runs counter to the spirit of the armed forces covenant. The situation is recoverable should they act now.” We on the Conservative Benches support that plea. I hope that when the Minister replies, he will assure us that, following the consultation on these proposals—which will be overseen by His Majesty’s Treasury, not by the MOD, because it is a consultation on the IHT changes in general—he is confident that armed forces personnel and their families will be exempted from any potential inheritance tax liabilities on death in service payments, whether or not those armed forces personnel die in active service. I hope that I have managed to explain that in terms that the Committee can follow.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I will in a moment. I hope that, as an act of good will, the Minister will be minded to accept the amendment to remove any doubt about the ability of the Armed Forces Commissioner—who, as we heard this morning, will end up being appointed in early 2026, a year before these proposed changes are due to come into effect—to look in detail at this issue. Given the rightful concerns of the Forces Pension Society, I must tell the Minister that I am minded to press the amendment to a Division if he does not do the right thing. Having hopefully explained what is admittedly a slightly complex issue, I very much look forward to the Minister’s response, but before I sit down, I will gladly take the hon. Lady’s intervention.

• 10 Dec 2024 · Armed Forces Commissioner Bill (Second sitting) · Hansard source

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  Q You mentioned that you have 38 years of service, so you would be perfectly human to be thinking about pensions. There is very little reference to pensions in the Bill, but you could argue that if you are looking at issues of general service welfare, what happens to a service person’s pension is very important to them and their family. Do you think it a weakness in the Bill that it does not say much specifically about pensions? Would you like to see that specifically included? Col. Darren Doherty: It is not an area of expertise for me. I think the provision of pensions and advice on pensions—this is from my personal experience of having just gone through it—is adequate, with the support of great institutions such as the Forces Pension Society as an additional advising actor. I am not sure that it is something that would require specifically laying out in the Bill. That is my own opinion.

• 10 Dec 2024 · Armed Forces Commissioner Bill (Second sitting) · Hansard source

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  Q Thank you. I think we all know that the Forces Pension Society is the Office for Budget Responsibility, if you like, of all military pensions issues, but as it is not here this afternoon, so forgive the question to you. Can we switch to the Royal Air Force, please? Air Commodore Harper, you are probably too young to remember, sir, but in the cold war there was what was called the tactical evaluation process, or TACEVAL. It was a bit like a military Ofsted, and a team could turn up at an airbase—for example, RAF Brüggen in West Germany—say that world war three had just broken out and basically put the station through its paces for several days, and they would get an Ofsted-like score at the end. It is not quite as severe as that, but the Armed Forces Commissioner has an Ofsted-like capability under the Bill to turn up unannounced, certainly within the UK; it is more complicated if it is abroad. Do you think that that power will be valuable in holding people to account and concentrating minds, and how often do you think the commissioner should use it? Air Commodore Simon Harper: I am old enough to recall TACEVAL, sir, and was part of that way back in the late 1980s.

• 18 Nov 2024 · Armed Forces Commissioner Bill · Hansard source

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  When the Bill goes into Committee next month we shall be able to explore these issues in more detail, but—particularly for the benefit of the Royal British Legion and Poppyscotland—will the Minister, before he sits down, update the House on what point we have reached in respect of the national veterans commissioner?