£8,000 incentive announced for British Army privates and lance corporals

The Defence Secretary has announced an £8,000 incentive payment for the British Army's lowest ranks, which could cost the MOD up to £96m.

John Healey said the bounty payments would begin in January 2025 and be made available to personnel who have served for four years.

The scheme, which could benefit up to 4,000 soldiers each year over the next three years, is not open to those who serve in the Royal Navy or Royal Air Force.

• HMS Albion and Bulwark to be axed as part of Healey's cost-cutting drive
• Military training aims to maximise effectiveness, but is it minimising fatal accidents risk?
• Freezing cold and fierce training: Young Army recruits learn fieldcraft skills

To receive the £8,000 payment, eligible personnel must serve for at least another three years.

In a letter seen by BFBS Forces News, Lieutenant General David Eastman, the Deputy Chief of the General Staff, told personnel he was "delighted" with the announcement. 

"This financial incentive is expected to be open to over 12,000 SP [serving personnel] over the next three years," he said.

"The Retention Payment will retain personnel entering a critical stage in their career, where Voluntary Outflow is higher than at any other point, and it will stabilise the workforce to ensure we have sufficient talent to feed the structure.

"There will be an online application process to make it as easy as possible for those eligible to apply."

The scheme was welcomed by some personnel, who expressed their hope that a similar offer might be made to the other services too.

But others questioned why the Government's retention offer was being made to junior soldiers rather than senior.

"Who is actually going to be around to train, mentor and coach these Ptes and LCpls we are trying to retain?" one person asked.

Other incentive payments were also announced by the Defence Secretary for a cohort of tri-service aircraft engineers.

From April 2025, those eligible – personnel who sign up for an additional three years of service – will be entitled to a £30,000 payment, which will be open to around 5,000 personnel in total.

Mr Healey made the announcements in the House of Commons after unveiling a series of cost-saving measures.

A number of Royal Navy ships, including HMS Albion and HMS Bulwark, plus helicopters and drones are all being decommissioned as part of the plans.