Y o u a n d t h e R A F
respectively. In reality the majority of children for whom CEA is claimed, tend to be aged 11 years plus and thus it is unsurprising that the majority of claimants are senior in rank.
One of the frequent questions raised concerns the financial aspect of CEA, particularly the rising cost of school fees. School fees are inevitably subject to market forces and are therefore outside the control of the MOD and it is a fact that costs have risen above the national rate of inflation. To capture accurate cost information, the MOD uses independent commercial data when applying annual increases to CEA and this resulted in an uplift of 6% to CEA in Aug 08. Over the last 3 years (since CEA was introduced) the increase in CEA has been approximately 14% for Junior (Board) or 10% for Junior (Day). As a comparison, Disturbance Allowance for Service Families Accommodation has increased by 5.7% since 2006, in line with Government inflation statistics.
An average claim equates to £210,000 per child
One of the underpinning principles of CEA is that it is considered reasonable for parents to make a financial contribution towards their
children’s school fees. This contribution is set at a minimum of 10% of the fees. To put these costs in context, the MoD currently spends approximately £1billion on allowances per year and CEA accounts for almost £250m ie 25% of this total. The high costs of CEA reflects the fact, not widely known, that CEA is considered by the Inland Revenue to be a benefit in kind and is therefore liable to Income Tax and National Insurance contributions; this is unseen by the Service individual and paid by the MOD on their behalf. Currently the Senior (Board) allowance is £5,412 per term which for an average claim of 7 years equates to approx £210,000 per child (including the Income Tax and NIC element). Accordingly, whilst it is fully acknowledged that increases in boarding school fees have impacted on Service family budgets, MoD has also faced difficult choices regarding increases to other allowances faced with an overall increase to the allowances budget of only 2.5% per annum.
One recent change to CEA policy (contained in JSP 752), is the inclusion of a revised CEA Eligibility Certificate. The aim of the certificate and updated policy is not
to reduce or abolish CEA, but rather the revised certificate aims to improve audit procedures and ensure that the allowance is being appropriately managed and ineligible claims prevented. This will be accomplished by both internal unit audits and external audits by the Children’s Education Advisory Service (CEAS); they hold MOD’s Accredited School Database, which currently includes over 400 education establishments. The underlying principle of CEA remains that family mobility is inherent in claiming the allowance.
In summary CEA is a valuable allowance which helps provide educational stability for the children of those Service personnel who wish to remain mobile and accompanied. It provides another option for parents when deliberating the educational requirements of their children and whilst for some it will not be the solution, for others it provides a positive retention factor. Finally anyone contemplating applying for CEA, or individuals already in receipt of the allowance who have concerns regarding their continuing entitlement, should seek advice from their unit HR.
meth’od (mthd) n.
1. A means or manner of procedure, especially a regular and systematic way of accomplishing something: a simple, uncomplicated but professional method for creating a publication; the method of solving problems.
2. Orderly arrangement of parts or steps to accomplish a publication; random efforts lack Method.
3. The procedures and techniques characteristic of a particular discipline or field of knowledge; printing and publishing methods.
[Middle English, from Latin methodus, publishers to the Ministry of Defence since 1964, publications include: Service Community Official Guides in the United Kingdom and Germany, Regimental Journals, Corps Prospectuses,GarrisonMagazines, AFF Families Journal, Airwaves,HousingMatters,Homeport,Mascot and many others.]
METHOD PUBLISHING have been publishers to the Ministry of Defence since 1964, our publications include: Army and Service Community Official Guides, Regimental Journals, Prospectuses, Garrison Magazines, AFF Families Journal, Airwaves, Housing Matters, Mascot and many others.
METHOD PUBLISHING Sutherland Press House Main Street · Golspie Sutherland KW10 6RA
Telephone · 01408 633871 Facsimile · 01408 633876
www.raf-families-federation.org.uk
Spring 2009
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