The Ministry of Defence yesterday announced the conclusion of a review into the provision of the Continuity of Education Allowance (CEA).
According to an MoD source the allowance provides funds to ensure that children of Service personnel receive continuous education which would be impossible if they accompanied their serving parent or parents on postings in the UK or overseas.
The review confirms that CEA contributes to operational effectiveness by supporting family mobility and accompanied service and therefore there will be no changes to the key principles of CEA:
Those key principles are:
• Current rates for parental contributions (a minimum of 10% of the school’s fees) will be maintained;
• Parents will continue to be able to choose the school that is most appropriate for their children from the wide range of independent and state schools on the MOD Accredited Schools Database;
• There will be no change to the allowances for Special Needs, North Wales and Day School provision.
However, some significant changes to the policy regulations will be introduced. There will be one new restriction on the age range for eligible children which will mean that initial claims for year 12 and 13 children who have not previously been in continuous receipt of CEA will no longer be permitted. The MOD will also seek to establish a central payment system so that CEA is paid directly to the school rather than to the claimant.
In addition, parents will be encouraged to use state boarding schools which provide continuity of education at a lower cost to both the MOD and to parents as the state already funds the tuition element of costs. The MOD will continue to simplify CEA policy to ensure that its purpose and procedures are well understood.
Armed Forces Minister Nick Harvey said: “The Government is strongly committed to supporting Service personnel and their families, demonstrated by its promise to enshrine the Military Covenant in law; and we will ensure that the interests of their children are fully protected. This review found that the Continuity of Education Allowance makes a key contribution to operational effectiveness. Therefore no changes have been made to the principles of the system. However, the review did identify room for further efficiencies to be made.”
Minister Harvey promised: “We will move forward by improving governance and payment arrangements and by tightening the rules whilst continuing to look at the best ways to support Service personnel and families.”
Whilst Chief of the Defence Staff General Sir David Richards said: “This is a good outcome. I am pleased that we have been able to maintain CEA for those who need it, while improving value for money. The future terms and conditions of service must deliver a package that is fair both to those who have more settled careers and those who must still be mobile and wish to be accompanied.”
The review of CEA was originally announced by the Secretary of State as part of the Strategic Defence and Security Review in October 2010. In December 2010, the MOD announced changes to CEA rules with the aim of saving more than £20m per year. The rates of CEA were not altered, but the rules on eligibility for the allowances were tightened. These changes became effective from 1 April 2011.
At the same time in December 2010, the Armed Forces Minister Nick Harvey MP announced a separate review of CEA to consider the fundamental rationale for the allowance, the justification for the current set of entitlements and to look at alternatives, including less reliance on independent schools.
Service personnel can claim up to £6074 per child per term but must pay at least 10% of the school fees. Separate arrangements are in place for those children with Special Educational Needs. Around £180m a year is spent on CEA to support the children of around 5,500 personnel