To ask the Secretary of State for Defence what the percentage increase in (a) the rate of inflation and (b) service pay in (i) real and (ii) nominal terms was between 2007 and 2008. (211505)

The percentage increase in the consumer prices index for the first quarter of 2008 compared with the first quarter of 2007 was 2.4 per cent.

In February 2008, the Government accepted in full the Armed Forces Pay Review Body recommendations of a nominal pay rise of 2.6 per cent. for all servicemen and women.

This increase was implemented from 1 April 2008 and will be paid throughout the 2008-09 financial year. As such, the calculation of real increase should be based on financial years. The inflation rate for 2008-09 is not yet known and hence it is not yet possible to calculate the real increase between the financial years 2008-09 and 2007-08.