Britain's soldiers, sailors and airmen will learn in the new year whether they are to get an above-1% pay rise following the lifting of the public sector pay cap, Defence Secretary Sir Michael Fallon has said.
Following the announcement on Tuesday that police and prison officers are to receive increases above the 1% limit, Sir Michael said he would have "greater flexibility" when it came to setting pay for the military in next year's pay round.
Speaking at the Defence and Security Equipment International (DSEI) arms fair in London's docklands, he said that the Armed Forces Pay Review Body would be able to look at the need to recruit and retain personnel when it came to making its recommendations to ministers.
"The Chancellor has made it clear that the 1% cap is being lifted and that we will have greater flexibility to respond to the recommendations of the Armed Forces Pay Review Body," Sir Michael said.
"It is for that review body to make its recommendations for 2018-19 and it has in its remit the power to consider the very specific recruitment and retention issues that may apply in the armed forces as they do in other highly specialised sectors.
"I look forward to giving evidence to that review body later this year and to receiving its recommendations early in the new year."