Some military personnel and their families have been forced to use food banks as high inflation and rising costs tip members of the Armed Forces into crisis, Sky News can reveal.
An unofficial food bank even exists at a large Royal Air Force base in Lincolnshire, a defence source said.
The voluntary facility at RAF Coningsby – home to Typhoon fast jet squadrons – was set up by an aviator to collect food donations from servicemen and women to support civilians in their local community. But the source claimed it is now being used by RAF personnel too.
Image: The food bank serves civilians in the local community. Pic: Destiny Outreach Coningsby
Internal RAF documents seen by Sky News – as well as interviews with military sources and charities – offer a sense of the wider impact of the cost of living crisis on defence, including:
• The need for a number of service personnel to choose between “food or fuel”, with some unable to afford to drive home from their base to see family
• One aviator, a single mother, was forced to go without a hot meal for four days because she had spent her last money on baby milk formula
• The volume of enquiries to a key charity from or on behalf of military personnel seeking financial support has more than doubled
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• There are individuals who can no longer even afford the price of the subsidised meals at their mess
• A sense of “discontent” at covering for striking public sector workers on better pay deals when the Armed Forces are not permitted to take industrial action themselves
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While the documents referred to the situation inside the RAF, a Royal Navy source and an Army source said personnel in their respective services were also experiencing hardships.
The Royal Navy source said the Ministry of Defence was trying to do more to help, such as support with childcare costs.
“But I suspect more needs to be done,” the source said.
“I’m hearing … stories of sailors unable to head home at weekends or over leave periods due to travel costs, also service personnel using food banks or contacting service charities for assistance with debt management.”
Image: The RAF says the food bank was not set up for its personnel. Pic: Destiny Outreach Coningsby
‘The food bank is popular’
The UK provides its Armed Forces with a range of specific benefits such as access to subsidised housing and meals – as well as fuel grants in a bid to keep the offer to join the Army, Navy and RAF attractive and to retain talent.
The support is also in recognition of the particular hardships and inconveniences of military life, and the fact that anyone who serves has to be prepared to make the ultimate sacrifice.
Yet analysis of morale across the whole of the RAF last year by military chaplains revealed that a limited number of personnel were resorting to food banks in the local areas.
An anonymous quote in the report read: “The food bank is popular.”
This was qualified with a footnote that warned: “Food bank use is reported across a majority of units, but nowhere is yet reporting widespread use”.
It continued: “Single figures per unit of families utilising food banks is a working estimate.”
The airbases RAF Benson in South Oxfordshire and RAF Brize Norton in Oxfordshire “are reporting the highest use of food banks”, according to the footnote in the report, which was entitled Chaplaincy Analysis of Whole Force Morale 2022 and dated 12 January 2023.
Overall, the report found that cost of living pressures as well as failings with military accommodation – such as faulty heating and vermin – were the biggest factors “adversely impacting” morale.
Image: Drop-off points for donations have been set up at RAF Coningsby. Pic: Destiny Outreach Coningsby
Separately, the defence source with knowledge of the food bank at RAF Coningsby claimed that service personnel had been using the facility “extensively”.
Asked how they felt about this, the source said: “Incredibly angry and frustrated that we had got to the point where service personnel had to rely on charitable agencies just to exist.”
A junior non-commissioned officer established the food bank – which has its own Facebook page – a couple of years ago to support the local civilian community, having been involved with this kind of charitable activity while posted overseas in the US.
According to the Facebook page, the food bank is run by a Christian group called Destiny Outreach Coningsby. It says it offers support to people living in the town of Coningsby and the surrounding villages.
“With the cost of living rising, please look out for one another. If you are in need of a food parcel then please contact us,” it said.
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0:34
Michael Gove said it’s ‘concerning’ that military personnel use food banks
An RAF spokesperson made clear that the food bank was not set up by the RAF for its personnel. However, the spokesperson did not offer a comment on the record about the claim that serving aviators were using the facility.
The Ministry of Defence is understood to regard any use of food banks by military personnel as a “private life matter” and does not have any data to support claims of their alleged use.
However, officials at RAF Coningsby raised concern with Air Command last July about “a worrying increase in personnel seeking assistance and support across all welfare pillars as a direct result of the cost of living crisis”.
The warning was contained in a report, dated 22 July 2022, which was entitled Cost of Living Crisis – RAF Coningsby.
It mentioned the establishment of the food bank.
The report drew on information gathered from the experiences of four focus groups of about 150 personnel and families over a one-week period.
It listed several trends, including “pers [personnel] struggling to afford fuel to drive to work; … pers unable to travel home each week and having to stay on unit, reducing morale and wellbeing; real concern for the winter months where electricity and gas costs will further exacerbate the current situation”.
The paper suggested ways the military could offer relief, such as by increasing the rate paid for fuel use. It noted: “Personnel were having to decide whether to buy food or fuel.”
Armed Forces pay ‘an annual gamble’
The documents and defence sources said pay is another factor creating pressure for the military, especially given soaring inflation.
The chaplaincy analysis talked about a “sense of looming discontent” as service personnel may be called upon to fill in for public sector workers who are striking for better wages.
The Armed Forces Pay Review Body, an independent entity, makes a recommendation each year to the government on any pay increases for the military, which the Ministry of Defence draws upon before making its announcement on what the amount will be.
This should happen before the start of each financial year but is often delayed and any increase in salary is backdated to the beginning of April.
The Ministry of Defence has yet to announce this year’s settlement, though the pay review body has submitted its recommendations and an announcement is expected soon.
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0:59
‘If my economic policies fail it’s on me’
One RAF aviator described the process as “an annual gamble on what we may or may not receive”.
Asked what message they had for the government, the aviator said: “Understand that your military deserves to be fairly compensated for the role they play in support of the UK on all fronts … We see through the words and false promises and expect to be treated fairly in return for our commitment to the crown and our country.”
Sarah Atherton MP, an Army veteran and member of the Commons Defence Select Committee, said the government should give the military a 10% pay rise in line with inflation.
“We’ve never had such an unstable global security situation, and we need our Armed Forces to protect us when we want them to protect us,” she told Sky News in an interview.
“We need to make sure they are valued and they feel valued.”
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1:51
Do we have an inflation problem?
Stepping in to fill the void are military charities like the RAF Benevolent Fund.
It said enquiries about financial assistance from or on behalf of serving personnel more than doubled last year to 539 cases compared with 2021.
In response to questions about the cost of living and food banks, the RAF spokesman said: “The food bank at RAF Coningsby was not set up by the RAF for its personnel, and the RAF offers a range of support, such as welfare officers who can offer financial advice and access to fuel grants and hardship funds provided by the RAF, and supporting charities and associations.
“More widely, defence has created a comprehensive package of support that includes the biggest pay increase in 20 years, freezing daily food costs, providing accommodation subsidies and saving up to £3,400 per child per year by extending wraparound childcare – this is in addition to wider cost of living support provided by the government.”
Last financial year, the government awarded service personnel up to the rank of one-star a 3.75% pay rise – described as the biggest percentage uplift in two decades. But inflation has since rocketed, with consumer prices in February jumping 10.4% from a year earlier.
If you ever fly to Washington DC, look out of the window as you land at Dulles Airport – and you might snatch a glimpse of the single biggest story in economics right now.
There below you, you will see scattered around the fields and woods of the local area a set of vast warehouses that might to the untrained eye look like supermarkets or distribution centres. But no: these are in fact data centres – the biggest concentration of data centres anywhere in the world.
For this area surrounding Dulles Airport has more of these buildings, housing computer servers that do the calculations to train and run artificial intelligence (AI), than anywhere else. And since AI accounts for the vast majority of economic growth in the US so far this year, that makes this place an enormous deal.
Down at ground level you can see the hallmarks as you drive around what is known as “data centre alley”. There are enormous power lines everywhere – a reminder that running these plants is an incredibly energy-intensive task.
This tiny area alone, Loudoun County, consumes roughly 4.9 gigawatts of power – more than the entire consumption of Denmark. That number has already tripled in the past six years, and is due to be catapulted ever higher in the coming years.
Inside ‘data centre alley’
We know as much because we have gained rare access into the heart of “data centre alley”, into two sites run by Digital Realty, one of the biggest datacentre companies in the world. It runs servers that power nearly all the major AI and cloud services in the world. If you send a request to one of those models or search engines there’s a good chance you’ve unknowingly used their machines yourself.
Image: Inside a site run by Digital Realty
Their Digital Dulles site, under construction right now, is due to consume up to a gigawatt in power all told, with six substations to help provide that power. Indeed, it consumes about the same amount of power as a large nuclear power plant.
Walking through the site, a series of large warehouses, some already equipped with rows and rows of backup generators, there to ensure the silicon chips whirring away inside never lose power, is a striking experience – a reminder of the physical underpinnings of the AI age. For all that this technology feels weightless, it has enormous physical demands. It entails the construction of these massive concrete buildings, each of which needs enormous amounts of power and water to keep the servers cool.
We were given access inside one of the company’s existing server centres – behind multiple security cordons into rooms only accessible with fingerprint identification. And there we saw the infrastructure necessary to keep those AI chips running. We saw an Nvidia DGX H100 running away, in a server rack capable of sucking in more power than a small village. We saw the cooling pipes running in and out of the building, as well as the ones which feed coolant into the GPUs (graphic processing units) themselves.
Such things underline that to the extent that AI has brainpower, it is provided not out of thin air, but via very physical amenities and infrastructure. And the availability of that infrastructure is one of the main limiting factors for this economic boom in the coming years.
According to economist Jason Furman, once you subtract AI and related technologies, the US economy barely grew at all in the first half of this year. So much is riding on this. But there are some who question whether the US is going to be able to construct power plants quickly enough to fuel this boom.
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2:08
Is Trump’s AI plan a ‘tech bro’ manifesto?
For years, American power consumption remained more or less flat. That has changed rapidly in the past couple of years. Now, AI companies have made grand promises about future computing power, but that depends on being able to plug those chips into the grid.
Last week the International Monetary Fund’s chief economist, Pierre-Olivier Gourinchas, warned AI could indeed be a financial bubble.
He said: “There are echoes in the current tech investment surge of the dot-com boom of the late 1990s. It was the internet then… it is AI now. We’re seeing surging valuations, booming investment and strong consumption on the back of solid capital gains. The risk is that with stronger investment and consumption, a tighter monetary policy will be needed to contain price pressures. This is what happened in the late 1990s.”
‘The terrifying thing is…’
For those inside the AI world, this also feels like uncharted territory.
Helen Toner, executive director of Georgetown’s Center for Security and Emerging Technology, and formerly on the OpenAI board, said: “The terrifying thing is: no one knows how much further AI is going to go, and no one really knows how much economic growth is going to come out of it.
“The trends have certainly been that the AI systems we are developing get more and more sophisticated over time, and I don’t see signs of that stopping. I think they’ll keep getting more advanced. But the question of how much productivity growth will that create? How will that compare to the absolutely gobsmacking investments that are being made today?”
Whether it’s a new industrial revolution or a bubble – or both – there’s no denying AI is a massive economic story with massive implications.
For energy. For materials. For jobs. We just don’t know how massive yet.
Pizza Hut is to close 68 restaurants and 11 delivery sites with the loss of more than 1,200 jobs after the company behind its UK venues fell into administration.
The company has said 1,210 workers are being made redundant as part of the closures.
DC London Pie, the firm running Pizza Hut’s restaurants in the UK, appointed administrators from corporate finance firm FTI on Monday.
It comes less than a year after the business bought the chain’s restaurants from insolvency.
On Monday, American hospitality giant Yum! Brands, which owns the global Pizza Hut business, said it had bought the UK restaurant operation in a pre-pack administration deal – a rescue deal that will save 64 sites and secure the future of 1,276 workers.
A spokesperson for Pizza Hut UK confirmed the Yum! deal and said as a result it was “pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.
“Approximately 2,259 team members will transfer to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.”
Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, called Monday’s agreement a “targeted acquisition” which, he said, “aims to safeguard our guest experience and protect jobs where possible.
“Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”
The administration came after HMRC filed a winding up petition on Friday against DC London Pie.
DC London Pie was the company formed after Directional Capital, which operated franchises in Sweden and Denmark, snapped up 139 UK restaurants from the previous UK franchisee Heart with Smart Limited in January of this year.
Staff at the Bank of England are on alert for potential job cuts in Threadneedle Street after the governor, Andrew Bailey, warned of tough decisions about the institution’s future cost base.
Sky News has learnt that Mr Bailey informed Bank of England employees in a memo last week that it was taking a detailed look at costs, although it did not specifically refer to the prospect of redundancies.
One source said the memo had been sent while Mr Bailey was attending the International Monetary Fund (IMF) meeting in Washington.
Its precise wording was unclear on Monday, but one source said it had warned of “tough choices” that would need to be made as the bank accelerated its investment in new technology.
They added that managers had been briefed to expect to have to make savings of between 6% and 8% of their operating budgets.
The Bank of England employed 5,810 people at the end of February, of whom just over 5,000 were full-time, according to its annual report.
Those numbers were marginally higher than in the previous year.
The central bank’s budget, funded through a levy, is expected to be £596m in the current financial year.
The workforce figures include the Prudential Regulation Authority, Britain’s main banking regulator, which is set to get a new boss next year when Sam Woods steps down after two terms in the role.
A Bank of England spokesperson declined to comment on the contents of Mr Bailey’s memo.
They also declined to provide details of the timing of any previous rounds of redundancies at the bank.