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.
The US central bank has made no change to interest rates and warned the world’s biggest economy will see less growth and higher inflation due to tariffs.
The Federal Reserve, known as the Fed, held rates despite President Donald Trump calling its chair, Jerome Powell, a “stupid person” on Wednesday.
“Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed? I’d do a much better job than these people,” Mr Trump said.
Despite appointing Mr Powell himself in 2017, Mr Trump has expressed anger towards the Fed chair at multiple points in the past for not bringing down borrowing costs through interest rate cuts.
In his own address to reporters, Mr Powell declined to hit back.
The tariff effect
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But Mr Trump’s signature economic policy of tariffs – taxes on imports – was again forecast to cause higher inflation and lower economic growth in the US.
The Fed’s predictions for inflation were upgraded to 3.1% for 2025 from 2.5% in December, while the outlook for US economic growth was downgraded to 1.4% from 2.1% in December.
The effect of those extra taxes on imports will take time to work its way through the system and show up in prices on shelves, the Fed chair said.
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2:56
Trump may strike Iran
An uncertain outlook
While the level of uncertainty peaked in April, when Mr Trump announced many of his tariffs, and has since fallen, it remains elevated, Mr Powell said.
The exact impact of the levies is unclear and depends on the levels they reach, he added.
Many of the country-specific tariffs have been paused for 90 days, which is currently due to end on 8 July.
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Santander has approached its fellow Spanish banking group Sabadell about a takeover of TSB, its British high street bank.
Sky News has learnt that Santander is among the parties which have expressed an interest in a potential deal, months after its boss denied that it was seeking to offload the UK’s fifth-largest retail bank.
City sources said on Wednesday that Santander had not tabled a formal offer for TSB, and was not certain to do so.
However, the fact that it has contacted Sabadell about a possible transaction involving TSB suggests that Ana Botin, the Santander chair, may be open again to expanding its presence in Britain’s high street banking market.
The extent of the overlap between the two companies’ UK branch networks was unclear on Wednesday morning.
Santander, which like other banks has been engaged in an extensive branch closure programme for some time, now has roughly 350 UK branches, while TSB operates roughly half that number.
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The value that TSB, which was acquired by Sabadell in 2015 from Lloyds Banking Group, might attract in any takeover is also unclear.
Sabadell is in the middle of attempting to thwart a hostile takeover by rival Spanish bank BBVA – a deal revealed by Sky News last year – with a disposal of TSB said to be on the cards regardless of whether or not that bid is successful.
Ms Botin insisted that the UK remains a core market for Santander in the wake of speculation that she might sanction a sale of the business.
The company recently confirmed a Sky News report that Sir Tom Scholar, the former top Treasury official sacked by Liz Truss during her brief premiership, was joining the bank’s UK arm as its next chairman.
NatWest Group, which recently returned to full private ownership, was reported to have submitted an offer worth about £11bn for Santander UK.
No discussions are ongoing about such a deal.
NatWest, Barclays and HSBC have also been touted as potential suitors for TSB, although at least two of those three banks are thought to have little interest in bidding.
TSB was effectively created from the ashes of the 2008 financial crisis, when a vehicle set up to acquire assets from distressed banking groups lost out in an auction to a bid from the Co-operative Bank.
That deal fell through when it emerged that the Co-operative Bank itself was in a perilous financial state.
Sabadell explored a sale of TSB about five years ago, but opted to retain the business.
Goldman Sachs is thought to be advising Sabadell on the prospective sale of TSB.
Responding to a report in the Financial Times on Sunday that TSB had been put up for sale, Banco Sabadell said: “Banco Sabadell confirms that it has received preliminary non-binding expressions of interest for the acquisition of the entire share capital of TSB Banking Group plc.
“Banco Sabadell will assess any potential binding offer it may receive.”
Santander declined to comment.
The TSB process emerged just hours after Sky News had revealed that Metro Bank, the high street lender, had been approached by Pollen Street Capital, the private equity firm, about a possible takeover.
The absence of a statement from either party implies that the approach was rejected and that Pollen Street has abandoned its interest, at least temporarily.
Inflation eased to an annual rate of 3.4% in May, according to official figures released this morning, but the Bank of England is widely expected to leave interest rates on hold despite that.
The Office for National Statistics (ONS) reported the consumer prices index measure eased from 3.5% the previous month.
It said that despite upwards pressure on prices from food and clothing, the decline was driven by falls in airfare prices following Easter.
Today’s headline inflation number suggests a flat picture for price growth overall.
But there is one stat that households will already be familiar with after a visit to the supermarket.
A jump in some food prices has been noticeable, with the ONS flagging a leap in its food and non-alcoholic drinks measure of inflation to a 15-month high.
Why the rise? Chocolate has spiked significantly this year due to a cocoa shortage blamed on poor harvests. Meat, particularly beef, has shot up on high global demand and rising costs.
The food and non-alcoholic drinks category has been on the rise for five months in a row. But the good news is that high rates of sales promotions by chains – discounts – are helping keep a lid on overall grocery bills.
“Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.
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“These were partially offset by rising food prices, particularly items such as chocolates and meat products. The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.”
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1:21
Businesses facing fresh energy cost threat
Forecasts suggest that inflation will tick up over the second half of the year – with effects from Donald Trump’s trade war and rising commodity costs amid events in the Middle East among the concerns ahead for the Bank of England.
It has adopted a “careful” and “gradual” approach to interest rate cuts as a result.
That is despite weakening employment data, reported earlier this month, which showed a tick up in the official jobless rate and a 109,000 reduction in payrolled employment.
Other elements of the inflation data are also supportive of an argument for rate cuts.
Core CPI inflation – a measure that strips out volatile elements such as energy and food – eased from 3.8% in April to 3.5% while services inflation tumbled sharply to 4.7% from 5.4% the previous month.
Nevertheless, the Bank is widely expected to leave Bank rate on hold on Thursday following the June meeting of its rate-setting committee.
LSEG data showed after the inflation data that financial markets currently see two more interest rate cuts by the year’s end.
Risks to prices ahead will come from a sustained Israel-Iran war pushing up oil and gas prices but there have been different views among policymakers over whether the trade war will result in inflation or not.
As such, the minutes of the Bank’s meeting will be closely scrutinised for hints on whether rate cut caution is easing.