Key facts
- Thousands of civilian employees at the Ministry of Defence's Defence Equipment and Support (DE&S) unit will not receive their expected pay rise and bonuses until early 2027.
Thousands of civilian employees at the Ministry of Defence's Defence Equipment and Support (DE&S) unit will not receive their expected pay rise and bonuses until 2027, a significant delay that has caused morale to plummet. The proposed pay increase is also reportedly lower than that for military personnel.

The delay in pay rises for key defence civilian staff highlights potential strain on the UK's defence budget and raises concerns about morale and retention within a critical sector responsible for equipping the armed forces. This situation could impact the UK's readiness and ability to respond to evolving geopolitical threats.
Civilian staff at the Ministry of Defence's Defence Equipment and Support (DE&S) unit, responsible for equipping the UK's armed forces, have been informed that their expected pay rise and bonuses will be delayed until early 2027. This decision has reportedly caused morale to fall significantly, with an insider stating it is 'through the floor'.
There is existing discontent among the workforce regarding the size of the proposed pay increase, which is understood to be less than the 3.6% boost already agreed for military personnel. Trade unions, including the Public and Commercial Services (PCS) union, are actively engaged in negotiations with the Ministry of Defence to try and secure an improved offer and expedite payments, particularly for lower-paid members who are facing financial hardship.
The delay is attributed to an overstretched defence budget. The government has repeatedly highlighted increased defence funding, but sources suggest that securing a larger uplift from the Treasury has been challenging. This financial strain was a factor in John Healey's resignation as defence secretary in June.
DE&S plays a critical role in delivering weapons and equipment programmes outlined in the Defence Investment Plan. The PCS union has described the overall pay settlement as falling 'well short of the standards set out in our national pay policy' and has expressed alarm at the extended delay for payments.
Speculation that senior leadership might still receive their increases on time was circulating, but a defence source indicated that all staff would face the delay. A Ministry of Defence spokesperson stated that discussions with trade unions are ongoing and that the department is committed to finding a resolution.