THE amount of money service personnel receive in allowances is to be slashed by a third over the next three years, the Ministry of Defence has announced.
Following a review of the system as part of the defence cuts, the MoD has revealed a package of changes to save 250m from the 880m total allowance bill between now and 2014.
Personnel serving in Afghanistan have been spared the worst of the cuts, which defence minister Andrew Robathan admitted would be 'painful for some personnel'.
He added: 'But we are all aware of the financial difficulties facing the country and we have had to make hard decisions.'
Shadow Defence Secretary Jim Murphy blasted the cuts as 'scandalous double standards'.
He said: 'The Tory-led government is slashing allowances and bonuses for the brave men and women of our armed forces but taking no action on billion-pound bankers' bonuses.
'They really must get their priorities straight.'