MoD: Serco wins huge £1.5bn contract for Royal Navy, Army and RAF recruitment in effort to finally hit targets

Government contractor Serco has been awarded a huge multiyear £1.5bn contract to boost personnel numbers across the military. This comes in the wake of years of missed targets for acquiring new military personnel, with more people leaving the forces than entering them.

Serco announced that it would be the prime contractor for the Royal Navy, the British Army, the Royal Air Force and Strategic Command, with recruitment for the branches brought under one privatised service.

Mark Irwin, Serco Group chief executive, said: “It is a true privilege to be selected to partner with the UK Ministry of Defence in service of the nation’s current and future Armed Forces. Serco has been working with the MOD for over 60 years, and we fully recognise the critical importance of recruiting and retaining the right number of well-trained personnel willing to serve and defend their country.

“Along with our partners, we have invested in the development of this solution since the procurement for AFRS was launched in 2021 and we are fully committed to ongoing collaboration with the MOD to ensure we adapt to current and emerging needs.”

The Armed Forces Recruitment Service (AFRS) contract will last for seven years, and contains options for three one-year extensions. Serco said there will be a 21-month mobilisation period starts in April of this year, with the new service commencing in early 2027.

Sign up for free Portsmouth News newsletters

Anthony Kirby, UK & Europe chief executive, said: "This contract reflects our broader ability to support members of the Armed Forces on their career journey, from recruiting the right personnel, to providing assessments, medicals, and onboarding, leading into their military training. I am proud of the significant and strategic partnership we have with the MOD and look forward to building upon this as we enter this new service.”

The Financial Times reports this is a major blow for Capita, which has overseen Army recruitment since 2012 and submitted a bid for the new contract. They have been repeatedly criticised for continuing to miss targets.

Armed forces minister Luke Pollard told the Financial Times that the government is making the necessary changes to bolster Britain’s Royal Navy and wider armed forces. He added that keen and capable prospective recruits have been failed by “an outdated system, full of delays and inefficiencies”.