CONFIDENTIAL

3RD DRAFT

but not long enough to qualify for an immediate award on retire-

ment. The new arrangements will take the form of the award of

deferred pensions and terminal grants at the age of 60, although

we hope that eventually Servicemen who leave will have their

pension values transferred to the pension schemes of their subse-

quent employers, in line with the Social Security Act 1973.

CONDITIONS OF SERVICE

Housing for Servicemen and their Families

24. Some Servicemen experience problems in obtaining suitable

housing on leaving the Services and proposals are being considered

to alleviate such difficulties. The advice given to local

authorities on the provision of council housing for ex-Servicemen

has been reviewed in consultation with the Department of the

Environment, who have issued/who are issuing_7 a new guidance

circular. Improvements are being made to the existing Assisted

House Purchase Scheme, by increasing the amounts available to

participants and by extending the period during which the advance

of pay can be made from the last year of service to the last two

years. In addition, a new Assisted House Purchase Scheme is to be

introduced, designed to help those in the Services of 50 years of

age or more to purchase a house in the last five years of their

service.

Family Welfare

25. The report of the Naval Welfare Committee, under Lord Seebohm,

was published in February 1974. Its key recommendation, to build

up a professionally-staffed social service to encompass all aspects

of welfare for Naval personnel and their families, has been accepted

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