Are you living or posted overseas this summer? If so, make sure you’re aware of the changes to the way Local Overseas Allowance (LOA) is being calculated, which are coming into effect from 1 July.

LOA is an allowance to help with the additional cost of day-to-day living when assigned overseas.

What are the changes?

The new package will replace the current ‘Main Station LOA’ and ‘Small Station LOA’. You’ll now receive a daily LOA rate and then you may be able to claim separately for overseas private vehicle and respite (travel and accommodation) costs. Previously, some of these costs may have been paid within the daily rate. Eligibility will remain the same, but it will no longer be based on rank. The Overseas Private Vehicle Provision (OPVP) became available from 1 April and contributes towards buying/selling, shipping or cancelling the lease of a vehicle.

When will I know if my rate will change?

Details on the new rates of LOA were announced earlier this month. Any increase will be paid from 1 July, and for those of you who face a significant decrease, there should be a three-year phased transition.

Where can I find more information?

Speak to your unit admin, see the AFF website or go to gov.uk

If you’re struggling with the changes or want to share how they will affect you, contact AFF’s money specialist, Claire Hallam at money@aff.org.uk

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