Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
RFCA governance and oversight require significant reform to support Strategic Defence Review ambitions.
Recommendation
The Department said it is now at an ‘inflection point’ where the governance and oversight of the RFCAs needs to be fit for purpose to support the ambitions in the SDR. In part, the Department intends to achieve this through its desired creation of an NDPB. It explained that other elements involved embedding good governance and oversight and making sure that the current information flow and the relationships between the Department and the Council were in the right place.27
Government Response Summary
The Department will write to the Committee by 31 March 2026 with an update on its progress in establishing an NDPB, including details of how it will ensure the correct balance between the operational effectiveness of the NDPB with the benefits of having local volunteer input.
Government Response
Accepted
HM Government
Accepted
3. PAC conclusion: The Department has not secured the legislative slot it needs for its preferred route forward, of streamlining the 13 RFCAs and the Council into a non- Departmental public body (NDPB). 3. PAC recommendation: The Department should write to the Committee by 31 March 2026 with an update on its progress in establishing an NDPB. This should include details of how it will ensure the correct balance between the operational effectiveness of the NDPB with the benefits of having local volunteer input. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 3.2 Good progress continues within the department towards the establishment of a Reserves Forces and Cadet Association (RFCA) Non-Departmental Public Body (NDPB). This follows the recommendations of the 2019 Sullivan Review, which identified the need for stronger governance and a more consistent approach across the 13 regional RFCAs. 3.3 A key early step was the Ministry of Defence’s designation of the Assistant Chief of the Defence Staff (Reserves & Cadets) as the Senior Responsible Owner (SRO), providing a clear point of leadership between the RFCAs and the department. Assurance and oversight have already improved through clearer service-level agreements, financial controls and reporting mechanisms. 3.4 The NDPB proposal remains one of the measures being developed for potential inclusion in the 2026 Armed Forces Bill. This will deliver the benefits expected of an NDPB model, including greater accountability, transparency and consistency of corporate governance. It supports the department’s ambition for a modernised organisational structure that can continue to provide effective stewardship of the Reserve and Cadet estate, workforce and community engagement responsibilities. 3.5 The RFCAs’ close connection with local employers, communities and volunteers remains central to operational effectiveness and resilience. Development of the NDPB model continues to ensure that these relationships and local volunteer input remain embedded at the heart of the future organization’s ways of working. 3.6 The department will provide updates on progress as requested by the Committee.