From 1 October 2026, some Local Overseas Allowance (LOA) rates will go up, and some will go down, depending on the cost of living in your location.
Check the new rates for where you're based before the change takes effect.
LOA explained
LOA is money paid to Service personnel who are working overseas.
It helps cover the extra cost of everyday living overseas, when prices abroad are higher than in the UK.
What's changing and why
Every year, experts check the cost of living in each country. They use information from the Employment Conditions Abroad (ECA) survey and the Office for National Statistics (ONS). This tells us if prices have gone up or down compared to the UK.
Two things to know about this year's changes:
1. Child rate is staying the same: The way LOA works out payments for children is being looked at again. Until this review finishes, child LOA rates will not change.
2. Second car payments are going down: New ONS data shows that running a car in the UK now costs less than before. As LOA compares costs to the UK, this means the second car payment is going down everywhere.
What you need to do
Look up the full details on the new rates for your location. These can be found in the Directed Letter 'Revised Local Overseas Allowance Rates effective from 1 October 2026' (on defnet and Defence Connect).
Your Offer, recognising your service
There are other allowances available to help with essential needs and family wellbeing while you're overseas.
Find out more in JSP 752 or visit Discover My Benefits to explore the range of savings, allowances and opportunities available.
Point of Contact
The Allowances Team: People-AFRem-AllcesGroup@mod.gov.uk