Royal Irish Regiment (RIR) soldiers will receive redundancy payments worth up to £151,000 under a plan announced today to disband three of its Northern Ireland-based battalions.
Armed Forces Minister Adam Ingram announced around 2,000 full-time members of the regiment will receive a tax-free lump sum of £28,000 in addition to their normal army redundancy.
Around 1,100 part-time members of the RIR will also be given a tax-free ex gratia payment of £14,000, and there will also be a welfare package to help full and part-time RIR members resettle, retrain and find work.
Mr Ingram said that the tax-free sum was a reflection of the high regard with which the regiment was held.
"The unique and exceptional payment of the tax-free ex gratia award is specifically designed to acknowledge the impact that disbandment will have on soldiers currently serving with the Royal Irish Regiment (Home Service) battalions," the minister said.
Prime Minister Tony Blair official spokesman said the package reflected the "unique pressures" faced by the regiment.
The three battalions are being wound down in August next year following the IRA's declaration last year of an end to its armed campaign.
The RIR was formed by the merger of the Royal Irish Rangers and Ulster Defence Regiment. The latter was despised by many republicans because so many of its members came from the North's unionist community and was associated with loyalist collusion.
The Democratic Unionist leader Rev Ian Paisley campaigned to have the regiment retained but when it became evident this would not happen, he led the charge for generous redundancies.
RIR members were informed of the redundancy plan today before the announcement.
Soldiers wishing to be transferred to other British army regiments would be offered a taxable engagement bounty of £10,000.
It was also confirmed the regiment's band will be disbanded by March 2008 and replaced by the Northern Ireland Territorial Army band, which will be renamed the Royal Irish Regiment Band (TA).
Regular Army musicians in the current RIR band will be posted to other bands.
