My understanding is that the numbers being trained and required to parachute are being drastically reduced and therefore less will receive the pay supplement. Paradrops haven't been used for a large force (doubt if a company has jumped together in operation for more than 20 years) for some time. The pay supplement is not being removed entirely. The problem lies that they are removing it from a significant number who have got used to the extra pay and it will hit them. It does appear odd that it is proposed that 2 Bn of the Parachute Regiment will not be trained to parachute. Is this the end of the Parachute Regiment? I was in receipt of extra pay and it is difficult to justify if you are not actually doing that role but merely qualified.
However this comes shortly after there were talks about putting the 'Military Covenant' on a formal legal footing. I thought then that rather than talk about this it would be better if the Government provided the right equipment in adequate numbers, kept the pay correct and tried not to reduce morale. MQ's and accommodation are also important of course. IMO it was a mistake to close the military hospitals. It seems that at every turn there is another morale lowering initiative mainly due to the poor way in which it is announced eg warning personnel serving in Afghanistan that they may be made redundant.
Perhaps a better target than the Olympics is the money paid in overseas aid.