MILITARY personnel at Catterick Garrison and elsewhere face big rent hikes because they are paying far less than civilians, ministers have warned.

Charges will rise by up to £30 a month after the Ministry of Defence (MoD) concluded that about 55 per cent of personnel are “undercharged”.

Defence Secretary Michael Fallon defended the shake-up, arguing the current system was badly out of date and failed to take into account recent improvements.

But Labour said the move was another kick-in-the-teeth for the army, after thousands of soldiers were made redundant and pay was held back for the remainder.

Vernon Coaker, the party’s defence spokesman, said: “Now the Defence Secretary says our armed forces and their families should pay higher rent for basic service accommodation.”

The most recent survey had found falling satisfaction with military accommodation – from 74 per cent to 69 per cent – with 27 per cent of personnel unhappy with maintenance, he said.

Under the plans, increased rents will be phased in for soldiers, sailors and airmen currently paying at the “lower end”, over up to seven years.

Currently, 40 per cent of tenants are paying the correct amount, the MoD believes – with only five per cent overpaying and 55 per cent undercharged.

Civilians spend up to be 40 per cent of their pay on rent, but most military personnel will pay just ten per cent, even after the planned hikes.

A MoD spokeswoman was unable to suggest what proportion of personnel face higher charges at Catterick, in North Yorkshire, Europe's biggest Army base.

But this year’s brochure states: “It’s plain to see that significant money already has been spent both on barracks and to improve living accommodation for both single soldiers and for families.”

Catterick boasts 19 separate barracks, with accommodation for almost 10,000 single personnel and for 2,400 families, the latter spread around nearby towns.

In a statement to MPs, Mr Fallon said all extra rental money would be ploughed back into improving military accommodation, including energy efficiency measures to cut heating bills.

From April 2016, no service family would be allocated a property that failed to meet the Government's ‘decent homes standard’.

Mr Fallon said: “This will change charges so that they accurately reflect the quality of the home provided.

"Many of those currently paying charges at the lower end of the scale, particularly where they live in upgraded, better quality properties, would see charges gradually increase over a number of years.”

An 18-month survey will provide up-to-date information on the condition of every property, to allow the new rent to properly set from April 2016.

Nine bands will replace the current four-band structure, but with no increase to the highest rents – which are capped at £289 a week.