News of the MoD study comes as Defence Secretary Liam Fox prepares to address Parliament later on amendments to the Armed Forces Bill that will see principles of the military covenant - the nation's duty of care to personnel - written into law for the first time.

BBC: MoD cost reviews looks to find fresh cuts

The MoD says the new study is part of work being done to ensure it matches its planning assumptions with its spending settlement, and closes the gap between the two.

BBC: MoD cost reviews looks to find fresh cuts