Statement: armed forces compensation scheme
11 February 2010 (updated on 22 April 2010)
Defence Secretary, Bob Ainsworth, announced in a Commons ministerial statement, the publication of the review of the armed forces compensation scheme.
- Video and Audio: Armed forces compensation scheme
- Commons Hansard: Armed forces compensation scheme
- About Parliament: Ministerial statements
- Ministry of Defence: Armed forces compensation scheme: new arrangements (external site)
- Topical Issues: Armed forces welfare
Main recommendations
The review of the scheme, which started last autumn, was conducted by Lord Boyce, former Chief of the Defence Staff. His team's main recommendations include:
- increase most of the lump sum compensation payments
- increase tax-free annual payments to those who suffer the most serious injuries
- increase the top-level award for those who suffer mental illness because of their service, as well as increasing their annual guaranteed income payment
- all injuries from a single incident will be recognised as part of the compensation award
- new fast-track interim payment will be introduced, so that those injured can receive some money before the entire claims process is completed
- extension to the time that people have to make and to appeal claims, including taking account of the late onset of a condition
- creation of a new opportunity for exceptional reviews after 10 years if health conditions unexpectedly and significantly deteriorate
- increasing payments to widows
- creation of an independent expert medical group to advise on the right level of compensation payments, as the knowledge and treatment of certain medical conditions improve