Statement: armed forces compensation scheme

11 February 2010

Defence Secretary, Bob Ainsworth, announced in a Commons ministerial statement, the publication of the review of the armed forces compensation scheme.

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

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