Under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2005, benefits are payable to eligible surviving adult dependants/children of servicemen killed in action on or after 6 April 2005. The scheme provides compensation where death was caused by service on or after 6 April 2005 (causes before this date are considered under the war pension scheme).
Benefits are calculated in accordance with the rules of the scheme and consist of a bereavement grant of up to £20,000, a survivor’s guaranteed income payment (SGIP) payable for life and payments to eligible children.
The calculation for SGIP is based on the serviceman’s salary and age at death and is taxable. This is paid monthly for life even in the event of remarriage. Payments to eligible children are based on similar calculations but the payment for children depends on the number of children and whether there is a surviving adult dependant.
It is not normally a necessity that an inquest is carried out before compensation can be paid, the results of an inquest may however be required if there is a question as to whether death was due to service.
The settling of funeral accounts and associated expenses is an entirely separate process and is not affected by any decision on compensation payments. Families may choose between having a service (military) funeral or a private family funeral. In the first instance all approved expense arising from a service funeral is paid by the MOD and the family also receive a cash grant of £500 to use as they wish to defray incidental expenses. If the family elect to have a private funeral then a grant is made, according to the type of funeral or cremation, currently up to a maximum of £2,760.