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Armed Forces Compensation Scheme

Volume 470: debated on Friday 25 January 2008

To ask the Secretary of State for Defence what estimate he has made of the effect on costs of the changes in arrangements for payment of lump sums under the Armed Forces Compensation Scheme coming into force on 8 February 2008. (180518)

There are at present 24 personnel with serious multiple injuries who have submitted a claim and will benefit from the change to the multiple injury rule which comes into effect on 8 February 2008. Under the rules of the Armed Forces Compensation Scheme, individuals have up to five years in which to make a claim, accordingly, there maybe others who have yet to claim. However, it is estimated that the 24 cases will cost an additional £2-4 million following the revised rule coming into effect.

Estimating the numbers of potential claimants and therefore future costs is always difficult. The Ministry of Defence will meet its obligations to pay entitlements to compensation in accordance with the rules of the Armed Forces Compensation Scheme.