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Armed Forces: Compensation

Volume 483: debated on Tuesday 18 November 2008

To ask the Secretary of State for Defence what assessment has been made of the operation of the Armed Forces Compensation Scheme in comparison with (a) compensation arrangements for police officers and (b) other public sector compensation schemes as part of the review of public service injury benefits; and if he will make a statement. (236993)

In conducting the recent review of armed forces compensation scheme tariff levels, we considered a number of other public sector compensation schemes including the police. Comparison is not straightforward as the underlying principles of the schemes are so dissimilar but the armed forces compensation scheme compared favourably with them. Reflecting the special circumstances of service in today's armed forces, the Service Personnel Command Paper announced the Government's intention to double the maximum lump sum award to £570,000. This is in addition to a guaranteed tax-free inflation proof income for life. Following a period of consultation, we are laying this week the necessary legislation to increase the lump sum awards.