Skip to main content

Armed Forces Compensation Scheme

Volume 506: debated on Monday 22 February 2010

To ask the Secretary of State for Defence what plans he has to monitor the effectiveness of the changes to the Armed Forces Compensation Scheme announced on 10 February 2010. (318023)

The Government are committed to implementing all of the recommendations put forward by Lord Boyce in his Review of the Armed Forces Compensation Scheme. A report on progress will be made in 12 months time to the Central Advisory Committee on Pensions and Compensation, a statutory advisory body, whose members include representatives of Service and ex-service organisations as well as military personnel. As recommended in the Report this same body will monitor progress on implementation of the Review’s recommendations and will also be the route through which any further reviews of aspects of the Scheme which might be required are conducted.

To ask the Secretary of State for Defence by what means lifetime earnings lost by reservists as a result of injuries sustained in service be (a) calculated and (b) accounted for in the Armed Forces Compensation Scheme following implementation of the changes to the Scheme announced on 10 February 2010. (318024)

A Reservist’s Guaranteed Income Payment is calculated, in the same way as a Regular’s, using age and salary at time of discharge and reflecting the severity of the injury. The salary for Reservists is calculated using a military salary of equivalent rank as a Regular plus any Reservist pay supplements that an individual earns to compensate those whose gross civilian salary is higher than their gross Service pay. In line with the Review Recommendations the Guaranteed Income Payment calculation will be amended to reflect, for the most seriously injured, the average number of promotions they are no longer able to receive. This will apply to Reservists and Regulars alike.

To ask the Secretary of State for Defence when he expects the compensation review for people injured since April 2005 announced on 10 February 2010 to be completed. (318028)

The Government have accepted all of the recommendations put forward by Lord Boyce in his Review of the Armed Forces Compensation Scheme and these will be implemented as quickly as possible. Some of the changes will be completed by the summer, while those which require more time to translate into detailed legislation are expected to be complete in about 12 months’ time.