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Armed Forces Compensation Scheme

Volume 524: debated on Wednesday 9 March 2011

I have today published a report entitled, “The Review of the Armed Forces Compensation Scheme—One Year On”. The report summarises the recommendations from the review and provides an overview of the work undertaken by the Ministry of Defence over the past 12 months to implement the recommendations. Copies of the report are available in the Library of the House or can be accessed at the following website:

The outcome of Admiral the Lord Boyce’s review of the armed forces compensation scheme was announced in February 2010. While the review found that the scheme was fundamentally sound, it made a number of recommendations for improvement. I made some early legislative changes last summer.

I am today pleased to announce the completion of all remaining changes that will lead to significant increases in the value of awards under the scheme. Most notable is the change to guaranteed income payments—paid from the point of service discharge for life—which will be increased to reflect the lasting impact of more serious injuries on future likely promotions and on the ability to work up to age 65.

Other changes include:

An increase, which averages in excess of 25%, to all lump sum award payments. This is except the top award which was recently doubled to £570,000;

Nearly tripling the maximum award for mental illness from £48,875 to £140,000 in order to reflect accurately the impact of the most serious mental health conditions;

The creation of a new independent medical expert group to advise on compensation for specific, relevant illnesses and injuries such as hearing loss and mental health;

A revised approach to awarding compensation for multiple injuries, whereby all injuries sustained will receive some compensation.

No one will lose out as a result of these changes. All those who have already received an award under the scheme will have their case automatically revisited and will receive an uplift.