Ministry of Defence
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MoD introduces increased compensation for injured personnel

MoD introduces increased compensation for injured personnel

MINISTRY OF DEFENCE News Release (273/2008) issued by COI News Distribution Service. 15 December 2008

Compensation payments for the most serious injuries have been doubled to a new maximum lump sum of £570,000 today (Monday 15 December).

All injured personnel who have received an award under the Armed Forces Compensation Scheme will receive an increase of between 10 and 100% to their tax-free lump sum payment. For the most seriously injured, this is in addition to their tax-free index linked Guaranteed Income Payment that is paid monthly for life after leaving the Armed Forces.

The 140 most seriously injured have been written to today with details of their increased compensation payments and will receive their additional money over the next few days. Those less seriously injured will receive their additional compensation over the next few months. In total more than £10million in additional compensation will be paid to approximately 2,700 injured servicemen and women.

The MoD announced the intention to increase the lump sum compensation payments as part of the Service Personnel Command Paper, published in July. The paper - "The Nation's Commitment: Cross-Government Support to our Armed Forces, their Families and Veterans" - outlined a package of 40 new measures to improve the lives of Service Personnel, their families and veterans. This is the first time that such a cross-Government strategy has been issued and it sets the standard for the level and scope of support our Service personnel can expect.

Under Secretary of State for Defence, Kevan Jones, said:

"Our Armed Forces are inspirational and they deserve the very best support - that is why I am determined to see through the package of measures we announced in the Service Personnel Command paper. This increase in our compensation package will be a great boost to our injured personnel and their families."

Chris Simpkins, Director General of The Royal British Legion, said:

"We are very happy that the Ministry of Defence listened to the concerns outlined in the Legion's 'Honour the Covenant' campaign and that today, in respect to improvements to compensation arrangements for those with conditions relating to Service, the Government's promises are being implemented. It is particularly good news coming just before Christmas and will be a welcome boost for all those who have been injured."

All future compensation claims made under the Armed Forces Compensation Scheme will be processed using the enhanced tariff amounts.

Notes to Editors

1. The Armed Forces Compensation Scheme provides compensation based on a 15 tier tariff system of injuries. Payments are made up of a tax-free lump sum payment and, for the more seriously injured, an ongoing tax-free index linked payment for life called the Guaranteed Income Payment.

2. From today the upfront lump sum payment for injury under the Armed Forces Compensation Scheme will be doubled for all injuries in the top six tariff levels. All compensation recipients, according to severity of injury, will have an uplift of between 10 and 100% in their lump sum payments. The Guaranteed Income Payment (GIP) will continue to apply in addition to the upfront lump sum compensation payment. The GIP will continue to provide the seriously injured with a monthly, tax-free income once they leave the Service. For example, a 25-year-old seriously injured soldier could receive a £570,000 lump sum payment plus a GIP of £19,000 per year tax free for life. If he were to live to average life expectancy, the GIP combined with the lump sum payments could total in excess of 1 million pounds.

3. The intention to increase AFCS payments was announced in the cross-Government Service Personnel Command Paper, published on 17 July 2008. Other key measures that will be implemented in the coming months include:

* The Department of Health improving access to NHS dentists for Service families;
* The Department for Innovation, Universities and Skills offering free A-Level equivalent or first Degree-level education for Service leavers with six years service;
* The Department for Transport offering free bus travel for seriously injured Service Personnel and veterans;
* The Department for Communities and Local Government helping Service leavers get on the property ladder by extending their Key Worker status for 12 months after leaving the Armed Forces.

4. The Service Personnel Command Paper can be read at:

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