MoD announces proposals
to increase compensation for the most severely injured military personnel
MINISTRY OF DEFENCE
News Release (233/2007) issued by The Government News Network on 11
October 2007
The MoD has
completed its review of the Armed Forces Compensation
Scheme's multiple injury rules.
The Secretary of State for Defence, Des Browne, said:
"Our Armed Forces are unique in making a vital contribution
to the security of our nation and we have a responsibility to
continue to look after them properly when they get injured. This
review will benefit those with the most serious multiple injuries
- and they will be compensated for all their injuries up to the
full £285,000 lump sum payment."
Additional benefits will be paid to the most seriously injured
whose multiple injury claims have been paid since the start of the
scheme in April 2005. This will bring their lump sum awards to the
same level as those who will benefit from the proposed changes in future.
Under the new proposals, the lump sum compensation payment for
the most seriously injured will be based on the full rate for all
their injuries in a single incident, up to the highest lump sum of
£285,000. In addition, they will continue to receive the 100%
tax-free index-linked Guaranteed Income Payment for life.
The proposed changes follow the completion of a review into the
multiple injury rules of the scheme commissioned by the Under
Secretary of State for Defence, Derek Twigg, and have the full
support of the Service Chiefs of Staff. The Government continues
to look at ways in which we can further assist and support our
injured personnel.
Currently the most seriously injured receive lump sum
compensation payments for only the three worst injuries. Lump sum
compensation is paid at 100% for the first injury with the second
and third injuries being discounted to 30% and 15% respectively.
In addition, the most seriously injured receive a tax-free
index-linked 100% Guaranteed Income Payment to compensate for loss
of earnings. This can amount to hundreds of thousand pounds over
a lifetime.
The changes that are proposed are now subject to a period of
consultation, principally with the Central Advisory Committee on
War Pensions (CAC). The CAC includes representatives from
ex-service organisations including the Royal British Legion and
Combat Stress. This process will take around four weeks. Payments
will be processed as quickly as possible after this consultation
has concluded and the legislation has been amended, ideally before
the end of the year.
Notes to Editors
1. Unlike other compensation schemes, awards under the Armed
Forces Compensation Scheme (AFCS) are not capped. Immediate lump
sums for injury are payable while still in-service up to £285,000,
but there is no limit to the total money paid. The tax-free
index-linked Guaranteed Income Payment (GIP) has the potential to
amount to hundreds of thousands of pounds over an
individual's lifetime.
2. The increased payments will only be paid to those who are
assessed as the most severely injured i.e. those with multiple
serious injuries who qualify for the full (100%) Guaranteed Income Payment.
3. The lump sum component of the AFCS award is to recognise pain
and suffering and the loss of amenity. The Guaranteed Income
Payment is to recognise loss of earnings capacity and loss of
pensions. These are not designed to cover on-going medical care
which is provided by the NHS. AFCS recipients are also eligible to
claim for disability benefits from the Department for Work and Pensions.
4. The standard of proof used in the AFCS is based on the balance
of probabilities. This is the accepted approach in other Schemes,
such as the Criminal Injuries Compensation Scheme. No case should
fail where there is reasonable, reliable evidence that injury is
due to Service.
5. Full details of the AFCS can be found online at: http://www.mod.uk/DefenceInternet/AboutDefence/WhatWeDo/Personnel/Pensions/ArmedForcesPensions/AFCS/