15/12/2008

MoD Introduces Increased Compensation For Injured Personnel

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

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 £10 million 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, welcomed the news, saying: "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.

(JM)

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