Armed Forces and Reserve Forces (Compensation Scheme) (Consequential Provisions: Primary Legislation) Order 2013
(Limited Text - Ministerial Extracts only)
Read Full debate
Lord Astor of Hever
That the Grand Committee do report to the House that is has considered the Armed Forces and Reserve Forces (Compensation Scheme) (Consequential Provisions: Primary Legislation) Order 2013.
Relevant document: 20th Report from the Joint Committee on Statutory Instruments.
The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)
My Lords, I am introducing this legislation, which provides access to additional benefits for service and ex-service personnel who are entitled to a new benefit, to be known as the Armed Forces independence payment, or AFIP, which is to be introduced on 8 April this year. The new benefit is another example of the Government delivering our commitment to uphold the Armed Forces covenant. The Armed Forces covenant has two basic principles: that those who serve in the Armed Forces and their families should face no disadvantage compared with other citizens; and that special consideration is appropriate in some cases, especially for those who have given most, such as the injured and the bereaved.
Only recently the Government announced that they would make £6.5 million available to spend on latest-generation prosthetics. We are also improving rehabilitation services across the country for service personnel and veterans who are amputees. We are putting in place support and help for those who have suffered serious injuries in the line of duty, and AFIP will further enhance that support. It is important that we introduce AFIP and make sure that those most seriously injured receive this support.
In my mind, there are three key features. First, AFIP will provide ongoing financial support for the most severely injured. They will not have to be assessed or reassessed to access these payments. Secondly, this will simplify and streamline the support that service and ex-service personnel receive. It means that additional support can be offered based on an assessment already performed under the Armed Forces Compensation Scheme. Thirdly, all recipients will receive £134.40 per week, which will be tax-free and not means-tested. PIP will also be tax-free and not means-tested.
To explain the need for the order, it may be helpful if I provide some background to the new payment. In July 2012, the Prime Minister announced that the Government would simplify and enhance the financial support system for members of the Armed Forces who have been seriously injured, as part of the measures to uphold the Armed Forces covenant. Since that time, my department has been working closely with the Department for Work and Pensions to consider how such support could be designed. This close co-operation resulted in the design of AFIP.
At the initial design stages of AFIP, we sought feedback from ex-service organisations and charities via the Central Advisory Committee on Pensions and Compensation. This was to ensure that we had input from those who represent in-service and ex-service families and the bereaved. Those whom we contacted included the Royal British Legion, the War Widows’ Association, the British Limbless Ex-Servicemen’s Association and Combat Stress, as well as service members. The feedback received was valuable and helped inform the final design of AFIP.
Who will get this new benefit and the additional access to benefits that will accompany it? All service and ex-service personnel seriously injured since 6 April 2005 will be eligible. To clarify, the “seriously injured” are defined as those awarded a guaranteed income payment of 50% or more under the Armed Forces Compensation Scheme. It is important to note that AFIP will cover those with both permanent physical and mental injuries caused by service. It is the level of AFCS award that provides eligibility for AFIP. No additional assessment is undertaken and no further reassessment is required. This will provide ongoing financial security for the most severely injured. All those eligible will receive a flat-rate, ongoing payment of £134.40 per week. This will be tax-free and will not be means-tested. AFIP is to be introduced on 8 April this year. Seriously injured service and ex-service personnel who claim AFIP cannot also claim other disability benefits from the Department for Work and Pensions, including disability living allowance, personal independence payment and attendance allowance, no two of which can be claimed at the same time.
Other disability cost benefits, such as personal independence payment and disability living allowance, are used to provide access to a number of other benefits, schemes and services that are offered by other government departments, devolved Administrations and local authorities. These are often referred to in this context as passports. To ensure that AFIP recipients also have access to these additional benefits, we are bringing forward two packages of consequential amendments. The majority of these consequential amendments are to secondary legislation and so will form a package of regulations that was laid on 18 March this year. As for PIP, these included Motability, jobseeker’s allowance, legal aid, NHS costs, working tax credit, child tax credit, housing benefit and the council tax reduction scheme.
However, to establish access to three important passports, we are required to amend three other parts of primary legislation. That is what we are here to debate today. These minor but important legislative changes are in respect of carer’s allowance, Christmas bonus and the seatbelt exemption for medical reasons. The legislative change in respect of carer’s allowance will ensure that those who provide valuable support to seriously injured members of the Armed Forces in receipt of AFIP have access to DWP’s carer’s allowance, which will be £59.75 from April 2013. This change will specifically make provision for those who devote their lives to supporting our seriously injured people, providing some financial support for doing so. It is only right that a person caring for an AFIP recipient should have access to carer’s allowance.
As for the Christmas bonus, these provisions will ensure that all recipients of AFIP automatically qualify for the tax-free, lump sum Christmas bonus, which is paid annually by the Department for Work and Pensions. In cases where the injured serviceperson requires, on medical grounds, an exemption from wearing a seatbelt, the individual must hold a valid certificate of exemption from compulsory seatbelt wearing. Only a medical practitioner may issue this certificate. This amendment will enable the medical practitioner to seek reimbursement from the Department for Transport for the cost of medical assessment that is required in these cases. As I have set out today, these three minor, but important, new provisions are designed to ensure that our most seriously injured service and ex-service personnel are able to access the additional benefits and schemes that they deserve.
AFIP is another example of the Government’s commitment to uphold the Armed Forces covenant and deliver tangible benefits for members of the Armed Forces and veterans. AFIP will provide ongoing financial support for the most severely injured service and ex-service personnel on the basis of their Armed Forces Compensation Scheme award without assessment or reassessment. Furthermore, AFIP will provide them with passports to additional benefit schemes and services that are offered by other government departments, devolved Administrations and local authorities. The Government will track the progress of AFIP and will report on its implementation in the Armed Forces covenant report towards the end of 2013.
It is important that we address these issues, meeting the principles at the heart of the covenant, and that is why we propose to bring in AFIP for members of the Armed Forces and veterans who are seriously injured. I hope that the Committee will therefore be happy to consider the order this afternoon.
Lord Rosser
My Lords, I thank the Minister for his comprehensive explanation of the background to, and purpose of, this order. We support the principle of the Armed Forces independence payment, which is to be paid to those who have been most seriously injured, as well as the order that we are now considering and the access to the three important passports, to which the Minister referred. However, there are one or two points on which I should like clarification.
When the order was discussed in the other place earlier this month, the Minister of State, Mr Mark Francois, said that at the initial design stages of the Armed Forces independence payment, the Government sought feedback from ex-service organisations and charities via the Central Advisory Committee on Pensions and Compensation. He went on to say that the feedback received was valuable and helped to inform the final design of AFIP. However, paragraph 8 of the Explanatory Memorandum, which covers the consultation outcomes section, indicates a degree of division among the key ex-service organisations. It states that, while the organisations recommended change to only the eligibility criteria, they,
“disagreed with each other, some considering the eligibility criteria too narrow, others too broad”.
Therefore, I simply ask whether we are now in a situation where the ex-service organisations and service personnel have agreed on the eligibility criteria for the Armed Forces independence payment.
As the Minister said, the payment will be £134.40 a week, tax-free. As I do not think that it is in the documentation, can the noble Lord indicate how many seriously injured service and former service personnel are expected to receive AFIP, and how much more these personnel will receive each week with AFIP compared with the allowances or payments that they currently receive? Can he also indicate what the total additional cost per annum of AFIP will be compared with the cost per annum of the payments currently being made to the most seriously injured service and former service personnel in question?
However, I conclude by reiterating our support for the principle of the Armed Forces independence payment and for the order that we are now considering.
Lord Young of Norwood Green
My Lords, I hesitate to come in on this as it is not normally an area in which I would intervene, but I declare a previous interest as an ex-member of the Armed Forces Pay Review Board. I have a couple of questions to ask the Minister. He gave the definition of “seriously injured” and then went on to say, “50% or more”. Did I understand correctly that that is what qualifies someone for this allowance? The thought occurred to me that, inevitably, it is a bit of a cliff-edge assessment. If someone got to 49.9% there could be a problem, although that may not be the case.
The other aspect that I am interested in is the fact that an impact assessment has not been prepared for this instrument. There might be a perfectly rational response to that but, given the complication and the way in which this interacts with other legislation, I should have thought that even if it is not available now, there should be an impact assessment at some time.
Lord Astor of Hever
My Lords, this has been an interesting, short debate on a matter of great importance to the Armed Forces. I have tried to keep up with all the questions but if I cannot answer all of them I will write to noble Lords.
First, I thank the noble Lord, Lord Rosser, for the Opposition’s support for the order. The first question was on eligibility. As far as I am aware, the four charities from which we have had responses still differ with each other on eligibility. I have the issues on which they disagree, which are not very serious. Rather than reading them all out, I am happy to share them with the noble Lord afterwards. There is nothing of major importance. One of the main issues was on the definition of “seriously injured” in relation to the disability.
The noble Lord, Lord Rosser, asked about the net additional cost of AFIP. It is £134.40 per week—the same level as the maximum rate available under the personal independence payment. He asked how many people will benefit from the arrangements. Approximately 700 individuals are currently eligible to claim AFIP and we estimate that approximately 100 service and ex-service personnel each year will become eligible for it.
My noble friend Lord Addington asked whether we will feed what we have learnt from this into the issue of general benefits. I do not have an answer but I will write to him on that. The noble Lord, Lord Young, asked why the figure of 50% was chosen. The Armed Forces Compensation Scheme awards a lifelong income stream of 50% or higher of income pension for serious injury.
Putting in place provision to ensure continued support for those seriously injured while in the Armed Forces remains a key component of the military covenant. AFIP is an important change, showing the Government’s commitment to upholding the Armed Forces covenant. It is only right that we provide financial support for those most seriously injured and AFIP will do that.
Lord Young of Norwood Green
I asked why no impact assessment had been done on this instrument.
Lord Astor of Hever
I do not have an immediate answer but I will write to the noble Lord.