Pensions Appeal Tribunals Act 1943 (Time Limit for Appeals) (Amendment) Regulations 2011

Lord Grantchester Excerpts

Wednesday 27th April 2011 Grand Committee

[The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Astor of Hever)]

My Lords, I start by paying tribute to the brave men and women of our Armed Forces. They deserve our admiration but, more than that, they deserve to be treated with respect, and they rightly expect the nation to honour their commitment. We have a duty to those injured due to service to provide a just and fair compensation scheme for them.

The Armed Forces Compensation Scheme came into force on 6 April 2005 to pay compensation for injury, illness or death caused by service. This provides lump-sum payments and, for the more seriously injured, a guaranteed income for life. It replaced the previous compensation arrangements provided by the War Pensions Scheme and the attributable elements of the Armed Forces Pension Scheme.

The new scheme is a significant improvement on the previous arrangements. Injured service men and women are now able to claim compensation while they are still in service. The previous Government should be commended for introducing the scheme in 2005, as well as for initiating a review of the Armed Forces Compensation Scheme in 2009 to ensure that it continues to support the needs of the Armed Forces.

On 10 February 2010, the then Secretary of State announced the outcome of the review conducted under the independent chairmanship of the noble and gallant Lord, Lord Boyce. I am very grateful to him for the thorough way in which he conducted the review and for producing such a meticulous report. The Ministry of Defence committed to implementing all his recommendations within a year. The more straightforward changes were put in revised legislation in July 2010. The more detailed recommendations were laid in new legislation on 28 February 2011. The two affirmative instruments for debate today complete the legislative changes required to implement the full package of changes.

The first statutory instrument relates to time limits for appeals if an individual is not happy with the decision made on a compensation claim. The intent is to extend the time limit for appealing decisions made under the AFCS from six to 12 months. This recognises that the nature of service life may prevent claimants picking up their mail and making an appeal within the current time limit of six months. For appeals heard in Scotland and Northern Ireland, this requires Section 8 of the Pensions Appeal Tribunal Act 1943 to be amended. The first affirmative statutory instrument that we are discussing today makes the required amendments to this Act. The time limits governing appeals about AFCS awards heard in England and Wales are provided in the Tribunal Procedure Rules. These rules have been amended to increase the time limit for appealing to 12 months, with the changes coming into force from 9 May. To ensure consistency and fairness, this affirmative instrument also increases the time limit for bringing appeals in respect of all other types of decisions capable of appeal under the Pensions Appeal Tribunal Act 1943, including decisions made in relation to the War Pensions Scheme.

The second statutory instrument is on the subject of rights of appeal. The intent is to make it clear that two types of new decision under the scheme do not carry appeal rights. The first relates to claims for a fast payment. This is a new provision introduced to enable those who have a serious injury due to service to receive an early payment before going through the full compensation claim process. This helps to provide them and their families with some early financial support and reassurance during what can be a very difficult time. If the final award is less than the value of the fast payment, no money will be recovered. Where additional money is payable, the balance is transferred to the claimant. The decision on the final award carries appeal rights. As the fast payment decision is not a final decision, the instrument being debated today excludes fast payment decisions from the list of decisions capable of being appealed. Not to make this change would result in a rather confusing system for claimants.

The second new type of payment is for medical expenses incurred abroad by seriously injured personnel who decide to live permanently outside the UK within a year of leaving the Armed Forces. This power broadens the scope of the scheme. As the noble and gallant Lord, Lord Boyce, recognised in his report, this new power is discretionary, so it would not be appropriate for it to have external appeal rights but rather an individual would be able to request the MoD to reconsider its decision. This remains open to individuals if they are not content with the decision made on their behalf.

These two statutory instruments are the next step in ensuring that the AFCS remains fit for purpose for our service personnel. I beg to move.

[Lord Grantchester]

I join the Minister in paying tribute to all the brave men and women who serve in our Armed Forces. They deserve our respect and admiration and rightly expect society, through government, to honour commitments to them, especially to those injured in service.

I thank the Minister for his explanation of these regulations. These Benches endorse his remarks and support enactment. We agree that the new scheme is a significant improvement on previous arrangements. As the Minister explained, the two instruments complete the legislative changes required to implement the full package following the review undertaken by the noble and gallant Lord, Lord Boyce. I understand that the review team spoke to and received comments from over 200 individuals and groups, including serving members of the Armed Forces, their families, reservists, veterans and the general public. The noble and gallant Lord, Lord Boyce, and his team visited serving Royal Navy, Army and RAF personnel in their bases as well as at Headley Court. The noble and gallant Lord also spoke to Ministers, the Chief of the Defence Staff, the heads of the three services and the judiciary. The review concluded that the basic principles of the Armed Forces Compensation Scheme were correct. However, it found areas where further improvements needed to be made. The review findings have been well received. Ministers have agreed to implement all the recommendations. The Minister has today outlined the key areas regarding compensation and appeals.

However, there are other key recommendations that were also agreed to be taken forward, and I shall ask the Minister about two of them. First, there was a recommendation to set up a new expert medical body to advise on compensation for particular illnesses and injuries, such as hearing loss and mental illness. Will the Minister update us on the latest position regarding this new body? How many people will sit on it? Who will lead it? How will it operate and how extensive will its role be?

Secondly, the review recommended that there should be improvements in communication to service personnel and their families to promote a better understanding of how the scheme works, including entitlements, and how the calculations behind those entitlements are made. This should not only increase awareness but raise confidence among our armed service personnel that their welfare is important. I ask the noble Lord to assure us that this matter is also being attended to.