Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will remove the requirement to set up a personal injury trust, placed on awards from Armed Forces Compensation Scheme for the purposes of Universal Credit, if claimants with such awards are to benefit from the capital disregard beyond one year.

Lump sum compensation payments under the Armed Forces Compensation Scheme are treated as personal injury capital and are disregarded for 12 months, reflecting longstanding rules across means-tested benefits and allowing time to protect funds intended to meet long-term needs. Where payments are placed into a trust or annuity, they are disregarded indefinitely, meaning the system already provides a mechanism to protect compensation in the long term.

Carers who provide unpaid care for at least 35 hours per week for a severely disabled person may get a carer element as part of their Universal Credit award. DWP is working with the Ministry of Defence to strengthen guidance and improve awareness, ensuring individuals understand their options to protect compensation at the point of award.