Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she has plans to change the classification of military compensation to bring it in line with civil compensation, in the context of what is categorised as a source of income for benefits means testing.

The receipt of War Pensions and Armed Forces Compensation Scheme (AFCS) awards is already fully ignored when calculating eligibility for Universal Credit.

This is in line with the treatment of civil compensation payments for personal injury, which are usually in the form of lump sum payments and are disregarded as capital.

Periodic payments of civil compensation (i.e. income) in consequence of a personal injury either ordered by the court or under an agreement are fully disregarded.

The first £10 per week of a War Pension or AFCS award is disregarded in: income-related Employment and Support allowance; income-based Jobseeker’s Allowance; and Income Support. Armed Forces Independence Payments are fully disregarded in these benefits and can also allow the recipient to qualify for an additional disability amount. This contrasts with a benefit like Industrial Injuries Disablement benefit where there is no weekly disregard. Furthermore, these are legacy benefits, in the process of being replaced by Universal Credit, in which War Pensions and AFCS are ignored.

By default, the first £10 per week of a War Pension or Armed Forces Compensation Scheme is disregarded in Housing Benefit. Furthermore, a discretionary scheme allows local authorities to fully disregard them.

In relation to Pension Credit, the first £10 of any War Pension payments or AFCS award made due to injury or disablement is disregarded. Four additions to the War Disablement Pension are completely disregarded: Constant Attendance Allowance; Mobility Supplement; Severe Disablement Occupational Allowance; and dependency increases for anyone other than the applicant or her/his partner.

War Pensions and AFCS awards are a qualifying income for the Savings Credit element of Pension Credit, which is available to those who reached State Pension age before April 2016. Armed Forces Independence Payments are fully disregarded in Pension Credit and can also allow the recipient to qualify for an additional disability amount.