Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of exempting military compensation as income to ensure that veterans can still qualify for Pension Credit.

I refer the honourable member to the answer given on 18 November 2024 to question UIN 14156.

The first £10 of any War Pension payment or Armed Forces Compensation Scheme (AFCS) award made due to injury or disablement is disregarded in Pension Credit. Income is calculated on a weekly basis, so the disregard is £10 per week.

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.