Question to the Ministry of Defence:

To ask Her Majesty's Government what assessment they have made, if any, of whether future income prospects are adequately covered when claims under the Armed Forces Compensation Scheme are considered.

Where an individual has a lasting injury received as a result of service which has an ongoing impact on the amount they are able to earn over their lifetime in terms of both salary and pension, financial security is provided through a lifelong, tax-free, inflation-proof, income known as a Guaranteed Income Payment (GIP).

The GIP calculation takes account of both salary and age in determining the lifelong loss of earnings the individual is likely to face, both salary and pension, as a result of their service-caused injury or injuries. It also includes an enhancement for lost future military promotions. This calculation enables the Department to provide a payment that not only recognises final salary but also loss of future potential earnings.