16.2 | Support for injured Service Personnel and veterans

146. For illnesses and injuries caused before 6 April 2005, compensation was provided

under two separate compensation arrangements, the War Pensions Scheme (WPS) and

the Armed Forces Pension Scheme 1975 (AFPS 75).

147. In September 2003, after a consultative process which began in 2001, the

Government announced that it would introduce a new Armed Forces Pension

Scheme (AFPS 05) (see Section 16.1) and a new compensation scheme.104 The new

compensation scheme would be introduced in April 2005 and would replace provisions

under the War Pensions Scheme and attributable benefits under AFPS 75.

148. Mr Ivor Caplin, the Parliamentary Under Secretary of State for Defence, told

Parliament that the new compensation scheme would have “more focus on the more

severely disabled” and would provide a lump-sum payment for “pain and suffering” –

a benefit that was not available under the current arrangements.

149. The new compensation scheme – the Armed Forces Compensation Scheme

(AFCS) – was introduced on 6 April 2005.105 The AFCS:

• Provided compensation for any injury, illness or death which was caused by

service on or after 6 April 2005. That included injury or illness which occurred

while participating in a “service related activity”, such as organised sport.

• Covered all current and former members of the Armed Forces, including

Reservists. For the first time, serving members of the Armed Forces could

make claims.

• In the event of service-related death, paid benefits to eligible partners and

children. An eligible partner was described as “someone with whom you are

cohabiting in an exclusive and substantial relationship, with financial and

wider dependence”.

• Provided lump sum payments and, for the most severe injuries and illnesses,

Guaranteed Income Payments (GIPs) to provide a regular income stream.

Those payments were made according to a comprehensive tariff reflecting, for

lump-sum payments, the severity of the injury or illness and, for GIPs, estimated

loss of future earnings. The most severe injuries and illnesses qualified for a

lump-sum payment of £285,000.

• Used the balance of probabilities standard of proof, in line with similar schemes

for civil claims.106

150. Public concern over the level of compensation paid to injured Service Personnel

grew in autumn 2007, following press coverage of the compensation awarded to Lance

Bombardier Ben Parkinson.107 Lance Bombardier Parkinson was severely injured in

104 House of Commons, Official Report, 15 September 2003, column 40WS.

105 Armed Forces (Pension and Compensation) Act 2004.

106 Ministry of Defence, Guidance: Armed Forces Compensation: What You Need to Know, [undated].

107 Ministry of Defence, Military Covenant: the Support Available to Current and Former Servicemen, 2008.

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