Changes to the Armed Forces Compensation Scheme -

The Armed Forces Compensation Scheme (AFCS) was recently reviewed by the former Chief of the Defence Staff, Admiral the Lord Boyce. The Review found that whilst the scheme is fundamentally sound, there were several areas where recommendations were made for improvement.

The majority of improvements require detailed legislative amendment to the Scheme and will be implemented by February 2011. Some legislative changes arising from the Review can be made more quickly and will be effective from 3 August 2010.

These include:
• Extending the time-limits for injury claims from 5 to 7 years.
• Extending the time limits for bereavement claims from 1 to 3 years. A surviving spouse, civil partner or surviving adult will now have 3 years to make a claim. Claims in respect of bereavements that occurred more than 3 years ago will also be considered for a period of one year from the date of the new legislation (3 Aug 10).
• An increase in the maximum level of Bereavement Grant payable in the future from £20,000 to £25,000 for Regular Service Personnel - to reflect the increase in Armed Forces pay since 2005.
• An increase in the maximum level of Bereavement Grant for Reservists who are not members of a reserve forces pension scheme, to £37,500 to help bring their benefits in line with those applicable to Regular Service Personnel.
• An uplift of the majority of awards for hearing loss by one Tariff level.

Click here for more details.

Pay Information - A pay freeze for public sector workers has been announced in the Coalition Government’s Budget. The two year pay freeze affects any public sector employee earning more than £21,000 a year. The MOD has announced that around three-quarters of Service personnel (140,000) will be affected by the decision. Anyone on a pay level of £21,000 or less per year (before tax) will receive at least a £250 pay increase in any ‘freeze’ year.
Andrew Robathan MP, Minister for Defence Personnel, Welfare and Veterans, has commented on the matter stating that “most Service personnel” will still receive an annual increase in pay due to routine promotions.

It should be noted that the 2% pay award for military personnel in 2010/11, which was announced by the Armed Forces Pay Review Body in March, will not be affected by the pay freeze. In additional to these developments the Coalition Government plans to review Armed Forces pay in a fair pay review. The former Defence Secretary John Hutton will also lead a review on public sector pensions, to report next year. 

Reduced Rates for Mileage Allowances - The rates given for mileage allowances such as the Motor Mileage Allowance and Home to Duty etc were reduced aas of 1 April 2010. The MOD is aware of some sensitivity to the reductions and is considering appropriate action. In the longer-term, feedback from Service personnel and families should be made in the Armed Forces Continuous Attitude Survey (AFCAS).

NI credits for partners accompanying Service personnel overseas - From 6 April 2010 Service spouses and civil partners will be able to claim National Insurance credits, to maintain their National Insurance record, for time spent accompanying their spouse or civil partner on an overseas assignment.

These National Insurance credits will protect entitlement to the basic state pension and contribution-based social security benefits such as Jobseeker's Allowance, and Employment and Support Allowance.· All spouses and civil partners overseas are encouraged to apply for credits at the end of an overseas assignment. Click here to view the leaflet from the Department for Work and Pensions that·further explains this·development.

Changes to Child Maintenance Payments - As of 12 April 2010 child maintenance is to be completely disregarded for all parents with care receiving income-related benefits. This means that those people entitled to benefits and child maintenance can for the first time receive all of their maintenance without it af-fecting their benefit payments. Previously, parents with care in receipt of benefit have been allowed to keep the first £20 of child maintenance per week, ‘the disregard’, before their benefits are reduced. Since 12 April 2010 a full child maintenance disregard is applied, which means they can keep all the maintenance which is paid without it affecting their benefits. Visit the CSA website (www.csa.gov.uk) for full details on these changes.

Mortgage Toolkit - Give your finances a health check with the mortgage toolkit from MoneyMadeClear website. It only takes 5 minutes and will allow you to understand your options and plan ahead.

Doubling of Operational Allowance - The Prime Minister has announced that the Operational Allowance (OA) is to be doubled. The tax free allowance will increase from £14.51 per day to £29.02 and payments will be backdated to 6 May 2010. The bonus applies to those on a 6 month tour in an appropriate operational area. Click here for further details.

Inheritance Tax Exemptions for Veterans - Under Section 154 of the Inheritance Tax Act, the Joint Casualty and Compassionate Centre (JCCC), part of the Service Personnel and Veterans Agency, can grant exemptions from Inheritance Tax (IHT) on the estate of serving military personnel who die whilst on active Service against the enemy or other Service of a war like nature. Click here to find out more.

Divorce & Separation: Help with your Finances - A new website has been set up by the Financial Services Authority to provide impartial information and guidance to those going through a divorce or separation.  There are dedicated sections on living arrangements, dividing mutual assets and information for those with children. Click here to visit the website.

The Armed Forces’ Pay Review Body 2010 Report has just been released -

The key recommendations are outlined below, or to read the full document please follow this link.

Key Recommendations:
• A 2 per cent increase in military salaries;

• Targeted pay measures, including several aimed at those undertaking the most active service:

- Reduction in the Longer Separation Allowance minimum entitlement threshold from ten to seven days;

- Extension of Longer Separation Allowance to cover personnel operating under field conditions;

- Extension of Unpleasant Living Allowance to cover Service personnel in Forward Operating Bases and Patrol Bases in Afghanistan; and

- A set of additional Financial Retention Incentives for: High Threat Improvised Explosive Device Disposal Operators; Royal Electrical and Mechanical Engineers Class 1 Avionic Technicians; and Apache Helicopter SNCO Aircrew;

• A 2 per cent increase in Specialist Pay, Compensatory Allowances and Reserves’ Bounties;

• A 1.2 per cent increase to Grade 1 Service Families Accommodation and Single Living Accommodation rental charges and lower graduated increases below Grade 1;

• A Daily Food Charge of £4.13 (an increase of 1.5 per cent).

Payments under Armed Forces Compensation Scheme to Increase - The results of the comprehensive review of the Armed Forces Compensation Scheme, which will see higher payments to injured Service personnel, have now been published by the MOD. Click here for further information on the MOD website.

Changes to the PAX Scheme and the Service Risks Insurance Refunds Scheme (SRIPs) - After a thorough review by the scheme’s providers, it has been considered necessary to increase premiums for the PAX insurance scheme. From 1 March 2010 there will be a 10% increase in premiums for personal accident. From 1 February 2010, the eligibility criteria for SRIPs will be expanded to include the personal accident policies of those personnel deployed on land or airspace over Afghanistan who are required by their insurers to pay extra premiums to cover them whilst there. For further details visit: www.paxinsurance.co.uk.

Retrospective Recovery of Charges - JPA have identified what they believe to be a vast number of loss and damage charges, which have not been debited from some people’s pay accounts. Some of these charges date back as far as early 2007 and have been incurred for things such as Railcards, Cash Clothing and Loss of Stores charges. SPVA intend to debit these charges in Octobers pay.  All personnel are advised to check their pay statement carefully and if you are debited for a cost which you believe you have previously paid, contact your UPO Administrator for advice on the reimbursement procedure.

Court Ruling Supports Increased Compensation for Wounded Service Personnel - On 13 October 2009 the Court of Appeal made a landmark ruling concerning the MOD’s Armed Forces Compensation Scheme. Previously compensation was awarded on the basis of the individual injuries suffered in the line of duty, but the judges ruled that the long-term impact on the person’s life must be taken into account. Click here for further information from TimesOnline.

New Campaign Continuity Allowance- The latest Defence Internal Brief has detailed the terms under which personnel will recieve the Campaign Continuity Allowance (CCA). The allowance is given to those serving continuously for 9 months or more in certain posts where accumulated knowledge and long-term relationships are deemed critical to campaign success. Click here for further details.

Armed Forces Railcard - Changes to Terms & Conditions- Click here for up-to-date details.

Debt and Benefit Advice Clinics - Portsmouth’s Citizens Advice Bureau is offering Debt and Benefit Advice Clinics to  serving and retired personnel and their families. Clinics will be run at HMS Sultan and HMS Nelson on a fortnightly basis. Click here for full details.

Armed Forces Pay Review Body 2009

Here is a brief summary of the 2009 award -

• A 2.8 per cent increase in military salaries. 
• New Commitment Bonuses
• A reduction in the qualifying periods for Longer Separation Allowance
• New pay spines and Specialist Pay for Service Nurses
• A new RN Clearance Divers’ pay spine and two new supplementary rates of Diving Pay for EOD qualified Divers
• Targeted increases to Hydrographic Pay
• A 2.8 per cent increase in Specialist Pay, Compensatory Allowances and Reserves’ Bounties; and
• A 3.7 per cent increase to Grade 1 SFA/SLA rental charges and lower graduated increases below Grade 1

For more information visit the MOD website, or to view the full report click here.

Early Access to 'New Deal' for Service Partners, including those who are Not Married

If you are unemployed and available for work you may qualify for Jobseeker's Allowance and other benefits, depending on your circumstances. The New Deal scheme provides extra help to those who are considered to be at more of a disadvantage than others and now includes Service partners, including those who are co-habitating.

Read More...

Access to Contributory State Benefits for Spouses and Civil Partners of Members of the Armed Forces

The Government is committed to end any disadvantage that Armed Service causes for our Service personnel and their Service families. This commitment was set out in the Government’s Service Personnel Command Paper.

The principal concern for the Department for Work and Pensions (DWP) is to ensure that family dependents of Service personnel should not be put at a disadvantage when claiming benefits and allowances just because they are members of a Service family. For example, spouses and civil partners of Service personnel posted overseas may have difficulty finding work and paying National Insurance (NI) contributions. This may affect their entitlement to some state benefits, such as Employment and Support Allowance (ESA), Jobseeker’s Allowance (JSA) and the basic State Pension.

To ensure they are not put at a disadvantage when claiming benefits, the Government is considering awarding Class 1 National Insurance (NI) credits to spouses and civil partners of Service personnel posted overseas. For more information click here to view a DWP factsheet.

Long Service Advance of Pay (LSAP)
With effect from 1 October 2008 the requirement to impose a legal charge in favour of the MOD was removed and therefore Service personnel applying for a LSAP after this date have not been required to accept a second charge on the property they wish to purchase.

Read More...

Council Tax Relief

Council Tax relief has been extended to all troops on operations - click here to find out more