Question to the Ministry of Defence:

To ask the Secretary of State for Defence, if he will take steps to ensure that service personnel who receive compensation payments as a result of injuries on active service are protected from financial exploitation in cases of brain injury; and if he will make a statement.

The Armed Forces Compensation Scheme (AFCS) provides compensation for illness and injuries, including brain injuries, caused by service from 6 April 2005. All recipients are awarded a lump sum for pain and suffering. In the event of serious injuries, an income stream, known as the Guaranteed Income Payment, is also paid.

The Ministry of Defence is legally obliged to pay any AFCS award direct to the claimant. However, as part of the accompanying notification process, injured personnel and their families are advised to obtain independent financial advice. In the case of serious injury, the single Service, the individual, the family and the Veterans Welfare Service work together to protect the long term interests of the individual and their family.

Separately from the AFCS, under the Mental Health Capacity Act of 2005, if it is believed the individual lacks the capacity to make financial decisions themselves, it is possible to make and obtain power of attorney which allows nominated individuals to manage the financial affairs of an affected person.