Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 5 September 2024 to Question 3854 on Pension Credit: Armed Forces, if her Department will review the treatment of Armed Forces Compensation Scheme payments in means-tested benefits.

The receipt of War Pensions and Armed Forces Compensation Scheme (AFCS) awards is already fully ignored when calculating eligibility for Universal Credit.

The first £10 per week of a War Pension or AFCS award is disregarded in: income-related Employment and Support allowance; income-based Jobseeker’s Allowance; and Income Support. Armed Forces Independence Payments are fully disregarded in these benefits and can also allow the recipient to qualify for an additional disability amount. This contrasts with a benefit like Industrial Injuries Disablement benefit where there is no weekly disregard. Furthermore, these are legacy benefits, in the process of being replaced by Universal Credit, in which War Pensions and AFCS are ignored.

By default, the first £10 per week of a War Pension or Armed Forces Compensation Scheme is disregarded in Housing Benefit. Furthermore, a discretionary scheme allows local authorities to disregard them fully.

There are no plans to change the ways in which War Pensions and Armed Forces Compensation Scheme (AFCS) awards interact with means tested benefits.