Question to the Ministry of Defence:

To ask the Secretary of State for Defence, if he will make it his policy to create a scheme to protect the financial settlements made under the Armed Forces Compensation Scheme for personnel with traumatic brain injuries; 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 (MOD) 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. As part of the AFCS package, this includes the free Money Advice Service, set up by the Government and run by the Consumer Financial Education Body.

Other financial tools have also been made available to the wounded sick and injured (notably Money Force). As part of the core recovery events various other education initiatives are undertaken, such as ‘you and your money’ modules. Further the MOD is working to establish a Service package that covers three core areas: financial capability education and training (throughout the Service career); financial guidance (directed towards AFCS recipients); and financial advice (provided by Independent Financial Advisors).

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.

Injured personnel and their families are also advised to get independent advice in regard to issues around the protection of personnel who are classified as vulnerable adults (in a legal sense). These have generally been managed from the Defence Medical Rehabilitation Centres as most cases are resident there for extended periods if their injuries are severe. Clinicians give opinion on cognitive ability and the legal protection process then commences, but this is not a military process. The chain of command has a responsibility to monitor and advise, but decisions often come down to the legal next of kin.