Armed Forces Compensation Scheme and War Pensions: Means-tested Benefits
The question
To ask the Secretary of State for Work and Pensions, whether the War Pension and Armed Forces Compensation Scheme will be categorised as income for means-tested benefits.
Answered by Sir Stephen Timms
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.
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. Furthermore, these are legacy benefits, in the process of being replaced by Universal Credit, in which War Pensions and AFCS are ignored.
There are no plans to change the ways in which War Pensions and Armed Forces Compensation Scheme (AFCS) awards interact with means tested benefits.
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