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United Kingdom · Question · Written question

UIN 12993

Armed Forces Compensation Scheme

Original

answeredUnited Kingdom· UK Parliament· EN

Introduced

24 June 2026

Last action

1 July 2026 · Answer

Status

Answered

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Subjects

Defence

Source updated

1 July 2026

Defence

Summary

To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the impact of treating Armed Forces Compensation Scheme payments as income for means-tested benefit assessments.

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Timeline

  1. 24 June 2026

    Written question

    To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the impact of treating Armed Forces Compensation Scheme payments as income for means-tested benefit assessments.

    Source: Commons

  2. 1 July 2026

    Answer

    Lump sum compensation from the Armed Forces Compensation Scheme is not treated as income, rather as capital which Universal Credit disregards for 12 months and may be disregarded indefinitely when it is held in a trust or used to purchase an annuity. The ...

    Source: Written answer

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