Disregard compensation paid to injured service personnel from UC calculation

Summary

Introduce legislation to disregard any payments made to ex-service personnel in the form of injury or income compensation from Universal Credit (UC) calculations, no matter in which manner this payment has been paid out (lump sum or ongoing payments) indefinitely. Some service members and ex-service personnel who are permanently injured lose Universal Credit after 12 months because their Armed Forces Compensation Scheme (AFCS) payments, and War Pensions are treated as capital. We believe this is disproportionate, forcing some families to spend money meant to cover long-term injury, illness, or loss of independence just to survive.

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