Skip to main content

Written question asked by Rebecca Smith (Conservative) on Wednesday, 24 June 2026, in the House of Commons. It was due for an answer on Monday, 29 June 2026. It was answered by Stephen Timms (Labour) on Wednesday, 1 July 2026 on behalf of the Department for Work and Pensions.


Armed Forces Compensation Scheme

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.

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 Government remains committed to the principles of the Armed Forces Covenant and to ensuring that those who have served are not disadvantaged as a result of their service. That commitment is reflected in Universal Credit.


Secondary information

Type
Written question
Reference
12993
Session
2026-27
Related items
Grouped for answer
Yes
Subjects
Personal income Payments Means-tested benefits Armed forces compensation scheme
Link
View this Written question on www.parliament.uk