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Written question asked by Desmond Swayne (Conservative) on Tuesday, 19 May 2026, in the House of Commons. It was due for an answer on Monday, 1 June 2026 (named day). It was answered by Stephen Timms (Labour) on Monday, 1 June 2026 on behalf of the Department for Work and Pensions.

Universal Credit: Veterans

Question

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of the 12-month limit on capital disregard applied to Armed Forces Compensation Scheme lump sum payments in Universal Credit on injured veterans and their families with caring responsibilities when a personal injury trust has not been entered into.

Answer

Lump sum compensation payments under the Armed Forces Compensation Scheme are treated as personal injury capital and are disregarded for 12 months, reflecting longstanding rules across means-tested benefits and allowing time to protect funds intended to meet long-term needs. Where payments are placed into a trust or annuity, they are disregarded indefinitely, meaning the system already provides a mechanism to protect compensation in the long term.

Carers who provide unpaid care for at least 35 hours per week for a severely disabled person may get a carer element as part of their Universal Credit award. DWP is working with the Ministry of Defence to strengthen guidance and improve awareness, ensuring individuals understand their options to protect compensation at the point of award.

Secondary information

Type
Written question
Reference
2681
Session
2026-27
Grouped for answer
Yes
Subjects
Carers Injuries Lump sum payments Universal credit Armed forces compensation scheme Veterans
Link
View this Written question on www.parliament.uk