This Statistical Notice provides summary statistics on recipients of compensation and new claims, awards and appeals made under the Armed Forces and Reserve Forces Compensation Scheme (AFCS).
The Armed Forces and Reserve Forces Compensation Scheme (AFCS) came into force on 6 April 2005 to pay compensation for injury, illness or death caused by Service that occurred on or after that date. It replaced the previous compensation arrangements provided by the War Pensions Scheme (WPS) and the attributable elements of the Armed Forces Pensions Scheme.
Under the AFCS, compensation payments include a tariff-based tax free lump sum for pain and suffering associated with the injury or illness, the size of which reflects the severity of the injury or illness. There are 15 tariff levels with associated lump sums. For more serious injuries, in addition to the lump sum, a tax-free index-linked income stream known as the Guaranteed Income Payment (GIP) is paid from service termination for life to recognise loss of future earnings due to the injury or illness. Under the AFCS, a claim can be made and awarded while still in Service.
Where death is caused by Service the AFCS provides an income stream known as the Survivor's Guaranteed Income Payment (SGIP). This is payable to the spouse, civil partner or adult dependant for life. Compensation is also paid to eligible children, known as the Child Payment (CP).
Figures presented in this Statistical Notice are calculated from data stored on the Service Personnel and Veterans Agency's Compensation and Pension System (CAPS).
AFCS user consultation
As a result of UK Statistics Authority (UKSA) recommendations, Defence Statistics have recently carried out internal and external customer consultations on the War Pension Scheme National Statistic and AFCS Official Statistic. As a result, additional figures have been included in this release on the following:
Defence Statistics will be making further improvements to future publications, including additional commentary to explain the context behind the numbers and trends. A full summary of the consultations and planned changes to the report can be found on the website.
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