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Moneybox Saturday, 29 March, 2003, 14:38 GMT
Plans to cut war disablement benefits
Soldiers in Iraq
Final plans will be published before the end of June

The UK Government is planning to cut benefits paid to servicemen and women who are injured in the forces.

The new scheme would scrap the present system of War Disablement Pensions which are paid to 215,000 people who have disabilities caused by their time in the armed services.

Instead, anyone injured after the new scheme begins would claim compensation for the loss of earnings caused by their injury or illness.

The new scheme would give more compensation to some people. But it would be much harder to claim in the first place.

"Balance of probabilities"

Currently, if an ex-service man or woman has any disability it is assumed that it was caused by their service in the forces unless it can be shown "beyond reasonable doubt" that it had some other cause.

Under the new scheme, compensation would only be awarded if the disability was "on the balance of probabilities" due to service.

There would also be a shorter time in which to claim.

In 2002 there were 7500 new claims for war disablement pensions.

Concern

Around 5000 individuals are unwell due to their previous service in the Gulf... It could be that many of those would not get compensation under the new system

Terry English, Royal British Legion
The Government will not say how many fewer there would be under the new system.

But Terry English, Director of Welfare at the Royal British Legion, told the BBC's Money Box programme that more than half of the people currently getting war disablement pension would not have been compensated if the new rules had been in place.

"We believe in the worst case up to 60%.

"For example, there are something like 5000 individuals who are unwell due to their previous service in the Gulf.

"It could be that many of those would not get compensation under the new system.

However much sympathy one may feel for people who become ill... if that illness is not directly related to service, I do not think compensation should be paid

Minister for Veterans Affairs Dr Lewis Moonie

"In future it will become very subjective... it will be judged with different criteria, and they could say this would have happened anyway."

The Minister for Veterans Affairs Dr Lewis Moonie told MPs in December 2002 that he thought the present system was too generous.

"However much sympathy one may feel for people who become ill while they are in service, if that illness is not directly related to service, I do not think compensation should be paid" he said.

Door still open

However, after a meeting this week with the Minister, Terry English said he was encouraged some improvements in the new scheme might still be made.

"We are rather more optimistic.

"Dr Moonie implied the door remained open on the consultations that were taking place on this issue."

The Ministry of Defence told the BBC that final plans will be published before the end of June.

All existing awards will be honoured and the new rules will only apply to claims made for injuries which occur after the new scheme begins, probably in 2005 or 2006.

BBC Radio 4's Money Box programme was broadcast on Saturday, 29 March, 2003 at 1204 GMT.

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