Gen Dannatt said the military covenant was "out of kilter"
The head of the Army, Gen Sir Richard Dannatt, has welcomed moves by the government to improve the support offered to soldiers and their families.
Compensation for the most gravely wounded troops will be doubled and it will be made easier for them to take up education after they leave the forces.
The maximum compensation payment is to increase from £285,000 to £570,000, on top of an income payment for life.
Gen Dannatt said was a "good start" but urged ministers to go further.
"This is a very good start: there are certain clear, concrete, progressive things in the paper and the prospect of a lot more."
Duty of care
But Gen Dannatt, speaking at an event held by the centre-left Progress think tank, said the situation remained "slightly out of kilter" within the terms of the military covenant - the government's duty of care to soldiers who risk their lives for their country.
The measures outlined by Defence Secretary Des Browne
"The demands, legitimate demands, placed on the military to conduct operations in Iraq and elsewhere has placed quite a burden on us," he continued.
"That is fine provided there is a balance in our ability to look after the legitimate needs of individuals."
He added: "So I welcome the service command paper, as I have welcomed quite a number of other things that have happened in the last 18 to 24 months, as significant steps towards rebalancing our covenant.
"It was out of kilter, it's coming back into kilter, and I would like to see it brought further back into kilter."
The compensation measures, outlined in Parliament by Defence Secretary Des Browne, are part of a wider package aimed at ensuring personnel and their families are also better looked after in areas such as education and housing.
They include priority access to social housing for the injured, and guarantees that service personnel and their families retain their place on NHS waiting lists even if they are posted to a new base.
Any increase in the compensation package is wonderful. As far as we are concerned they [wounded service personnel] can never get enough
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