Corporate report

Armed Forces Compensation Scheme progress report - January 2023

Updated 21 March 2024

This was published under the 2022 to 2024 Sunak Conservative government

The Armed Forces Compensation Scheme (AFCS) provides compensation for injury or illness caused or made worse by service; or where death is caused by service in the UK Armed Forces on or after 6 April 2005. The Scheme rules are set out in legislation, and the Scheme is administered by Defence Business Services Veterans UK. This update brings together a range of recent activities issues related to the Armed Forces Compensation Scheme intended to improve the Scheme and enhance delivery for those that use it, ahead of the publication of the Armed Forces Compensation Scheme Quinquennial Review in Spring 2023.

Appeals: The Armed Forces Act 2021

Through the Armed Forces Act 2021, legislation was passed to enable the Ministry of Defence to amend the late appeals rules for Service Personnel and veterans in Scotland and Northern Ireland lodging an appeal to the Pension Appeal Tribunals, and bring them in line with those in England and Wales. At present, the rules regarding when late appeals can be accepted are different, and more restrictive, in Scotland and Northern Ireland than the corresponding rules in England and Wales. Work is underway on the necessary secondary legislation to introduce the amended rules as soon as possible, as scheme rules for the Armed Forces Compensation and War Pension Schemes should apply in the same way to all claimants wherever they live in the United Kingdom.

Appeals: Direct lodgement

If an individual disagrees with a decision about their Armed Forces Compensation Scheme claim, they can appeal to an independent body: in England and Wales this is the First-tier Tribunal (War Pensions and Armed Forces Compensation Chamber). Like all administrative tribunals it is wholly independent of the decision-making body (Veterans UK). However, at the moment appeals against decisions taken by Veterans UK are made to them and then sent to the Tribunal, which gives the appearance that the Chamber is not wholly independent. The Ministry of Defence, including Veterans UK, have been working closely with the Ministry of Justice and HM Courts and Tribunals Service to introduce a new process in England and Wales similar to that which operates in Scotland: a process of direct lodgement, where appeals are lodged directly with the tribunal. HM Courts and Tribunals Service is aiming to introduce the new direct lodgement process in the War Pensions and Armed Forces Compensation Chamber in April 2023, subject to the timetable for implementing the necessary rule changes. The tribunal in Northern Ireland is also committed to the introduction of direct lodgement.

Cost of Living Payments

The Armed Forces Independence Payment (AFIP) is designed to provide financial support to Service and ex-Service personnel who have been seriously injured as a result of service. It is to cover the extra costs that may be incurred as a result of their injury. The Government Cost of Living package announced on 26th May 2022 included UK-wide support to help disabled people with the particular extra costs they are facing, with 6 million people who receive non-means-tested extra-costs disability benefits due to receive a one-off Disability Cost of Living Payment of £150. This included those in receipt of Armed Forces Independence Payment (approximately 1,200 veterans).

Transformation

The compensation processes in Veterans UK are still primarily paper based, which can make them time consuming and lacking in vital coherence between systems. A £40 million investment has been made to place the Pension and Compensation Schemes on a new digital platform which, as well as removing bureaucracy surrounding claims processing, will also create the single view of an individual across all areas of Defence Business Services. By the end of 2024 this single customer portal will be external facing and internet based to facilitate easy access by veterans. Greater sharing of data electronically and the ability to work on data files will be easier and quicker for caseworkers, leading to a much more efficient service.

Digitisation

Rather than wait until 2024, Veterans UK has taken steps to make processes digital where possible in the meantime. One key digital change is the development of a new online claim form for the Armed Forces Compensation Scheme. The new claim form is now live, following a successful pilot which achieved a satisfaction rating of 97% from a sample of 1,300 veterans.

Customer Engagement

To better understand underlying issues and trends Veterans UK has created a new bespoke Customer Engagement Team in August 22. This team is at the forefront of managing the most complex cases, as well as creating data to understand where Veterans UK can improve. Rather than just dealing with each case the Customer Engagement Team capture the lessons identified to identify issues that come up frequently. Having this insight will allow underlying causes of those issues to be addressed. The complaints process is being substantially overhauled, including the introduction of a new independent check once the business area has completed their review and onward transmission to the Parliamentary and Health Service Ombudsman should it be required.

The Customer Engagement Team have also been actively involved with events to learn from veterans and other stakeholders. In September 2022 Veterans UK hosted the 3rd Veterans Lived Experience event. With the first two events run virtually during the pandemic, this was the first event held face-to-face which was attended by 14 veterans. The event was deliberately small to enable focused conversations. Veterans UK has committed to holding further events for veterans, and with the professional communities who have an interest in the Armed Forces Compensation Scheme including legal and medical professionals.

Significant work has been undertaken this year to develop new performance metrics that focus on satisfaction with the experience of the Armed Forces Compensation Scheme claim process itself, rather the claim outcome. These performance metrics will allow identification of areas for improvement in the management of Armed Forces Compensation Scheme claims, and detection of areas where performance has degraded and may require remedial action. This satisfaction scoring will include ease of submitting a claim, understanding of processes, and communications.

Medical Advisors

Medical Advisors are employed by Veterans UK to review and request medical evidence where required on Armed Forces Compensation Scheme claims. In 2022 Veterans UK created a new Senior Medical Advisor role. This appointed individual is independent from the Medical Advisors, who can oversee their decisions and provide specialist advice and support as required. They will provide a vital independent link between the Medical Advisors and policy, legal, and medical policy staff. The post was advertised externally to attract the best possible candidates, and with the support of an independent adviser, the position has now been filled. The use of Medical Advisors and medical advice is also being considered as part of the Quinquennial Review of the Armed Forces Compensation Scheme.

Communications

A significant strand of improvement work in Veterans UK centres on improving and enhancing communication products. This includes work to create new “Journey Maps” of the claims processes and publishing them on Gov.Uk page, digital ‘Powtoon’ videos on how to apply for the Armed Forces Compensation Scheme and where to go for help on applications. There is significant work already underway to raise awareness of the Armed Forces Compensation Scheme and how to get help from Veterans UK, with more planned for the future.