§ Mr. DismoreTo ask the Secretary of State for Defence whether the proposals for reform of(a) the pension scheme and (b) the compensation scheme in the Armed Forces (Pensions and Compensation) Bill are (i) individually cost-neutral and (ii) cost-neutral combined; and if he will make a statement. [153875]
§ Mr. CaplinThe costs of the new Armed Forces pension and compensation schemes have been and will continue to be assessed individually. However, there are links between the two schemes, as income payments from the pension and associated early departure schemes are offset against the loss of earnings income payments in the compensation scheme. Both schemes are considered to be broadly cost-neutral when compared with current provision. Benefits will be paid against entitlement from centrally management Government funds.
6W
§ Mr. DismoreTo ask the Secretary of State for Defence if he will make a statement on the estimate produced by the Royal British Legion of the likely number of cases that would fail under the provisions of the Armed Forces (Pensions and Compensation) Bill under(a) the proposed balance of probability test, (b) the proposed time limits for compensation claims and (c) both. [153876]
§ Mr. CaplinI have been in correspondence with the Royal British Legion about its assessment of the combined effect on recent War Pension claims of the changes planned for the new compensation scheme to time limits and standard of proof. We do not accept the Royal British Legion's analysis, which was based on a sample which was not representative of the full spectrum of claims. Nor do we accept that data for the time lapse between leaving service and making a claim under the War Pensions Scheme (WPS) can be extrapolated to the new scheme. We expect the timing of claims under the new scheme to take account of the time limit.
No work has been undertaken to assess how the particular provisions in the new scheme for time limits and standard of proof would have affected the decisions that we have taken on claims under the War Pension Scheme. Rather, our approach has been to consider the future requirement for a compensation scheme from first principles. We have sought to design a scheme which offers fair and proportionate compensation to anyone who, within a sensible timescale, can provide reasonable evidence that they are suffering from a condition due to service. The scheme will allow claims for specified late-onset conditions outside the limit, and will provide for exceptional review and an independent appeals tribunal. An independent review of our proposals commissioned from Watson Wyatt, a firm of actuaries and consultants, has confirmed that this approach is appropriate and reasonable. Copies of this report have been placed in the Libraries of both Houses entitled "Armed Forces Compensation Scheme—A report on the proposals for a revised compensation scheme for members of the Armed Forces".
§ Mr. DismoreTo ask the Secretary of State for Defence if he will make a statement on how the new tariff-based compensation scheme will(a) assess compensation for (i) injuries and (ii) financial losses consequent on injury and (b) be administered, with particular reference to appeal arrangements. [153881]
§ Mr. CaplinThe new scheme will assess compensation by matching an injury accepted as due to service to a tariff description and the corresponding fixed level award. For those injuries lying within tariff levels 1 to 11, where it is assessed that earnings capacity will be significantly affected, there will be an additional Guaranteed Income Stream, paid at graduated levels, up-rated for inflation, and based on salary at service termination. It will be paid for life.
Decisions in the scheme will be the responsibility of lay administrators, but with access to medical and legal advice. They will be evidence-based, reflecting case specific facts and contemporary generally accepted medical understanding. Adjudication guidance in the scheme will be published, with medical aspects externally validated.
7WThe new compensation scheme will be implemented by the Veterans Agency, which has considerable experience of assessing and determining claims for injury, illness or death due to Service. There will be an internal disputes resolution procedure for claimants who are dissatisfied with the decision on their claims. Following this, claimants can appeal to the independent Pensions Appeal Tribunal (who currently support the War Pensions Scheme). For appeals on points of law, a Social Security Commissioner will provide the new second tier of independent appeal, with a final level of appeal to the Court of Appeal.
§ Mr. DismoreTo ask the Secretary of State for Defence what types of injury case will receive(a) less and (b) more compensation under the new scheme proposed in the Armed Forces (Pensions and Compensation) Bill; and if he will make a statement. [153882]
§ Mr. CaplinA key principle of the new scheme is a better scaling of compensation to the level of disablement. The War Pensions Scheme provides neither awards that are reasonably proportionate to level of disablement nor significant up-front sums to help people adapt their lives to their new circumstances. However, the new Armed Forces Compensation Scheme for death, injury and ill-health due to Service provides lump sums for pain and suffering that are set out in a 15-level tariff, graduated for level of disablement, with substantial amounts payable, particularly at the higher levels. This also means that money will be available to help people adapt their lives. Where earning capacity is significantly impaired, there will also be a Guaranteed Income Stream (GIS), graduated according to level of impairment. For those with more minor conditions, which are not expected to have a significant impact on earnings capacity, a lump sum for pain and suffering is paid, but no GIS. Details of the compensation scheme, including example tariffs, have been placed in the Library of the House and can be found on the MOD internet site at: www.mod.uk/issues/pensions (A Framework Document For The Armed Forces Compensation Scheme for Injury, Illness and Death Due to Service).