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Armed Forces Compensation Scheme (AFCS)

Changes to AFCS from 9th May 2011
AFCS general information
Key features of the Armed Forces Compensation Scheme
Frequently asked questions
Medical Discharge Cases

AFCS Claim forms
AFCS tariff
What if I want to make an appeal
Wider Benefits Potentially Available to AFCS Claimants

The Armed Forces Compensation Scheme - Communications Toolkit

To View the full legislation governing AFCS - click here

AFCS general information

The Armed Forces Compensation Scheme is the compensation package for members of the Armed Forces. It is designed to provide compensation, irrespective of fault, across the full range of circumstances in which illness, injury or death may arise as a result of Service on or after 6 April 2005.  The legislation replaced the previous arrangements under the War Pensions Scheme and the attributable elements of the Armed Forces Pension Scheme 1975.

The Scheme covers all Regular (including Gurkhas) and Reserve personnel. Compensation claims from serving personnel can be considered with tax free lump sum awards paid in service.

Ex-Members of the Armed Forces who served prior to 6 April 2005 or who are receiving a current War Disablement Pension or War Widows Pension are not affected by the scheme. They will continue to receive their War Pension or War Widows pension and any associated benefits.

The Armed Forces Compensation Scheme provides comprehensive arrangements with more generous benefits for the more severely disabled. It provides compensation for significant injuries, illness and death that are caused by service including when they result from warlike incidents or terrorism. It is a 'no fault' scheme which means that individuals still have the option to sue the MoD for negligence although compensation provided by the AFCS would be considered if a court directed that damages were to be paid.

Under the terms of the scheme a lump sum is payable to Service or ex-Service personnel based on a 15-level tariff which is graduated according to the seriousness of the condition. A Guaranteed Income Payment (GIP), payable for life, will also be paid to those who could be expected to experience a significant loss of earning capacity. A GIP will also be paid to surviving partners (including unmarried and same sex partners) where the service person's death was caused by service and in the case of unmarried partners a substantial relationship can be demonstrated.

How the tariffs work

The tariff levels are graded 1-15 dependant on the degree of severity. Level 1 gives the highest payment covering the most severe conditions. Level 15 covers less severe injuries such as minor burns or a dislocated knee. For those on levels 1 to 11 of the tariff, a GIP will be awarded. The GIP is calculated by multiplying the pensionable pay of the Service person by a factor which depends on age at last birthday - the younger the person the higher the factor because there will be longer to normal retirement age.

The final amount of GIP payable is a percentage dependent on the tariff level of the condition for which an award is made. Awards made in tariff levels 12 to 15 do not attract a GIP. The percentages are in four bands as follows:

Band A


tariff levels 1 to 4



Band B


tariff levels 5 to 6



Band C


tariff levels 7 to 8



Band D


tariff levels 9 to 11



Example 1:

A man aged 23 is invalided out of the Armed Forces having lost a foot as a result of service. He was receiving a salary of £20,000. The appropriate factor is applied for a person his age. The factor is 1.182. The full annual GIP is calculated as: Salary x GIP factor, ie £20,000 x 1.182 = £23,640.
As the injury is in tariff level 8 the person will receive 50% of the full GIP, so he will be entitled to £11,820 per year. This is tax free.

The Scheme is administered by the Service Personnel and Veterans Agency at Norcross, Blackpool. The SPVA is an executive agency of the Ministry of Defence and also manages the War Pensions Scheme. SPVA aims to provide comprehensive assistance and advice to service personnel and their families in accessing the scheme. The Agency is also the focal point within the MoD for providing information and advice on a range of issues of concern to veterans and their families.


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