WAR PENSIONS AGENCY BUSINESS PLAN 1999-2000
Joint MOD/DSS review of compensation arrangements
25. On 8 December 1997, Dr John Reid, the then
Minister of State for the Armed Forces, announced a comprehensive
review of compensation arrangements for service personnel. Dr
Reid said that the Government's aim was "to devise a modern,
fair and simplified scheme which could apply to all Service personnel
injured or killed on peacetime duties—in training or on
operations—where death or injury was attributable to military
service, to replace the current complex arrangements."[83]
The review will result in the publication of a consultation document.
The War Pensions Agency has had a role in informing this review.[84]
We consider it to be very important that the experience of
the War Pensions Agency should inform both the current review
and the consultation which follows. The original intention
was to complete it in time for the publication of a consultative
document in the Summer of 1998.[85]
On 15 March 1999 Mr Doug Henderson, the Minister for the Armed
Forces, conceded that the review had proved more complicated than
expected and had therefore taken longer than originally planned.
The new target was the publication of a consultation document
"around the middle of the year."[86]
In a written answer on 21 April 1999, the Minister stated that
the aim of the review "is to make proposals for a new compensation
scheme that could replace the current War Pension Scheme and the
attributable provisions of the Armed Forces Scheme. The War Pension
Scheme would, however, remain available for those who have already
left the Armed Forces including current war pensioners."[87]
Given that there are no time limits for making claims after leaving
service, it is likely that any new compensation arrangements will
exist alongside the current arrangements for a considerable period
of time.
26. We see the current review of compensation arrangements
as crucially important. It is essential that new arrangements
do not recreate what the Chief Executive described as "the
complexity and confusion" of the current scheme.[88]
Many of the problems identified by the ex-service organisations
result from this complexity. Mr Hextall told us that "rules
and procedures are old—the legislation is old legislation—and
developed for a situation that does not currently exist."[89]
The key Acts relating to war pensions were passed in 1916 and
1939. It is for this reason that officer ranks are treated differently
to other ranks. The method and frequency of payment of War Disablement
Pension is different and the level of War Widow's Pension is still
related to the rank held by the deceased husband in service.[90]
We were surprised to hear of the anachronistic treatment of
officers and other ranks. We believe that the current review provides
an opportunity to modernise the arrangements. The Government
envisages that legislation to enact a new compensation scheme
will be included in the 2001 Armed Forces Bill and that the scheme
will be introduced in 2003.[91]
The Minister for the Armed Forces told the Defence Select Committee
on 28 April 1999 that he wanted to ensure that changes encourage
speedier processing of claims.[92]
27. We fully support the Government's aim of devising
a modern, fair and simplified compensation scheme. We welcome
the fact that the current review of compensation arrangements
will result in the publication of a consultation document and
trust that the consultation will be conducted thoroughly.
83 HC Deb 8 December 1997, cols 440-441w. Back
84
Q 102. Back
85
HC Deb 17 December 1997 col 216w. Back
86
HC Deb 15 March 1999 col 502w. Back
87
HC Deb 21 April 1999 col 562w. Back
88
Q 102. Back
89
Q 20. Back
90
HC Deb 22 April 1999 col 632w. Back
91
Appendix 10. Back
92
See Minutes of Evidence taken before the Defence Committee, Wednesday
28 April 1999, on Gulf Veterans' Illnesses, HC 418-i, Q75. Back
| 
