House of Commons - Defence

Select Committee on Defence Seventh Report

FINANCIAL ASSISTANCE

74. Despite all the detailed research discussed above and the genuine efforts being made by the MoD to put more information into the public domain, it is possible we may never find the answer to the causes of Gulf veterans' illnesses. What is important, though, is that those who have served their country feel that they are adequately compensated if they have suffered illness as a result of their service.

75. In the UK nofault compensation for Service personnel disabled as a result of their service is provided in the form of the War Pensions Scheme. This is administered by the War Pensions Agency (WPA), which is part of the Department of Social Security. The amount of pension payable is dependent on the degree of disablement, up to a maximum of £412.95 per week.[177] As at 31 October 1999, the WPA held details of 3,263 Gulf veterans who had made a claim for a war pension, of which 2,758 had been accepted, 179 rejected and 326 were under consideration or had lapsed.[178]

76. A veteran who applies for a war pension within seven years of leaving the Services benefits from a presumption in favour of the claimant, although a claim for a war pension can be made at any time.[179] When the then Minister for the Armed Forces appeared before us in April 1999, it was not clear whether the seven year rule would be waived for Gulf War veterans.[180] The Minister said then that this question was being considered as part of a wider review of pension arrangements.[181]

77. This comprehensive review of pension arrangements for Service personnel was announced by the then Minister for the Armed Forces in December 1997, as a joint exercise with the Department of Social Security (DSS).[182] It was originally intended to be completed by mid-1998. In March 1999, the Minister announced that it had proved more complicated than expected and a new target of mid-1999 was set.[183] The outcome of the review, which is intended to result in the publication of a consultation document, has still not been published. We appreciate that the whole issue of Service pensions is extremely complicated and that the present MoD/DSS review needs to take account of many factors. We also accept that there needs to be equity of treatment between Gulf veterans and other Service personnel claiming pensions. However, we believe there is a case for waiving the seven-year rule in relation to Gulf veterans because the nature of their illnesses means that it may be some years before symptoms, and their severity, are apparent. This waiver could be extended to other groups if their circumstances were comparable. The MoD should not use its overall review of pensions as a means of deferring action to assist Gulf veterans, and we look forward to an early announcement of the government's position.

78. Some veterans have complained of problems in dealing with the WPA. The NGVFA has expressed concern that the WPA was rejecting claims because it refused to accept 'Gulf War syndrome' as an identifiable medical condition.[184] We explored this in evidence with the then Minister for the Armed Forces (Dr Reid) in 1997. He told us—

185

In a Parliamentary answer in July 1998, the Chief Executive of the WPA clarified the position—

186

and he expanded on this in a letter to the NGVFA—

187

79. We have heard of cases of veterans going to considerable trouble in preparing documents and travelling long distances for appointments with the WPA to review their cases, only to be told on arrival that the review would not take place that day. There have also been complaints about papers being lost, delays in responding to correspondence and confusion over exactly which conditions are covered under War Pension arrangements. Our colleagues on the Social Security Committee published a report on the War Pensions Agency last Session.[188] The report praised the Agency staff for their professionalism and for fulfilling their target in clearing claims. However, the Committee commented—

189

It recommended, amongst other things, that the Agency should reduce the time taken to deal with appeals as a matter of priority and that it should improve its written communication with claimants.[190] An independent review of the decision-making and appeals process has been completed and the Agency has moved on to agreeing improvements to its procedures.

80. In Gulf Veterans' Illnesses: A New Beginning, the MoD gave an undertaking on war pensions—

191

The Gulf Veterans' Association's view of their relationship with the WPA was very positive—

192

In oral evidence, the Secretary of the Association reinforced this view—

193

81. We welcome the improvements which appear to have been made in the way the War Pensions Agency deals with Gulf veterans and, in the light of the recommendations made by the Social Security Committee last Session, we hope to see further evidence that effective claims and appeal procedures are in place.

Other forms of financial assistance

ARMED FORCES PENSION SCHEME

82. When the then Minister for the Armed Forces appeared before us in July 1997, he spoke of—

... the almost byzantine mechanisms for the payment of pensions, compensation, supplementary benefits and so on, to those who have served their country.[

194

In addition to War Pensions, veterans may also be eligible for an Armed Forces Pension Scheme (AFPS) occupational pension. This Scheme is administered by the MoD. Benefits are payable from both schemes where both departments accept that death or injury is attributable to service.[195] Regular Service personnel who are medically discharged may also be eligible for the payment of additional benefits under the AFPS, known as attributable benefits, which are based on their degree of disability. Since 1980, this provision has been extended to some categories of reservist personnel and is known as the Attributable Benefits for Reservists Scheme (ABRS). ABRS benefits can be paid when a reservist is medically discharged from a period of service in the volunteer reserve or immediately after the end of mobilised service.[196] The MoD told us that, as of 17 May 1999, two reservists were in receipt of ABRS arising from service in the Gulf conflict.[197] ABRS payments are being reviewed as a separate exercise from the wider review of pensions.[198] This will consider whether the circumstances in which ABRS payments are made should be broadened, which may affect outstanding claims from ex-reservists.[199] The MoD told us in December—

200

However, four months into the New Year, we have not yet seen the results of the review.

COMPENSATION

83. Our predecessors in the last Parliament took the view that —

... the time is ripe for a thorough re-examination of the system of compensation for Service personnel injured while on duty for their country.[

201

In 1997, the MoD set out its position on compensation as follows—

202

84. Under its compensation system, the MoD would be required to pay compensation if it was proved that an individual's death or injury was caused by its negligence, during wartime, but not when the claimant was actively engaging the enemy.[203] As at 30 November 1999, the MoD had received 1,817 notices of intention to claim from veterans and relatives for illness alleged to have arisen as a result of the Gulf conflict, but no detailed claims or writs had been submitted in these cases. 115 specific claims have been submitted for recognised medical conditions and these are being taken forward under standard procedures.[204]

85. When we took evidence from the MoD in April 1999, the then Minister for the Armed Forces (Mr Henderson) took the view that Gulf veterans should not be treated differently from other Service personnel—

205

86. Veterans' representatives told us of their reluctance to take the matter to the courts—

206

Our predecessors took the view that—

207

87. No progress seems to have been made since 1997 on compensation arrangements for Gulf veterans. We do not favour no-fault compensation in this one instance as we do not believe Gulf veterans should be treated differently from other Service personnel who have suffered injury or illness as a result of their service. However, we believe more should be done to assist veterans and their representative organisations in this respect. If the MoD is unable or unwilling to provide this assistance, veterans should be assisted by more appropriate government departments and agencies. The MoD should not use its position of strength in this area to the detriment of ill veterans and their families.

88. We have already announced our intention to conduct, later this Session, a wide-ranging inquiry into personnel matters in the Armed Forces.[208] Pension and compensation arrangements will form part of that inquiry.

CHARITABLE ORGANISATIONS

89. When we took evidence from him in April 1999, the then Minister for the Armed Forces paid tribute to the assistance given to Gulf veterans by the various ex-Service charities—

We know of the sterling work that is undertaken by the various armed forces families associations and the British Legion and other organisations in providing additional support.[

209

The Army Benevolent Fund has provided £1.7 million in financial support from its dedicated Gulf Trust and has assisted over 700 Gulf veterans and their dependants on the basis of perceived financial need. Grants have also been made from the Trust to assist veterans' associations, including the Gulf Veterans' Association and the National Gulf Veterans and Families Association. In the absence of other charitable assistance, the Trust has also been used to assist civilian personnel who worked alongside the Armed Forces during the conflict.[210] The Soldiers, Sailors, Airmen and Families Association (SSAFA Forces Help) and the Royal British Legion provide invaluable assistance to veterans including advice on applying for War Pensions and other financial assistance.[211]

CIVILIANS

90. The precise number of civilians seconded to British forces during the Gulf conflict is not known, but the MoD 'conservatively estimates' that the number of civilian contractors involved was in excess of 1,000 people, in addition to 931 MoD civilian staff.[212] Civilians who served with the Armed Forces in the Gulf are not entitled to pensions under the War Pensions Scheme nor the Armed Forces Pension Scheme, although they were subject to military discipline at the time. Civil servants are covered by the civil service pension scheme for death or injuries attributable to their duties. Civilians who are employees of contractors would be entitled only to common law compensation where they could prove the MoD was liable. Insurance for civilian contractors would have been a matter for their employing companies and would not have been purchased separately by the MoD.[213] As at 27 January 2000, 63 civilians had been seen by the MAP, three of whom had been diagnosed with identifiable medical conditions.[214]

91. It seems to us that if civilian contractors take on the obligations of service, for example in being subject to military discipline and wearing a uniform, they should also be offered protection under the Armed Forces welfare system, in respect of injuries or illnesses they may suffer as a result of their service, if they are not adequately compensated by other means. If current trends continue, civilian contractors are likely to play an increasing part in supporting Service activities. We believe the MoD should review and clarify its contractual arrangements with civilian contractors and their employers to ensure that they are adequately protected when deployed overseas with the Armed Forces.

92. We believe that the MoD had a duty of care to the civilian contractors who served in the Gulf and should have taken appropriate steps to ensure that they were covered by their employers' insurance if it was not prepared to offer cover to them itself. The numbers of civilians now affected by illnesses arising from their service in the Gulf is small and the financial burden on the MoD in relation to the Gulf conflict would not therefore be great. We therefore recommend that the MoD consider ways in which civilian contractors who served alongside Service personnel during the Gulf conflict, and who had no other form of insurance protection, can be adequately compensated for injuries and illnesses they sustained as a result of their service.

177 Sixth Report from the Social Security Committee, Session 1998-99, War Pensions Agency Business Plan 1999-2000, HC 377, para 2 Back

178 Ev p 90 Back

179 Gulf Veterans' Illnesses: A New Beginning, op cit, para 67; Q 91 Back

180 QQ 70-75; 106-110 Back

181 QQ 71 and 75 Back

182 HC Deb., 8 December 1997, cc 440-1w Back

183 HC Deb., 15 March 1999, c 502w Back

184 See Ev pp 92-93 Back

185 Minutes of Evidence, 29 July 1997, HC 222-i, Q274; see also QQ 260 and 264 Back

186 HC Deb, 31 July 1998, c 761w Back

187 Ev p 96 Back

188 Sixth Report from the Social Security Committee, 1998-99, HC 377, op cit Back