The Department for Work and Pensions (DWP) administers the War Pension Scheme, offering tax-free payments of up to £12,471 annually to veterans who sustained an injury, illness, or condition during their Armed Forces service before 6 April 2005.
Who Qualifies & How It Works
- Eligibility: Applies to veterans with service-related disability before 6 April 2005.
- Disablement Assessment: A medical advisor evaluates each case, rating from 1% to 100%, where 100% indicates maximum severity.
- Payment Structure:
- Those assessed below 20% disablement receive a tax-free lump sum.
- Those with 20% or more receive ongoing tax-free payments, either weekly or monthly, depending on preference.
Payment Schedule & Rates
| Disablement Level (%) | Weekly Rate (£) | Annual Equivalent (£) |
|---|---|---|
| 100 | 239.00 | 12,471 |
| 90 | 215.10 | 11,224 |
| 80 | 191.20 | 9,977 |
| 70 | 167.30 | 8,730 |
| 60 | 143.40 | 7,483 |
| 50 | 119.50 | 6,236 |
| 40 | 95.60 | 4,988 |
| 30 | 71.70 | 3,741 |
| 20 | 47.80 | 2,494 |
These rates are effective until March 2026 and are adjusted annually in line with the Consumer Price Index (CPI) to reflect inflation.
Key Benefits of the Scheme
- Tax-free Income: Payments are not taxed and remain separate from other benefits.
- Regular Adjustments: Rates are updated annually based on CPI, preserving fairness and value.
- Wide Accessibility: Veterans from any Armed Forces branch may apply, ensuring inclusive eligibility.
- Flexible Payment Frequency: Opt for weekly or monthly payouts, according to your needs.
Application Process Overview
- Apply online through the government’s portal.
- Alternatively, request a paper form by contacting the Veterans UK Helpline (operating weekdays, 8 am–5 pm).
- Required documents include:
- Doctor or hospital treatment details
- Bank account and National Insurance number
- Service dates and branch details
- Copies of other benefits or compensation received
- Contacts for supporting advisers or charities, if any
- For UK Special Forces veterans, contacting the MoD A Block Disclosure Cell is necessary before applying, and you may need Express Prior Authority in Writing (EPAW).
The War Pension Scheme offers critical, tax-free financial support—up to £12,471 annually—for veterans affected by service-related conditions acquired before April 2005.
With automatic updates aligned to inflation and flexible payment options, this scheme provides an invaluable safety net. Veterans who meet the criteria should act now to apply and ensure they receive the compensation they deserve.
FAQs
Who is eligible for this payment?
Veterans with service-related disability before 6 April 2005 can qualify, based on a disablement assessment.
How much can someone receive?
At 100% disablement, the maximum is £239 per week—equating to £12,471 annually.
Are the payments taxable?
No—they are tax-free and also adjusted annually to keep pace with inflation.