Patrick Hurley MP backs call to end ‘unjust’ treatment of military compensation
Southport MP Patrick Hurley has joined a cross-party letter to Chancellor of the Exchequer John Healey calling for the treatment of military compensation within the benefits system to be reassessed ahead of the Autumn Budget this Wednesday (28th October 2026).
Around 144,000 veterans and their families receive compensation for injury, illness or bereavement caused by military service. However, MPs have raised concerns that some of this compensation is treated as income when entitlement to means-tested benefits is calculated.
The letter argues that this can leave some of the most financially vulnerable veterans receiving less support despite living with injuries or illnesses sustained through their service.
The Royal British Legion has calculated that, as of March 2026, 4,120 veterans and widow(er)s receiving compensation could claim Pension Credit if their compensation was fully disregarded, meaning thousands could currently be no better off within the welfare system despite receiving compensation for service-related injury or illness.
The letter highlights the case of Staff Sergeant Pauline Cole, whose Pension Credit fell from £77 to around £11 a week after military compensation awarded for conditions resulting from her service was taken into account.
MPs have also raised concerns about inconsistencies in how military compensation is treated across different means tests, arguing that this can disadvantage some of the poorest members of the Armed Forces community.
The campaign points to the Armed Forces Covenant, which states that those who serve or have served, and their families, should face no disadvantage compared with other citizens in the provision of public and commercial services.
The letter asks the Chancellor to amend benefit regulations so that military compensation is no longer treated as income when entitlement to means-tested benefits is calculated.
Patrick Hurley, MP for Southport and the Northern Parishes, said:
“I fully support this call to reform a system that can leave veterans financially worse off simply because they have received compensation for injuries or illness resulting from their service.
“Cases like that of Staff Sergeant Pauline Cole show the very real impact this can have. Military compensation exists to recognise the sacrifices people have made in serving our country; it should not then result in some of the most vulnerable veterans losing other support they would otherwise receive.
“With the Budget approaching, the Government has an opportunity to address this issue and ensure our benefits system reflects the principles of fairness set out in the Armed Forces Covenant. I hope the Chancellor will give these proposals serious consideration.”
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