Explanatory note

This Order amends the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 (S.I. 2011/517) (“the principal Order”) to provide for a new benefit known as armed forces independence payment (“AFIP”) in the amount of £134.40 per week.

Article 2(4) inserts new articles 24A to 24F into the principal Order.

New article 24A sets out the conditions for an award of AFIP to be made.

New article 24B provides that entitlement to AFIP will cease upon conditions under article 24A failing to remain satisfied.

New article 24C provides that, where AFIP is payable in respect of the same period as certain social security benefits, a set-off will be made between them and only the balance (if any) of AFIP will be paid.

New article 24D provides for the Secretary of State to make arrangements for an amount of up to £55.25 per week to be paid out of AFIP on behalf of a claimant in settlement of liabilities under Motability arrangements. New articles 24E and 24F provide for the circumstances when the Secretary of State has, respectively, the power and the duty to terminate those arrangements.

Article 2(5) amends article 40(3) of the principal Order, relating to awards of damages, so that AFIP may not be withheld or reduced on account of damages.

Article 2(6) amends article 41 of the principal Order to provide that the Secretary of State may not withhold a proportion of AFIP on account of contributory negligence or misconduct.

Article 2(7) amends article 42 of the principal Order to provide that AFIP will cease to be paid on admission to the Royal Hospital, Chelsea.

Article 2(8) amends article 64 of the principal Order to provide for the date on which AFIP will become payable.

Article 2(9) inserts new article 65A into the principal Order to provide for AFIP to be payable every 4 weeks in arrears.