Explanatory note

These Regulations give effect to a new scheme for providing financial assistance to reservists and employers who suffer financial loss as a result of the mobilisation of reservists for permanent service in the armed forces. A reservist who is self-employed may claim in the capacity of a reservist, an employer or both.

A Regulatory Impact Assessment has been produced in relation to these Regulations: Changes to the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 1997 Statutory Instrument 1997 No. 309, published on the 24th January 2005. In addition a consultation paper of July 2004 (Financial Assistance for Reservists and Employers: A Discussion Document), is available from the Directorate of Reserve Forces and Cadets Secretariat, Ministry of Defence, Main Building, Horse Guards Avenue, Whitehall, London SW1A 2HB or on http://www.financialassistance.mod.uk/files/pdf/Discussion_Document.pdf

Under regulation 3 a reservist will, on production of the documentation prescribed in paragraph (1) of regulation 11 be entitled to claim an award, called a “reservist’s award”. This is to mitigate certain financial losses during the reservist’s relevant service, namely when his service pay is lower than his lost civilian pay and the cost to him of providing certain benefits which his employer had provided before his mobilisation. The amount awarded may not exceed the cap less the reservist’s service pay. The reservist’s award is capped at £548 per day (equivalent to £200,000 per annum), save in respect of accredited medical consultants who are serving with the Defence Medical Services as medical consultants for whom the cap is £822 per day (equivalent to £300,000 per annum), less the current service pay of the reservist. The reservist’s award is paid in arrears at the end of each calendar month.

Regulation 3 also sets out the benefits, the cost of re-provision of which by the reservist during the relevant period is to be included in the reservist’s award. The reservist may also receive payment for the loss of a company car that was at the disposal of his spouse or partner or any dependants, where there is no other car available to them. This payment is set at a flat rate of £10.70 per day.

Under regulation 4 a reservist may claim an “allowable expenses award”. Subject to the reservist furnishing an adjudication officer with the documentation prescribed in paragraph (2) of regulation 11, he shall be entitled to claim an uncapped award in respect of certain allowable expenses that have been incurred as a result of his relevant service and will cease at the end of the relevant period.

Regulation 5 deals with a reservist who is a member of an occupational pension scheme. If the reservist’s employer made regular payments into a pension scheme on behalf of the reservist, and these are suspended during the relevant service of the reservist, he may apply for a continuation of those payments if he elects to remain in that scheme and maintains such contributions as are required on his part. When making a claim under regulation 5 for continued pensions payments the reservist must supply the documentation required under paragraph (3) of regulation 11. A reservist may only claim under this regulation if his relevant date falls on or after the 14th April 2005.

By virtue of regulation 5 the person to whom such payments are made under regulation 5 for payment into a pension scheme must accept those payments as if they were contributions to the scheme by the employer, and must accept any contributions made by the reservist. Under this regulation the Secretary of State may also seek information verifying that such payments have been applied for the purposes for which they were awarded.

Under regulation 6 an employer is, on production of the documentation prescribed under paragraph (4) of regulation 11, entitled to claim an “employer’s award” in respect of the replacement costs incurred as a result of the relevant service of the reservist, up to a cap of £110 per day. In addition to the cost of replacing the reservist, the employer may also claim certain non-recurring costs of replacing the reservist.

Under regulation 7 an employer will, on production of the documentation prescribed under paragraph (5) of regulation 11, be entitled to claim an award for certain training that the reservist undertakes upon his return from relevant service. The training award is in respect of such training as the reservist needs to undertake for the performance of his employment as a result of his relevant service.

Regulation 8 sets out the time limits within which claims for awards must be made. Regulation 9 details to whom such claims must be made, and Schedule 3 sets out the addresses to which claims should be sent.

By regulation 10 a person may act upon his behalf if he has been authorised to do so in writing by the claimant, and the claimant has supplied a copy of that authority to an adjudication officer. In the event of the death of the claimant, or person who could have been a claimant had he survived, his personal representative may bring or pursue a claim on behalf of his estate.

Regulation 11 prescribes by reference to Schedules 1 and 2 the documentation and information that is to be supplied to an adjudication officer in respect of the various claims.

Regulation 12 concerns the determination and payment of claims. It requires an adjudication officer to consider claims promptly, provides for preliminary determinations to be made, and requires an adjudication officer to provide a claimant with written notification of the determination of his claim, together with reasons for the decision, an explanation of how any award was calculated and a notice that an appeal route is available.

By regulation 13 an adjudication officer may reject a claim on the basis of non-compliance with the Regulations. This applies where a claimant, without reasonable excuse, has failed to comply with any of the requirements as to production of documentation and information in support of a claim or any of the prescribed time limits.

Regulation 14 specifies the additional powers of an adjudication officer, including his ability to make an interim award, process a claim despite all of the required information not being available, or to review a determination. Such a review may be carried out up until the beginning of any appeal hearing against that determination, or for a period of 6 years after a determination, whichever is the earlier.

Regulation 15 provides for the withdrawal of a claim by a claimant.

Regulation 16 deals with the saving provisions and transitional arrangements for replacing awards claimed under the Reserve Forces (Call-out and Recall) (Financial Assistance) Regulations 1997, SI 1997/309 (“the 1997 Regulations”). It allows a reservist or employer of a reservist who is in relevant service when these Regulations come in to force who before the 14^th April 2005 has already claimed, or has had made, an award under the 1997 Regulations to continue to receive that award. It allows claimants to make claims under the 1997 Regulations that might have been made under those Regulations but have yet to be submitted, if any relevant time limits under those Regulations have not expired. It also permits reservists and employers of reservists who are performing relevant service when these Regulations come in to force to make new claims under these Regulations, in which case any award under the 1997 Regulations in respect of the same period must be taken into account.