Pensions and Compensation Explained

These are two different systems, and it's worth keeping them apart because they're claimed from different places.

Your pension is the Armed Forces Pension Scheme. You're enrolled automatically, you pay nothing in, and it pays an income when you take it. Pension enquiries go to Defence Business Services.

Compensation is for injury or illness caused by service. Which scheme applies depends on the date: the Armed Forces Compensation Scheme for service on or after 6 April 2005, and the War Pension Scheme for anything before that. Both are handled by Veterans UK.

The important bit is that they don't offset each other. A compensation award doesn't reduce your pension, and holding a pension doesn't stop you claiming compensation. You can have both.

Who is eligible?

Every serving member is in the pension scheme automatically, so there's no eligibility test for that beyond being in.

For compensation, you need to show the injury or illness was caused by service. The AFCS covers service on or after 6 April 2005 and has a 7-year time limit, normally running from the incident, from a condition worsening, from your first medical consultation, or from discharge — whichever comes earliest. The War Pension Scheme covers earlier service and has no time limit, though payments run from when you claim rather than when you were injured.

If you're medically discharged, an AFCS claim may be considered automatically without you submitting one.

You don't need to pay anyone to represent you. The Veterans Welfare Service and the service charities do this for free.

What benefits does this provide?

  • Armed Forces Pension: A non-contributory occupational pension. Every member of the armed forces is automatically enrolled and pays nothing in — the scheme is funded from the public purse.
  • Armed Forces Compensation Scheme (AFCS): Tax-free compensation for injury, illness or death caused by service on or after 6 April 2005, paid as a lump sum, with a Guaranteed Income Payment for the most serious injuries.
  • War Pension Scheme: For injury or illness caused by service before 6 April 2005, paid as an ongoing War Disablement Pension.
  • Supplementary allowances: Additional War Pension Scheme allowances for specific needs, such as mobility or constant attendance.
  • Survivor benefits: Pensions and lump sums for spouses, civil partners and eligible dependants.
  • Separate from other cover: An AFCS award is separate from your pension and from any PAX or life insurance payout — one does not offset another.

How do I apply?

  • Work out which scheme applies: Injury or illness caused by service on or after 6 April 2005 falls under the AFCS; before that date it falls under the War Pension Scheme. Your pension is separate again, under AFPS 75, 05 or 15.
  • Note the AFCS time limit: A claim must normally be made within 7 years of the incident, of a pre-existing condition worsening through service, of your first medical consultation for an illness, or of your discharge — whichever comes earliest. Exceptions apply where illness prevented a timely claim.
  • Gather your evidence: Service records, medical records, and any accident or incident reports.
  • Claim compensation through Veterans UK: AFCS and War Pension claims are handled by Veterans UK on behalf of the MoD — start from Apply for Armed Forces Compensation or a War Pension on GOV.UK.
  • If you are medically discharged: Your AFCS claim may be considered automatically, without you needing to submit one.
  • Send pension queries to JPAC: Armed forces pension enquiries go to the Joint Personnel Administration Centre, which is a different route from a compensation claim.
  • Expect an assessment: Veterans UK may gather further evidence or arrange a medical examination, then writes to you with the decision and its reasons.
  • Challenge a decision if it goes against you: You can appeal. Free, independent help is available from the Veterans Welfare Service and from service charities — you do not need to pay anyone to represent you.

Common questions

Can you claim both an armed forces pension and compensation?

Yes. They are separate awards and one does not offset the other. Your pension runs under AFPS, while injury or illness caused by service is compensated under the AFCS or the War Pension Scheme.

What is the difference between the AFCS and the War Pension Scheme?

The date. Injury or illness caused by service on or after 6 April 2005 falls under the Armed Forces Compensation Scheme. Before that date it falls under the War Pension Scheme.

How long do you have to claim armed forces compensation?

An AFCS claim must normally be made within 7 years of the incident, of a condition worsening through service, of your first medical consultation, or of discharge, whichever comes earliest.

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Last reviewed 26 August 2026 by Brittany Belt, Co-founder and COO