Resettlement Grant Explained

The Resettlement Grant is a one-off tax-free payment when you leave the armed forces, provided you've served long enough to qualify for it.

It's worth knowing upfront that it's an alternative to the other exit payments rather than something you get on top of them. If you're entitled to an Early Departure Payment or an immediate pension, you'll receive that instead of the grant.

It's a fixed amount, so everyone who qualifies gets the same figure, and it goes up each year in line with armed forces pensionable pay. There's no income tax to pay on it and no restrictions on what you use it for.

Your resettlement courses, career advice and the IRTC grant are separate entitlements. You'll get those whether or not the grant itself applies to you.

Who is eligible?

Under AFPS 15 you need at least 12 years' service at your discharge date, and you must not be entitled to an Early Departure Payment, an immediate pension or another resettlement grant.

That second condition is the one that catches people out. If you leave at 40 or over with 20 years in, you'll get the EDP rather than this grant.

Under the older AFPS 75 the test was 9 years for officers and 12 years for other ranks.

It's worth asking Defence Business Services to confirm your qualifying service rather than counting the years yourself, because it isn't always the same as your total time served. It's also much easier to query while you're still serving.

What benefits does this provide?

  • A single tax-free cash sum: This is what the grant is — money, paid once, on discharge. It is not a package of services, and it does not come with training, counselling or job-search help attached.
  • A fixed amount, not a rank calculation: Everyone who qualifies gets the same figure. The last amount published on the MoD's own scheme pages is £11,651 (April 2018), uprated annually in line with armed forces pensionable pay — so check the current figure before you budget against it.
  • Tax-free: It is not subject to income tax, so the headline figure is what you receive.
  • Yours to use as you choose: There are no restrictions on what you spend it on and nothing to account for afterwards.
  • Separate from your resettlement package: Graduated Resettlement Time, the IRTC grant, CTP courses and career advice are all separate entitlements, arranged through your unit's resettlement staff. You get those whether or not you qualify for this grant.
  • An alternative to the EDP, not an addition: If you qualify for an Early Departure Payment or an immediate pension, that is what you receive instead.

How do I apply?

  • Check the exclusions first: Work out whether you are due an EDP or an immediate pension. If you are, the Resettlement Grant does not apply to you and there is nothing to claim.
  • Confirm your qualifying service: You need at least 12 years at discharge under AFPS 15 (AFPS 75: 9 years for officers, 12 for other ranks). Your qualifying service is not always the same as your total time served, so check it rather than assuming.
  • Expect it to be handled for you: The grant is administered through Defence Business Services as part of your discharge, rather than being something you find a form for. Raise it with your unit admin staff or resettlement adviser well before your discharge date.
  • Get your pension forecast: Ask for a forecast so you can see what you are due and on which scheme, and query anything that looks wrong while you are still serving and it is easier to correct.
  • Check the current amount: The figure is uprated annually, so confirm the current one on GOV.UK or with Veterans UK rather than relying on a published historical figure.
  • Ask the Forces Pension Society if it looks wrong: They give independent guidance on armed forces pensions, and a scheme or service-length dispute is worth raising before you leave.

Common questions

How much is the Resettlement Grant?

A fixed sum, the same for everyone who qualifies, uprated each year in line with armed forces pensionable pay. The last figure published on the MoD scheme pages was £11,651 in April 2018, so confirm the current amount before budgeting against it.

How many years do you need for the Resettlement Grant?

At least 12 years at discharge under AFPS 15. Under AFPS 75 it was 9 years for officers and 12 years for other ranks.

Can you get the Resettlement Grant and an Early Departure Payment?

No, it is one or the other. You qualify for the Resettlement Grant only if you are not entitled to an EDP, an immediate pension, or another resettlement grant.

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