Armed Forces Compensation Scheme Calculator 2026
Understand Armed Forces Compensation Scheme (AFCS) lump sum and GIP payments. Lump sums from £1,236 to £650,000 across 15 tariff levels. Guaranteed Income Payments for severe injuries.
Armed Forces Compensation Scheme (AFCS) Guide
AFCS pays lump sum compensation for injuries or illnesses caused by service after 6 April 2005. Severe injuries also receive Guaranteed Income Payments (GIP) — a tax-free monthly income for life.
Frequently Asked Questions
What is the Armed Forces Compensation Scheme?
AFCS provides tax-free lump sum compensation for injuries, illnesses, or deaths caused by service in the UK Armed Forces on or after 6 April 2005. Severe injuries also receive Guaranteed Income Payments (GIP) for life.
How much is the AFCS lump sum?
Lump sums range from £1,236 (tariff level 15, minor injury) to £650,000 (tariff level 1, most severe — loss of two or more limbs, severe brain injury, blindness). Awards are tax-free and index-linked.
What is a Guaranteed Income Payment (GIP)?
GIP is a monthly tax-free income for life, paid in addition to the lump sum for tariff levels 1-11. GIP is based on a percentage of annual salary at the time of injury: higher tariffs receive higher percentages (50% for tariff 1-4). GIP is index-linked to CPI.
How is tariff level determined?
A DWP medical adviser assesses the injury and determines the tariff level based on AFCS tables. Multiple injuries receive the highest tariff for the most severe injury, with additional percentages for further injuries. You can appeal decisions.
Does AFCS affect other benefits?
AFCS payments are disregarded for most means-tested benefits. GIP does not reduce Pension Credit, Housing Benefit, or Universal Credit. The lump sum may affect means-tested benefits as capital (rules vary).
What is the War Pension Scheme?
The War Pension Scheme covers service before 6 April 2005. It pays weekly pensions (not lump sums) based on degree of disablement, similar to IIDB. It is separate from AFCS and managed by Veterans UK.
Can I claim AFCS if I left the forces years ago?
Yes — AFCS claims can be made any time after leaving the forces, as long as the injury or illness was caused by or aggravated by service after 6 April 2005. There is no strict time limit, but prompt claims are advisable.
How do I apply for AFCS?
Apply through Veterans UK (part of Defence Business Services): phone 0808 1914 218 (free), email [email protected], or apply online at gov.uk. You will need service details, medical evidence, and to describe how the injury occurred during service.