Changes to the Armed Forces Compensation Scheme from April 2026

April 2026 is bringing some particularly important changes to the Armed Forces Compensation Scheme (AFCS), which will have a significant impact on both active service personnel and veterans. These changes are very welcome and will help to reduce some of the barriers to claiming compensation by reducing delays, widening access to medical evidence, and increasing financial support where it is most needed.

Let’s take a look at the changes in more detail.

Mental health Claims

Claims for psychological injuries including anxiety, depression and PTSD historically needed an opinion from a consultant grade psychiatrist or psychologist in order for a payment of compensation to be made.  This often resulted in years of delay and significant cost to applicants.  The changes to the scheme now allow for a diagnosis from the following:

• Doctor
• Psychologist
• Mental health nurse

(As long as they are working as part of a multidisciplinary team overseen by a clinical lead consultant).

This change should speed up the claims process and make it more accessible, meaning decisions could be made faster and claimants could get earlier access to compensation. In turn, this will also help to reduce stress on claimants who are already dealing with the impact of their condition.

Increased lump sum payments

There is now an increased lump sum for the most serious of injuries and illnesses of £674,600 (with uplifted figures throughout the tariff scheme).

The increase represents a more realistic level of financial support for those who have sustained life-changing injuries, that will better help with long-term needs such as home adaptations, care and loss of future earnings.

Whilst no amount of money can compensate the impact a serious injury has on someone’s life, the higher payments do offer better financial security for the future.

Armed Forces Independence Payment (AFIP)

This tax-free benefit is paid to the most seriously injured personnel who have a serious and long-standing disability and their injuries have had an impact on daily living.  From April 2026 the weekly payment is being increased to £194.60.

Although not a dramatic increase, it does make a difference over time and brings payments more in line with the rising cost of living – a concern for many veterans and their families.

The increase will be particularly beneficial to those who rely on the support for additional costs such as care, mobility needs and day-to-day living expenses.

Fractures of the coccyx

The scheme has now been updated to include compensation for fractures of the tailbone (or coccyx) where surgical treatment is required and has caused significant functional limitations lasting longer than 26 weeks.

This is a positive change for those who have previously been considered to only have “minor” injuries – recognising that in some cases, coccyx injuries can have serious, lasting affects on an individual’s daily life.

The formal acknowledgement of this type of injury means individuals experiencing prolonged pain, mobility issues or having difficulty carrying out every day activities, can now get access to compensation.

Applicability of rates

Under the new changes, compensation rates will be applied from the time of determination, rather than the date the claim was made, which could result in claimants receiving higher awards.

This could open up the possibility of a reconsideration or appeal if the incorrect rates were applied to your claim by Veterans UK. If you believe an incorrect rate was applied, or your award does not reflect the updated tariff, it could be worth seeking legal advice.

Speak to a military injury claim expert

These latest changes to the Armed Forces Compensation Scheme are a positive step forward and will be welcomed by many active service personnel and veterans. They will create a fairer and more efficient system, offering claimants additional support and helping to ease the stress and anxiety of claiming compensation whilst managing a serious injury or illness.

At Ison Harrison we have an expert team of solicitors who can help you understand these changes and offer advice and support in making a claim to the AFCS.

To find out more contact us on 0113 224 7837 or email [email protected]