It has been reported that a blunder at the Treasury has forced the Ministry of Defence (MoD) to ask for an extra £438 million from emergency funds to cover payments from the Armed Forces Compensation Scheme.
The error was exposed last week when Mark Lancaster, MoD parliamentary under-secretary, admitted an “inadvertent publishing error” had been made in a statement to the House of Commons.
The MoD conceded the Armed Forces Compensation Scheme was short by a massive sum.
This is a seriously worrying deficit, especially on the back of last week’s announcement by Secretary of Defence Michael Fallon, that the MoD will make payments akin to those awarded by the courts for those injured in combat – presumably around £5million for each of the most seriously injured.
If there is already a £438 million shortfall in the AFCS it doesn’t bode well for future payments matching those awarded by the courts.