Patrick Hurley joins 100-plus MPs asking the Chancellor to stop means tests counting military compensation as income; 4,120 veterans could gain Pension Credit
Southport’s MP, Patrick Hurley, has signed a cross-party letter asking the Chancellor to stop treating military compensation as income when veterans are assessed for means-tested benefits.
The letter, dated Monday 26 October, went to the Chancellor of the Exchequer, John Healey, two days before the Autumn Budget on Wednesday 28 October. It was organised by Josh Babarinde, the Liberal Democrat MP for Eastbourne, and is co-signed by Lynda Atkins, National Chair of the Royal British Legion, and, the letter says, 102 more MPs from 11 political parties. (the signed letter, PDF)
What the letter says
Military compensation, from the War Pension and Armed Forces Compensation schemes, is paid by the government to help with the ongoing costs of an injury or illness picked up in service. The letter says 144,000 veterans and their families receive it.
The MPs’ complaint is about what happens next. Many means tests for welfare benefits count that compensation as income, the letter says, “while civil awards, such as personal injury or medical negligence compensation, are typically exempt.” In its words: “This means that some of the poorest members of the Armed Forces community are denied support their civilian counterparts receive, missing out on thousands of pounds a year.”
The letter also points to “inconsistent treatment of military compensation in means tests administered by the Government and local authorities”, which it says can leave the poorest veterans ineligible for some benefits.
The case of Staff Sergeant Pauline Cole
The letter is built around one veteran. Staff Sergeant Pauline Cole was injured while serving in Aden and was awarded military compensation. Once it was counted, her Pension Credit fell from £77 a week to £11, which the letter says left her “no better off” despite the extra costs her health brought. Patrick Hurley’s office puts the new figure at around £11 a week.
The letter says Pauline Cole died late last year, and that the campaign has carried on.
How many veterans it could affect
The Royal British Legion estimates that, as of March 2026, 4,120 veterans and widows or widowers receiving compensation for injury or bereavement in service would claim Pension Credit if their compensation were fully disregarded. The letter says thousands of veterans “could receive vital financial assistance” if the compensation were no longer means tested.
The MPs lean on the Armed Forces Covenant, the government’s promise that members of the Armed Forces community should “face no disadvantage compared to other citizens in the provision of public and commercial services”. The letter says means-testing military compensation breaches that promise, and asks the Chancellor to use the Budget to amend benefit regulations so that no member of the Armed Forces community has their compensation treated as income by any means-tested benefit.
What Patrick Hurley said
Patrick Hurley, the Labour MP for Southport and the Northern Parishes, said:
“I fully support this call to reform a system that can leave veterans financially worse off simply because they have received compensation for injuries or illness resulting from their service.
“Cases like that of Staff Sergeant Pauline Cole show the very real impact this can have. Military compensation exists to recognise the sacrifices people have made in serving our country; it should not then result in some of the most vulnerable veterans losing other support they would otherwise receive.
“With the Budget approaching, the Government has an opportunity to address this issue and ensure our benefits system reflects the principles of fairness set out in the Armed Forces Covenant. I hope the Chancellor will give these proposals serious consideration.”
He is one of 18 Labour MPs among the signatories. Other Merseyside signatories include Kim Johnson (Liverpool Riverside), Paula Barker (Liverpool Wavertree) and Marie Rimmer (St Helens South and Whiston). Most are Liberal Democrats, with Conservative, SNP, DUP, Green, Plaid Cymru and independent MPs among the rest.
What it means for you
Nothing changes yet. The letter is a request, and any change would need the government to amend benefit regulations. The Budget on Wednesday 28 October is the first point at which the Chancellor could respond.
If you are a veteran, or the widow or widower of one, and receive a War Pension or Armed Forces Compensation Scheme payment, the letter’s argument is that it may currently be reducing means-tested benefits such as Pension Credit. Whether it does in your case depends on the benefit and the means test involved, as the letter itself notes the treatment is inconsistent. The Royal British Legion, which co-signed the letter, offers advice to the Armed Forces community.
Have your say