Armed Forces Compensation Scheme (AFCS) explained
The AFCS is the no-fault scheme that compensates serving personnel and veterans for an injury or illness caused by service on or after 6 April 2005. It is separate from your AFPS service pension, which is based on rank, pay and service. This guide explains the two awards, the full 15-level tariff, and how to claim. To estimate your own award, use the AFCS calculator.
Key takeaways
- The AFCS covers service-related injury, illness or death on or after 6 April 2005.
- It pays a tax-free lump sum (by tariff level) and, for serious cases, a Guaranteed Income Payment for life.
- Tariff lump sums run from £674,700 (level 1) to £1,283 (level 15) on the April 2026 figures.
- GIP is paid on levels 1 to 11 at 100, 75, 50 or 30% of salary, adjusted for age.
- There is normally a 7-year time limit, and you do not need a paid solicitor.
The two AFCS awards
Every AFCS award is built from up to two parts. The lump sum is a one-off, tax-free payment for the pain and impact of the injury or illness, set by a 15-level tariff. The Guaranteed Income Payment (GIP) is a tax-free, index-linked monthly income for life, paid only on the more serious levels, that reflects lost earning capacity. A minor injury might receive a lump sum alone; a life-changing injury receives the top lump sum plus the highest GIP band.
Awards are no-fault, so you only need to show the injury or illness was caused by service, not that anyone was negligent. You also cannot be compensated twice for the same injury, so any other payment for the same condition is taken into account.
AFCS tariff: all 15 levels (April 2026)
The assessor places your condition on the tariff using nine descriptor tables (burns; wounds and scarring; mental disorders; physical illness; amputations; neurological; sensory; fractures; musculoskeletal). These are the lump sums and GIP bands for each level on the April 2026 tariff.
| Level | Lump sum | GIP band |
|---|---|---|
| 1 | £674,700 | 100% |
| 2 | £502,496 | 100% |
| 3 | £406,273 | 100% |
| 4 | £310,051 | 100% |
| 5 | £187,100 | 75% |
| 6 | £149,680 | 75% |
| 7 | £96,223 | 50% |
| 8 | £64,148 | 50% |
| 9 | £42,766 | 30% |
| 10 | £28,867 | 30% |
| 11 | £16,572 | 30% |
| 12 | £10,691 | No GIP |
| 13 | £6,415 | No GIP |
| 14 | £3,207 | No GIP |
| 15 | £1,283 | No GIP |
GIP, AFIP and the age factor
The GIP percentage is set by the tariff band: 100% on levels 1 to 4, 75% on 5 and 6, 50% on 7 and 8, and 30% on 9 to 11. An age factor is then applied to the salary used, so a younger person discharged with the same injury receives a higher monthly GIP, because the loss of earnings runs for longer.
Where the GIP is 50% or more (levels 1 to 8), you automatically receive the Armed Forces Independence Payment (AFIP), which replaces Personal Independence Payment. If you also draw a medical discharge pension for the same condition, that pension is credited in full against the GIP, so the two are coordinated rather than simply added.
Claiming, fast payment and challenges
Claims should normally be made within 7 years of the incident, of an existing condition being made worse, of first seeking medical advice for an illness, or of discharge, whichever comes first. Seriously injured serving personnel can apply for a fast payment of up to £64,148 (the level 8 lump sum) within 6 months of the injury, without waiting for the full decision.
If you disagree with a decision you can ask for a reconsideration within 12 months, and then appeal to an independent tribunal. If your injury has not settled, Veterans UK can make an interim award and review it later. Free help is available from the Veterans Welfare Service and service charities, so a paid representative is not needed.
Frequently asked questions
James Hartley
James Hartley spent 22 years in the British Army, including unit personnel administration and pensions and records duties, and now writes the scheme guides and scenario pages on this site. He is not a regulated financial adviser, so the content is general information rather than personal advice.
Sources: gov.uk · GAD factors · Veterans UK · Forces Pension Society · MoneyHelper.