Military allowances

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01   Discover My Benefits - new online tool for Service personnel and families

The MOD has launched an online tool to help Service personnel, their families & anyone interested in joining the Armed Forces discover the range of support & benefits available to them. For more details visit Discover My Benefits

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02   Making sense of military allowances

AFF is pleased that the MOD has recognised that military allowances can be complicated, and have produced this helpful, easy-to-read guide for soldiers and their families. The booklet provides information about the various expenses and allowances your soldier can claim. Take a look here.

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03   Armed Forces Pension Scheme 2015

Did you know that, since the new Armed Forces Pension Scheme 2015 (AFPS 15) was introduced, it now takes up to 30 working days from the day of your soldier’s discharge for all pension and compensation payments to be processed?

If your soldier has recently discharged from the Army you may be concerned that their pension, lump sums and any compensation payments are not being processed in the time you expected; this could impact on rent deposits or other costs associated with your move to civvy-street.

All Service personnel who are members of an Armed Forces pension scheme, and who will be serving beyond April 2015, will be automatically transferred to AFPS 15 unless they qualify for transitional protection i.e. were within ten years of the normal pension age for their respective scheme on 1 April 2012.

For more information on AFPS 15, click here

Tell AFF your view

Is the new increased 30-day payment process affecting you? Do you feel the timeframe should be returned to the 10-20 days it previously was? AFF wants to hear your views and experiences – contact us at

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04   Forces Help to Buy (FHTB) scheme

The Forces Help to Buy (FHTB) scheme is an advance of salary scheme, which is available to help Service personnel who want to buy their first home and to enable the option to self-build amongst eligible Service personnel.

Since 2014, Regular Service personnel have been able to take an advance of up to 50% of their gross annual salary (capped at £25,000), interest free, to purchase their own home.

The scheme aims to address low levels of home ownership in the Armed Forces, overcoming the disadvantages that mobility brings in line with the principles of the Armed Forces Covenant. It supports greater lifestyle choice and retention of personnel.

The pilot was initially planned to run for three years, but due to its popularity it has now been extended until 2022. AFF is pleased that the extension is now for a period of 3 years allowing families the certainty to plan ahead.

The loan is repaid through the Service person’s monthly salary, over a period of 10 years. You will be expected to live in the home whenever Service needs allow. It is taxable and soldiers should seek advice on the impact this will have on their monthly income.

Currently, payments have been made to over 18,000 applicants, totalling around £280 million, an average of approximately £15,555 per claim.

For more information, please read the full government guidance here Further information can be found in JSP 464 Chapter 12.

If you have any questions, comments or further suggestions, then please contact AFF’s Money & Allowances Specialist at or 07593 130364.

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05   MOD Ex-Gratia Payment in lieu of Maternity Allowance

If you are accompanying your spouse/civil partner overseas and fall pregnant, you may be entitled to an Ex-Gratia Payment in lieu of Maternity Allowance if you are prevented from claiming the normal Maternity Allowance. The MOD Ex-Gratia Payment in lieu of Maternity Allowance policy applies to eligible spouse/civil partners who accompany their Service spouses overseas to countries outside the EEA and where there is no reciprocal benefit agreement.

The Department for Work and Pensions restricts payment of UK Maternity Allowance to those who are living, and have worked, in the UK. If you do not meet the criteria for UK Maternity Allowance because you are not resident in the UK at the time of application, or your qualifying work was undertaken within the EEA, or in a country where there is a reciprocal benefit agreement, your claim will be dealt with by that country.  However, if you lived and/or worked in a country outside the EEC and one without a reciprocal agreement, the MOD may consider the payment of an ex-gratia payment in lieu of Maternity Allowance. There is no automatic entitlement and payment is at the discretion of the MOD, however the intent is to consider such requests favourably.

In all cases, regardless of where you live or have worked, the first application for Maternity Allowance should always be made to the Department for Work and Pensions. They will determine your entitlement to Maternity Allowance and will notify you how to proceed. If you receive notification that you may be entitled to an ex gratia payment from the MOD, you will need to claim via your spouse/civil partner’s Unit HR staff. Defence Information Note 2018DIN01-026 provides further guidance on how to do this; this is available to serving personnel and Unit Admin staff on the Defence Intranet.

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