Perthshire MP urges more help for service personnel on benefits

Feb 5 2010 by Iain Howie, Stirling Observer Friday

LABOUR politician Gordon Banks has called on local authorities to do their bit for former service personnel receiving benefits.

The Ochil and South Perthshire MP said the government had introduced a recommendation that those receiving Service Attributable Pensions (SAP) should not have this included in means testing for housing or council tax benefits carried out by councils.

But the recommendation is entirely discretionary, so Mr Banks said ignoring the pension would be “the right thing to do”.

He said: “I would urge all local authorities to disregard Service Attributable Pensions in the calculation of these benefits.

“We must do all we can to support these ex-service personnel – many of whom have fallen on hard times since leaving the armed forces.”

SAPs are paid out to servicemen or women who medically retired/discharged since April 1 1973 and who received a War Pension for the injury or invaliding condition that caused their medical discharge, such as an amputation. They should be entitled to either a Service Invaliding Pension (SIP) or a Service Attributable Pension (SAP). Both should be tax-free and are index-linked from date of award.

Those who received a War Pension between April 1, 1973 and March 31, 2004 should all have an SAP. If the pensioner had reasonably long service and a low degree of disability, he will have a SIP if it was more valuable than the SAP at the time.

For those who received a War Pension after April 1, 2004, the MOD takes a separate decision on whether, considering the evidence, the injury was likely to have been due to service; if not, a SAP will not be put into payment. However, if a SIP is in payment, the SIP becomes tax free from the date of War Pension award.