Financial support
Being mobilised may affect your financial affairs. You need to be confident that while you are away your family will be properly provided for and that you will be able to continue making any regular payments, such as for your mortgage or insurance policies. There are regulations to ensure that you do not suffer significant financial hardship if you are mobilised.
- Loss of earnings and benefits
- Company cars
- Other expenses
- Self-employed Reservists
- How to make a claim for expenses or loss of earnings and benefits
- Pension and compensation benefits
Loss of earnings and benefits
If you are mobilised and your civilian pay is higher than your Service pay, then you can claim the difference. The difference is calculated as a daily amount.
You will also be able to claim for the daily cost of replacing certain benefits in kind that your employer suspends while you are mobilised, such as health insurance, educational fees for a dependent child or accommodation.
The overall amount you can claim for both earnings and benefits is not related to your Service rank; however, it is subject to a cap of £548 per day (equivalent to around £200,000 a year).
If you are serving as a Medical Consultant with the Defence Medical Services, the cap is £822 per day (equivalent to around £300,000 a year).
Company cars
If you have to return a company car while you are mobilised, and that car was the only car available for use by your spouse, partner or dependants, then you can claim a flat-rate allowance of £10.70 per day (roughly £325 per month).
Other expenses
The expenses for which you can claim are:
- costs for care of a dependent child
- costs for care of a dependent relative
- costs for care of a pet, excluding veterinary costs
- extra insurance for leaving your own home empty
- essential maintenance on your own home
Self-employed Reservists
If you are self-employed, you can claim as a Reservist for the difference between your Service pay and your earnings from your business. You can also claim as an employer to replace yourself while you are mobilised (see Financial assistance for employers).
How to make a claim for expenses or loss of earnings and benefits
You can make a claim for financial support at any time after the start of your period of mobilised service and up to four weeks after the last day of service. However, the earlier you make a claim, the earlier it can be paid.
To make a claim, you will have to supply the following information:
- your full name, date of birth, Service number and rank or rate
- written evidence of your earnings
- a statement from your employer that confirms that your earnings or part of them are being suspended for the period of your Call-out, and outlines which earnings, if any, you will continue to receive
- written evidence of your Service pay in the 52 weeks preceding your Call-out
- details of your health, medical or life insurance, school fees, accommodation costs, company car, and any other relevant benefits that your employer provides for you, your spouse or dependants
- a statement that any of the benefits above have been suspended for the period of your Call-out
- your employer's name, address, telephone number and a named contact there
- your National Insurance number
- your staff, works or clock number
- your contact details, including your permanent address, telephone number, any fax number and email address, and
- if you are making an allowable expenses claim, you will need to provide evidence to support any estimated costs, such as previous receipts or other information that might support your claim
These notes are to help you to understand the processes for claiming - no claims can be made or submitted on this website. You will be given detailed instructions about how to make a claim when you receive your mobilisation pack. If you have any questions in the meantime, speak to your Unit Admin Officer.
Pension and compensation benefits
If you are mobilised, you will be asked to opt for one of three pension arrangements:
- for the period of mobilised service to count towards the Reserve Forces Pension Scheme (RFPS)
- to remain in any civilian occupational or personal pension scheme
- or to join the State Second Pension (S2P)
The RFPS is an occupational scheme paid for by the Ministry of Defence (MOD).
If you choose to remain a member of a civilian occupational pension scheme, the MOD will pay the employer's pension contributions, provided you continue to pay the employee's element. You will need to provide the MOD with details of your civilian employment pension scheme.
Reservists or former Reservists can apply for compensation if they have an illness or injury and service in the Reserve Forces is the only or main cause.
The scheme under which you can claim depends on whether the period of service was before or after 6 April 2005. The schemes are administered by the Veterans Agency (www.veteransagency.mod.uk).
For more information about the pension options and compensation schemes download the Reserve Forces Pension and Compensation Benefits (PDF 838kb).
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