One of the things you’ll need to sort out if you’re mobilised is making sure that regular bills, such as for your mortgage or insurance policies, continue to be paid. But lots of financial support advice is available.
Financial support for loss of earnings and benefits
If your civilian pay is higher than your Service pay, you can claim the difference (calculated as a daily amount). You’ll also be able to claim for the daily cost of replacing certain benefits in kind that your employer suspends while you are mobilised. These include:
- health insurance or medical care;
- life insurance paid by your employer;
- educational fees for dependent children;
- accommodation provided by your employer;
- other benefits provided by your employer.
The overall amount you can claim for in both earnings and benefits is completely unrelated to your Service rank. There is, however, 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).
Financial support - claim for certain allowable expenses
These expenses do not count towards the cap and include:
- costs for care of a dependant child;
- costs for care of a dependant relative;
- costs for care of a pet;
- extra insurance for leaving your home empty;
- essential maintenance on your home.
Any claims for allowable expenses must be in circumstances where the costs arise directly as a result from your mobilisation and are not already being incurred.
Company car allowance
If you have to return a company car while you’re mobilised, that was used by your spouse, partner or dependants, and there is no other car available to them, then you can claim a flat-rate allowance of £10.70 per day (roughly £325 per month).
What if you’re self-employed?
If you’re self-employed you can claim 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’re mobilised see Financial assistance for employers.
Pension and compensation benefits
If you’re mobilised, you’ll be asked to opt for one of three pension arrangements:
- for your period of mobilised service to count towards your Reserve Forces Pension Scheme (RFPS)
- to remain in any civilian occupational or personal pension scheme
- or to join the State Second Pension (S2P)
If you choose a civilian occupational pension scheme, the MOD will pay the employer's pension contributions, provided you continue to pay the employee's element. For more information about the pension options and compensation schemes download the Reserve Forces Pension and Compensation Benefits booklet.
Making a claim
For information on how to make a claim click here.
Financial assistance for your employer
Remember to tell your employer about the financial assistance available to them if you’re mobilised. This covers costs such as advertising and agency fees to find you a replacement, or overtime payments if other colleagues fill in for you You can find out more about what your employer can claim - Financial Assistance.