Council Budget to Credit their Service

As part of its draft Budget for 2026/27, which is expected to be approved for recommendation at its Cabinet meeting next week (12 February), Telford & Wrekin Council is proposing to use funding to ensure that armed forces veterans are not disadvantaged when means-tested for key benefits.

Published on: 6 February 2026
Credit their Service

Unlike civil compensation awarded by courts, such as personal injury or medical negligence compensation which is exempt from means testing, military compensation is considered income by local authorities in the UK when determining eligibility for benefits such as Housing Benefit, Council Tax Support, Disability Facilities Grants, and Discretionary Housing Payments.

Through its ‘Credit their Service’ campaign, the Royal British Legion is calling on local authorities to ignore military compensation when veterans are means-tested for such benefit entitlements.

Telford & Wrekin Council is committed to ensuring veterans are not disadvantaged by military compensation when assessing for means-tested benefits. The Council already disregards most military compensation and as part of its Budget proposals is now committing to go further and ensure those in receipt of taxable service-invalidating pensions (which are paid when someone leaves the military due to ill-health or injury not caused by their service) do not see this affecting their means-tested benefits including Council Tax Support, Housing Benefit and Disabled Facilities Grants. This will mean that no veteran in the Borough will see their benefit assessments impacted by military compensation.

Councillor Paul Davis, Telford & Wrekin Council’s Cabinet Member for Communities and Civic Pride, said:

“Our commitment to the Armed Forces Covenant is intended to ensure that those who serve, or have served, face no disadvantage compared to other residents, so we wholeheartedly support the Royal British Legion’s Credit their Service campaign.

“Telford & Wrekin Council already disregards most military service-related benefits, so we are now going one step further and will no longer be treating taxable service invalidating pensions as income when means-testing for benefits.”

Councillor Lee Carter, Leader of Telford & Wrekin Council, added:

“This Budget is about protecting people, whether that’s providing social care for those who need it most, or protecting our veterans from unfair disadvantage. I’m proud that, as a result of our strong financial management, we are able to recognise and credit veterans’ service at the same time as still keeping our Council Tax rates the lowest in the Midlands.”

Alongside supporting the Royal British Legion’s ‘Credit their Service’ campaign through discretionary funding, Telford & Wrekin Council’s proposed Budget for 2026/27 commits £150 million to supporting vulnerable children, people with disabilities and older adults, equal to 70p in every £1 the Council spends to provide care and support for people who need it most.

At the same time as keeping Council Tax the lowest in the Midlands, the Budget will also deliver £437 million in capital investment into the priorities residents value most, including better homes and roads, expanding schools, enhancing bus services, and supporting our high streets.

For more information about Telford & Wrekin Council’s support for armed forces personnel, veterans and families, visit www.telford.gov.uk/armedforces