Compensation Tag

A new compensation scheme has been announced for military personnel affected by increases in Scottish tax – an issue that was flagged up by the Naval Families Federation.


When Scotland’s new income tax regime came into force earlier this year, anyone who lived in Scotland and earned more than about £26,000 started paying more income tax than they would do if they lived elsewhere in the UK.


It is thought that around 8,000 serving personnel fall into that category.


When the Scottish government first announced its ‘progressive’ system, the Naval Families Federation acted on behalf of Naval Service families and conveyed their concerns to Defence ministers.


We firmly believe that serving personnel north of the border should not be worse off than colleagues who are posted elsewhere, and that all should be treated equally.


The NFF is delighted that the MOD has listened and responded with the new scheme of ‘mitigation payments’ announced by Defence Secretary Gavin Williamson today, which will see affected personnel receive a compensation payment ensuring all serving people effectively pay the same rate of tax, wherever they work, in the current tax year.


Only Regular personnel whose main place of residence is in Scotland and who are worse off by a minimum of £12 a year will be eligible, while a cap of £1,500 has also been set.


The payment will be retrospective, ie paid after the end of the 2018-19 tax year, and the scheme will be reviewed on an annual basis by the MOD. More details of this year’s scheme will follow later in the year.


This is a great example of how the NFF acts as a bridge between our community and the Government to promote equality for you and your family. We will continue to monitor changes in policies to act on your behalf.


For those in the Armed Forces, details are available in a Defence Internal Brief, serial number 2018DIB/08.


You can access BBC’s news article on the compensation scheme here.


Posted on: 19th July, 2018
Updated on: 6th August, 2018


The SFA Compensation Scheme will continue under the FDIS Accommodation contracts and will be administered and funded by the suppliers when they are at fault. Requests for compensation can be raised through this page.



Message from DIO:


Last week we alerted you to an urgent issue where VIVO’s system was not receiving appointments being transferred by Pinnacle. Since then, we have worked hard with our suppliers to understand the causes, reduce the impact on families and find a resolution.


Unfortunately, the issues are impacting families through missed appointments, and we understand how frustrating this is for families.


VIVO has reported 1733 missed appointments due to this issue that have affected 1125 families. The technical teams have identified the causes of the problem and fixes are currently being deployed. While it will take a few days to permanently fix the underlying issue, a business continuity plan (BCP) has been implemented with a temporary solution while the permanent solution is put in place. Early feedback suggests this has significantly reduced but we aim to eliminate it entirely. Therefore, further measures have been agreed with immediate effect to strengthen this BCP. The Pinnacle team at the National Service Centre are supporting by providing information across to the VIVO such that checks can be made to prevent further missed appointments.


Families who have had missed appointments will start to be contacted by VIVO this weekend to apologise and agree a new appointment. The first families should also start to receive compensation early next week. 


We are truly sorry that many families’ first impression of the new contracts will be negative, and we know how incredibly frustrating it is to wait in for nobody to arrive, in some cases multiple times.  This is not how the new contract will work going forward, and it is disappointing that these technical issues have occurred despite all our efforts and planning.  VIVO and the systems team are working to ensure that the lessons are learned, and this issue cannot be repeated.

UPDATE – Complaints and compensation

UPDATE (June 22) –

Message from DIO:


Pinnacle is working hard to close the gap between complaints and compensation requests being raised and closed. They are recruiting additional staff to address the higher volume of complaints and compensation requests.

In addition, VIVO and Amey are increasing Regional Service Centre (RSC) resource to support an increased level of complaint resolution requests from Pinnacle allowing Pinnacle to speed up to the closure rate and communication to families.

Pinnacle will prioritise the raising of emailed complaints from families to effectively action them and ensure a complaint reference is applied. This will ensure families are aware that Pinnacle have acknowledged the complaint. All emails will be responded to within 5 working days.

The process for raising complaints for missed appointments in the South East and South West is described above where the dedicated new call option will capture these specific complaints.  If families wish to raise a complaint about any other issue, or request compensation this should be raised via Pinnacle’s online form. We would also advise families to call the NSC to raise a new appointment in this instance. 

In April 2017 the Defence Infrastructure Organisation (DIO) launched a compensation scheme in the UK to cover missed appointments and significant issues at move-in for Service Family Accommodation (SFA) and Substitute Service Family Accommodation (SSFA).


Please note that claims must be made within 14 days of the issue occurring. Once an application is received, the DIO Compensation Claim Team will then consider the claim and the claimant will be informed whether this has been accepted or rejected. If accepted, this will be in the form of High Street Vouchers – please be aware that no alternatives will be offered; if rejected, then the reasons for this will be explained. There will be no appeals process.


For full information/to apply for this scheme, please click here.


Posted on: 3rd May, 2018
Updated on: 3rd May 2022

The NFF is delighted that Defence Secretary Gavin Williamson has announced his intention to counter the Scottish Government’s income tax rise that affects thousands of Naval Service personnel in Scotland.


This issue was raised with us by many Naval Service families located in Scotland and we advocated on their behalf to the MOD and Government. We are pleased that they have listened.


On 21 February 2018, the Scottish Parliament ratified their income tax rates and thresholds applying to Scottish taxpayers. As a result those Service personnel earning more than £26,000 would pay more tax in comparison to their counterparts in the rest of the UK. Scotland plays a key role in the defence of the UK and its contribution is set to increase. Some 1,400 submariners will move to HM Naval Base Clyde by 2020, creating the new single home of the entire UK Submarine Service.



Since this article was published in March 2018, a new compensation scheme has been announced in Mid-July 2018 for those who are affected by the increase in Scottish tax rates. For further information on the scheme and our comment, visit here.


Posted on: 13th March, 2018
Updated on: 9th August, 2018