Ministry of Defence settles £12 million claim over discriminatory armed forces housing policy

Under the MOD’s previous housing policy, many younger and unmarried personnel were denied assistance with the rental costs of what is known as Single Living Accommodation. 

In the Army, only personnel who were both married and over the age of 37 qualified for an accommodation allowance to reduce their rent. The RAF and Royal Navy did not take age into account but only allowed those who were married or in a civil partnership to receive the allowance.

In 2021, a National Audit Office report concluded that the policy could be considered discriminatory due to younger and unmarried personnel having to pay more for their accommodation. 

The MOD has now reviewed and amended the policy subsequent to the claims being brought. As a result of the policy amendment and proposed settlement it is believed that this historic issue is now resolved.

The amount of compensation paid to serving and former members of the military who joined the legal claim, led by law firm Leigh Day, will depend on how long they spent in Single Living Accommodation and how much they paid for it. Most claimants are expected to be offered compensation of around £1,000, with some receiving more depending on their personal circumstances.

Leigh Day partner Ryan Bradshaw, who led the legal claim, said:

“We are delighted to have obtained this settlement offer from MOD for our clients. Alongside the changes which have now been made to its housing allowances policy, we are satisfied that the MOD have taken the steps needed to resolve this dispute in a sensible manner. We look forward to delivering the compensation to our clients and encourage them to keep an eye on their emails in the coming days.”