It is estimated that the compensation scheme for hearing disability, proposed by Defence Minister Michael Smith, could save the Exchequer up to £400 million. The scheme has been welcomed by the organisation representing officers, but rejected by PDFORRA, the association representing rank and file soldiers.
Almost 14,000 serving and former soldiers have lodged claims for compensation for hearing disability and so far 2,500 of them have been dealt with at a cost of £65 million. The Minister for Defence, Michael Smith, says his proposed compensation scheme would provide those with a genuine hearing disability an alternative to the courts. Furthermore, outstanding claims could be settled within three years as against 17 years in the courts. Under the Minister's proposal, hearing disability would be measured in accordance with the so-called Green Book, an international hearing disability analysis standard, drawn up by a panel of experts.
The scale of compensation would reflect the levels indicated in a High Court test case last year, when an award of £3,000 was made for a minor disability, rather than those indicated in a later judgement, when the possible effects of future age-related hearing loss were taken into account and an award of over £50,000 made. The award involving future age-related hearing loss is being appealed to the Supreme Court. Defence sources say that if awards were to be based on that case, they could cost the Department of Defence over £650 million. A scheme based on the earlier, lower award could mean a saving of between £300 and £400 million pounds.
The Minister's proposal has drawn strong criticism from the soldiers' association, PDFORRA. General Secretary John Lucey says it would exclude thousands of litigants. However, its been welcomed by the officers association, RACO. The Minister is to put the proposals to the Government soon.
