Exclusive: MOD settles multimillion-pound discriminatory accommodation charges case
The Ministry of Defence has settled a legal case brought by more than 4,500 claimants – up to 90% of whom are thought to be currently serving – over the way it "discriminately" charged rent for Single Living Accommodation (SLA).
Lawyers working for Leigh Day Solicitors have secured a £12m compensation agreement which will see approximately 3,800 claimants receive four-figure payouts, sources said.
But some service personnel told BFBS Forces News they felt unable to join the class-action legal challenge because they feared repercussions — a situation Veterans and People Minister Louise Sandher-Jones said she was “really worried” to hear about.
Those who submitted a claim will receive an email within days urging them to accept the settlement outlined in the correspondence. The source said most of those eligible would receive a payout of around £1,000, with some receiving more – based on their circumstances.
It is understood that the settlement will bring the dispute to an end, and no further claims will be considered once the agreement is signed off by ministers.
Lawyers argued that the MOD broke the law in how it charged some personnel for SLA – the cost of living on base – while others were permitted to stay rent-free.
Rules, which have since been changed, meant that soldiers aged over 37 and who were married were not required to pay SLA fees. Similar guidelines were in place in the Royal Navy and RAF.
Ryan Bradshaw, a partner at Leigh Day, previously said the rules appeared to be a clear case of discrimination.
Now, Mr Bradshaw said his firm was "delighted to have obtained this sensible settlement offer from the MOD".
"Taken together with the change to the policy, we are satisfied that the MOD has taken the steps they need to in order to resolve this dispute," he added.
"We look forward to delivering the compensation to our clients and encourage them to keep an eye on their emails in the coming days."
BFBS Forces News previously reported that rules surrounding who paid accommodation charges in the Armed Forces were initially flagged as potentially discriminatory in a 2021 National Audit Office report.
It concluded that the MOD's housing policy could be considered discriminatory, as younger and unmarried personnel had to pay more for their accommodation. This finding prompted lawyers to explore a potential discrimination case.
An important issue
Mrs Sandher-Jones, who was an officer in the Intelligence Corps, told BFBS Forces News: "I think this is a really important issue that we've looked at – and I remember when I was serving seeing that issue as well.
"So this is something that I completely get what people were saying about. Obviously, we've got that dual waiver in now, and I think it's really, really important.
"Part of the reason I got involved with politics was to try and make things better and try and change things – military accommodation is a classic case of that.
"We've got a huge commitment, half a billion pounds extra to go into defence housing, and we've done the SFA [Service Family Accommodation] review. I'm hoping that we can get sorted on the SLA [Single Living Accommodation] review soon as well, to make sure that when we go forwards we're giving an accommodation offer that's appropriate, that's modern and that works with how people live today."
In relation to service personnel fearing consequences for joining the legal claim against their employer, the minister said: "I want to make myself as accessible as possible to anybody who’s scared, for any reason, about repercussions on themselves. We’re taking that issue very seriously.
"We’ve got the Armed Forces Commissioner, which is now in law. We're cracking on with getting somebody recruited [for that role], which will help broaden the options for people if they want to be able to raise any kind of issue, to make sure they can do so knowing they can trust the system to look after them."
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