Covenant support for the Armed Forces community: Financial services
In financial services, Covenant support for the Armed Forces community includes the following:
“I don’t know about the civilian financial services available to me, as the Armed Forces have always provided me with what I need”
MOD has published financial top tips for service personnel and guidance on financial support for reservists.
Joining Forces was launched under the Armed Forces Covenant. It is three credit unions working together to provide savings accounts and loans to the Armed Forces and their families. Joining Forces can offer free and impartial financial guidance to service personnel across Defence, covering all aspects of financial services.
“I have a limited credit history, as being in the Armed Forces means I deal less often with financial services companies”
The three credit unions in Joining Forces understand that service in the Armed Forces and deployment abroad can negatively affect credit history. They can look at wider circumstances than many high street lenders.
“I incur costs from having to gain Consent to Let from my mortgage provider, or change my mortgage to buy-to-let, when the Armed Forces re-locate me”
The Housing Covenant support page addresses this issue.
“I incur motor insurance cancellation fees and lose my No Claims Discount when the Armed Forces post me overseas”
Service personnel posted overseas can avoid paying motor insurance cancellation fees. They can also protect their no claims discount for up to 3 years. Several insurance providers extend this offer to Service families too. However, it is important to check any exclusions with insurance providers. The Association of British Insurers has provided a full list of participating insurers, and what specific support each one offers.
“I can’t use my car when the Armed Forces post me overseas, but have to continue paying for it, as it’s on finance”
The Financial Leasing Authority and the National Franchised Dealers Association have published the Motor finance solution for deployed service personnel. This was developed in conjunction with the MOD Covenant team. The protocol offers tailored support to Armed Forces personnel deploying overseas, and their families. This is in an effort to remove disadvantages frequently experienced by personnel with a motor finance policy.
“I incur broadband cancellation fees when the Armed Forces re-locate me”
The vast majority of the UK’s largest broadband and media providers have committed to waiving cancellation fees for Armed Forces personnel posted aboard or to another part of the UK. By committing to this waiver as part of their Covenant pledge, it should also apply to families of serving personnel.
News story: Broadband providers drop cancellation fees for Armed Forces personnel
“I can’t use my mobile phone when the Armed Forces post me overseas, but have to continue paying for it, as it’s on contract”
Since 2015, most large mobile phone contract providers have committed to removing disadvantage to the Armed Forces community by allowing suspension of UK mobile phone contracts until they return to the UK. Companies who have signed up to this pledge include:
- Vodafone: committed to enabling Armed Forces and their families to suspend mobile contracts for up to three years
- Three: committed to suspending contracts of spouses joining their partners abroad for 12 months, and if deployed for more than 12 months a discount will be applied to any termination charges
- EE: committed to enabling Armed Forces and their families to suspend contracts for up to 12 months
- O2: committed to suspending contracts of MOD personnel and families
News story: Tackling Commercial Disadvantage for Service Families Overseas
“While posted abroad, I can’t access the products and services I need from UK companies, as their systems can’t post to BFPO addresses”
The MOD, British Forces Post Office (BFPO) and Royal Mail have worked together to introduce UK-style postcodes for personnel based overseas. The new online postcodes will help everyone serving overseas, including those aboard His Majesty’s ships and submarines, and their families, by improving access to products and services on the internet, as proposed in the Armed Forces Covenant. It will also help personnel maintain a UK credit history recognised by financial service providers. Find a BFPO number and postcode.
News story: BFPO postcode solution improves access to online services for those based overseas
Wider sources of information
- A list of British Insurers Brokers’ Association members that can provide tailored support to the Armed Forces community.
- An Overseas Investment and Scam-avoidance advice note for those personnel and their families serving, or due to be assigned, overseas. To produce this, the MOD Covenant team worked in collaboration with UK Finance, the collective voice of the banking and finance industry, and the Service Families Federations.
- The Defence Discount Service offers online and high street discounts to members of the defence community. Businesses and local authorities can sign up for free and offer a discount for the Armed Forces community. The Armed Forces Railcard also offers up to 1/3 off rail fares. Veterans can now apply for a Veterans railcard, which gives the holder discounted rail travel throughout the country.
