MoD to review school fee rules to combat fraud

THE Ministry of Defence has launched a review of a scheme that allows military personnel to claim boarding school fee allowances for their children following the conviction of several senior officers for fraudulent claims.

So far this year two highranking officers have been sent to prison and a third sacked from the armed forces after being found guilty of fraudulently claiming Continuity of Education Allowance. A fourth senior officer is currently under investigation over allegations that he too falsely claimed the allowance, which is offered to personnel in all three services to help fund 90 per cent of their child’s education when they relocate on assignment.

However, the rules stipulate that their family must live with them, a practice known as “serving accompanied”. Officers can apply for the allowance if their new location is 50 miles away from their family home.

Speaking to The Sunday Telegraph from Washington DC as he visited his opposite number in the Pentagon, the Defence Secretary Ben Wallace said: “Some of the senior elements in our armed forces have been caught wanting – rules don’t stop applying when you become a general.”

The Telegraph understands the MoD has launched a review of the scheme, which is likely to examine how it is being accessed. There is concern the allowance is either being misused, or is so complicated that personnel too easily find themselves claiming money after they have become ineligible.

The most high-profile case this year was that of Major General Nick Welch OBE, 57 at the time of his conviction in March, who became the most senior army officer in 200 years to be court-martialled after he lied to military authorities about his wife living with him 120 miles from their children’s school in order to fraudulently claim just over £48,000 in CEA over a period of 15 months. He was jailed for 21 months.

Major Lloyd Hamilton MBE, 47, was sacked from the forces in March after defrauding the Army out of £13,000 in CEA. He was handed a three-month jail sentence, suspended for 18 months. And last month Lieutenant Colonel Adam Roberts, 57, was jailed for 20 months after falsely claiming £44,000 in school fees.