The UK government has announced a significant expansion in funding for veteran services, with committed spending for the Office for Veterans’ Affairs (OVA) set to treble.
Rising from £11.6 million in the 2023/24 financial year to nearly £37 million for 2025/26, this budgetary uplift is part of a broader legislative push to fully enshrine the Armed Forces Covenant into law. For the UK defence industry, particularly firms involved in social value initiatives and specialized service delivery, these figures represent a sustained government commitment to the post-service welfare of the approximately 1.8 million veterans currently residing in the UK.
A primary driver of this investment is the rollout of the new VALOUR system, a project allocated £50 million over a three-year period. This initiative focuses on the establishment of a nationwide network of veteran support centres, with 65 area bids already submitted from across the UK. These centres are intended to serve as hubs for health, housing, and employment services, creating potential requirements for infrastructure management, digital integration, and logistical support from private sector partners. Additionally, a further £12 million has been allocated to address veteran homelessness through Op FORTITUDE, specifically targeting support for individuals with complex needs and rough sleeping prevention.
From a recruitment and personnel perspective, the government is expanding Op ASCEND, a free careers advice service designed to facilitate the transition from military service to civilian employment. Currently, 420 employers and 4,600 veterans or family members have registered with the platform. This presents a direct opportunity for defence contractors—both prime and sub-contractors—to access a highly skilled talent pool while fulfilling the social value criteria increasingly required in Ministry of Defence (MOD) procurement processes.
In the healthcare sector, the Department for Health and Social Care has committed a record £38 million for the 2025/26 period to fund veteran-specific services in England. This include Op COURAGE for mental health and Op RESTORE for physical health needs, which includes the provision of prosthetics and specialized medical treatments. Suppliers in the medical technology and rehabilitative equipment sectors will find these ringfenced budgets particularly relevant as the government seeks to enhance long-term care for former personnel.
The government’s strategy also encompasses digital modernization. The digital Veteran Card program provides a streamlined method for ex-forces personnel to access services and concessions, with plans to expand availability to veterans living overseas. Furthermore, £75 million has been ringfenced to compensate veterans affected by the pre-2000 ban on gay personnel, with £35 million already disbursed. These comprehensive investments signal a shift toward a more structured, legally mandated support framework, providing clear avenues for industry engagement in veteran welfare and employment initiatives across the UK defence supply chain.
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Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
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