Danger Bonus for the British Armed Forces announced, for service in Afghanistan, Iraq & the Balkans !!!

'Danger bonus' for war zone troops
Troops serving in Afghanistan and Iraq will get annual bonuses of up to £2,240.00 because of the dangers they face, Tony Blair said.

The Prime Minister insisted that providing extra money was the "fair thing to do", while admitting that military operations in the Middle East have proved far tougher than expected.

Mr Blair said: "This recent campaign in Afghanistan, which is absolutely vital for our security and the broader security of the region and the world, has brought home to us that our troops today ... are facing dangers and facing a type of conflict that a few years back they were unlikely to face, I think it's important we recognise that."

Around 15,000 troops on operations in hazardous areas - also including the Balkans - are to benefit from the flat-rate, tax-free payments.

The amount will increase depending on how long their tour is, up to £2,240.00 for a full six months - usually the maximum active duty in a year.

Defence Secretary Des Browne said that British forces were already among the best paid in the world, but forces from other countries such as the US did not pay tax while on operations.

"This has led some to demand that we do the same for our people," he said in a statement to the Commons. "I think we can do better."

Offering a tax-free bonus meant half those on operations would be better off than under a tax exemption, especially the lower paid, he said.

The most junior ranks will be over £500.00 better off after a six month tour than if they had been simply exempted from the tax system. Reservists will be eligible for the bonus in the same way. The scheme, funded with an extra £60 million from the Treasury, will also be backdated to April.

Aides to Mr Browne insisted they had been considering the situation for some time, and were not responding to "different" Tory plans for soldiers to be exempted from income tax.