LGA criticises lack of impact assessment for extension of Armed Forces Covenant duty

In evidence to a parliamentary committee in March, but published last week, the LGA said it supported the aims of the covenant and hosts the Armed Forces Covenant Network of council officers.  

It said: “It is important that any changes in scope that may have a financial impact on councils are assessed.

“The LGA is requesting that a full impact assessment is undertaken to identify any new burdens, however the Ministry of Defence (MOD) has said that they do not need to undertake an impact assessment as costs will be minimal.”

But it noted that in June 2025 the Government acknowledged the expansion of the legal duty to support service people under the covenant “will place an additional strain on Government departments and local authorities” and promised “extensive engagement to ensure resourcing constraints are considered”.

At that point the Government said the MOD was developing a new burdens assessment, alongside the Ministry of Housing, Communities and Local Government but the LGA said this had not been undertaken and it had “not been asked to assist in developing an impact assessment”. The MOD has been contacted for comment.

Covenant duties would reach into social care, where there was an expected £8bn funding gap by 2028-29  and almost 60% of councils expected it to be fairly or very difficult to set a balanced budget in 2026-27.

“Expanding statutory duties under the Armed Forces Covenant in this financial context, without a comprehensive impact assessment and any identified new burdens funding, risks compounding instability across local government,” the LGA said.

“It is essential that any extension of the covenant legal duty is accompanied by properly assessed and fully funded new burdens support.”

Armed forces minister Louise Sandher-Jones said earlier this year that the Bill would “deliver on the government’s manifesto promise to extend the Armed Forces Covenant legal duty to every area of government and devolved governments, placing the armed forces community at the heart of policy and decision making”.

Government bodies would have to consider the needs of the armed forces community when shaping policy.

Clear guidance from government would be essential to delivering the covenant and councils had reported that this worked best when integrated into local networks and supported by strategic partnerships.

“However, councils consistently face challenges with inconsistent statutory guidance and little to no top-down leadership and support from central government departments affected by the covenant such as MHCLG, DfE etc”, the LGA said.

“This leads to varied interpretations and inconsistent applications, creating geographical disparities. Councils request clearer national guidelines to standardise covenant duties and reduce ambiguity.”

The LGA said councils “frequently report challenges with conflicting statutory regulations in housing and education, which complicate the application of covenant duties".

These made it difficult to prioritise veterans’ needs without conflicting with other legal obligations.

Mark Smulian