Before you commit to an overseas posting it is important to carefully assess the potential financial implications of your move. Whilst there is a ‘package’ of overseas allowances it is important to note they are a contribution towards costs, and therefore may not cover all expenses incurred.

We recommend you consider your current financial position and whether you can withstand the costs you may incur as part of the move, before committing to go overseas.

Overseas deployment financial considerations

Moving costs

Before accepting an overseas assignment it’s advisable to research the financial aspects of moving overseas, and the specifics for the assignment location. While some costs may be reduced others could increase.

We recommend you consider these factors:

  • Local cost of living – including utilities, groceries, transport, etc.

  • Expected costs – such as vehicle purchase, rental deposit, insurances (e.g. contents, travel, cars, pets) etc.

  • Potential unexpected costs – for example, pet transportation or travel costs for adult dependent children.

  • Local employment and remote working opportunities (if accompanied).

  • Access to banking and credit – the availability of banking services and credit facilities abroad.

  • Available allowances – ensuring you understand which allowances you are eligible for.

  • Location specific financial support – such as VAT-free status and fuel concessions (some EU locations).

For comprehensive guidance on preparing for and overseas refer to Overseas Checklist>

Overseas Allowances

When posted overseas there are a number of allowances and expenses available to help with relocation costs. It is important to understand what allowances are available to you and their financial value.

Overseas Allowance Recokner

Planning an overseas posting? The Overseas Allowances Reckoner is here to make things easier. This interactive Power BI tool gives you a clear, up-to-date picture of the financial support you can expect when serving abroad.

It uses the latest rates from JSP 752 and provides a personalised estimate based on your circumstances, helping you plan ahead, reduce uncertainty, and understand your entitlements without the usual complexity.

Overseas Allowance Reckoner tool > 

  • Advance pay

    To help with the affordability and upfront costs associated with an overseas move, you (the Service person) can request an Advance of Pay – which works like a short-term loan.

    An advance of up to four months of the Service person’s net salary can be requested and the Service person can pay it back out of their salary over a 24-month period, or sooner.

  • Disturbance Expense

    The Disturbance Expenses is designed to contributes towards the extra costs you may incur when moving. It is paid as a fixed sum in advance of your move via your pay. The amount paid reflects the type of accommodation you’re moving to and its location – it is worth noting that when moving to an overseas location DE is of greater value when moving overseas, than a move back to UK.

    Find out more on the Discover My Benefits pages (gov.uk)>

  • LOA

    Local Overseas Allowance (LOA) is designed to help support any extra costings in your your day-to-day expenses in certain overseas locations where the cost of living is higher than in the UK.

    It is calculated as a daily rate which varies by location and Personal Status Category. Find out how LOA is calculated here >

    Find out more about LOA at Discover my Benefits (gov.uk) >

  • MOD ex-gratia payment in lieu of maternity

    Ex-gratia payments are made by the MOD in lieu of DWP UK Maternity Allowance when a Service person relocates overseas with their spouse/civil partner but maternity allowance cannot be paid to them in that country. For eligibility and how to apply, go to MOD ex-gratia payments in lieu of Maternity Allowance (gov.uk)

  • Overseas Private Vehicle Provision (OPVP)

    OPVP is available to families receiving LOA and helps with the cost of accessing a private vehicle in an overseas location.

    Find out how OPVP can be used and claimed (gov.uk) >

  • Claiming Universal Credit overseas

     Serving personnel and families are entitled to claim Universal Credit, wherever they are located. Families assigned overseas can submit claims in the same way as those in the UK, however you need to follow the guidance in this link to ensure your claim goes to the correct team Universal Credit for armed forces personnel posted overseas (gov.uk)

    If you are currently serving overseas and are already claiming Universal Credit, you need to sign into your account to report your ‘change of circumstances’ and update your address. This ensures your claim will be managed by DWP Armed Forces Champions. More information is available in the above link.

  • Claiming Child Benefit overseas

    UK Service personnel posted overseas may still be eligible for Child Benefit, even if your child doesn’t live with you. Tell the Child Benefit Office as soon as you know you will be leaving the UK for a posting abroad:

    Online>
    By phone or post>

How we can help

If you are overseas and need guidance on finances, let us know.