SRCA Section 22 of the SRCA and section 127 of the MRCA provides that where:
A person is receiving incapacity payments; and
As a result of their service injury or disease is being maintained in a hospital, nursing home or similar place/institution; and
Has been a patient of that institution for a continuous period of at least one year; and
Has no dependants;
their incapacity payments may be reduced. The amount of payment must remain at least at one-half of what the person is otherwise entitled to receive. The person's future needs and expenses and the length of time they are likely to be maintained in a hospital or similar must be considered before reducing payments.
The amount of compensation will not be reduced where the person has any dependants, dependent young persons or has a dependent young person in the care of another person.