MPs are calling for a full investigation into the veterans' benefits system , saying it is a "national scandal that should have us all hanging our heads in shame".
Speaking in the House of Commons last night, MPs heard that the current system treats veterans like they are trying to "swindle the system".
Veterans get benefits for being physically or mentally harmed in service - at least, on paper.
Those claiming for events before April 6 2005 can apply for war pension payments. After that point they must go to the Armed Forces Compensation Scheme (AFCS).
The system is meant to help veterans, but actually pushes many into poverty, ill health and sadly even suicide, MPs said - and as The Mirror has reported .
The latest damning critiques of the war pension scheme and AFCS came after MP Owen Thompson secured a Commons debate on how these are run.
MPs voted to pass the motion, meaning government is expected to launch an inquiry into Veterans UK, the part of the MOD that handles benefits.
However, Westminster insiders said the government may just choose to ignore the issue.
In a fiery speech to open the debate, Thompson said: "Yes, war pensions and the compensation scheme exist, but the way in which they are being administered is a national scandal that should have us all hanging our heads in shame.
"The process, as it stands, operates in a way that discourages veterans from pursuing their claims.
"It is a process that is inherently distrustful, presuming that veterans are trying to swindle the system. It is mired with complicated terminology and legalese, with little signposting for those who need it most."
Thompson has been campaigning on the issue since his constituent Garry McDermott made him aware of how widespread the problem is.
McDermott is a veteran of the Royal Scots and has been struggling to get the right compensation out of the MOD for more than 10 years.
MoD figures show that just half of those who have used the AFCS and a third of those who have used the war pensions scheme ranked each just one out of 10, or 'very dissatisfied'.
MPs also heard that the MOD does not keep data on veterans who give up on their claims, and that evidence from army medical records is "regularly ignored".
Scottish National Party MP Carol Monaghan said: "Most of us speaking this evening recognise that the system needs some reformation."
This should be designed with veterans' trauma in mind, she went on, and added that the government is currently "putting cost-cutting ahead of compensation".
Monaghan also noted that veterans report vital medical evidence going missing from their bundles when they appeal their claims at tribunals.
Some veterans have sadly died by suicide in the time taken to get their claims heard by the MOD, she went on.
Labour MP and shadow veterans minister Stephanie Peacock said that "far too many veterans are being denied the payments they are entitled to".
In response, defence minister Leo Doherty, a Scot Guard veteran who has served in Afghanistan and Iraq, said he did not agree with Thompson's "overwhelmingly damning indictment of the system".
He added: "We are seeking improvement first in the speed of a claim, but also in customer service. However, I reiterate that this is not about saving money."
He said the veterans benefits system "recognises the scale of the service of our magnificent veterans’ community, which comprises more than 2million people, but in an organisation of that size there will of course be some cases that do not get the appropriate level of service".
Doherty added that of 106,000 veteran payouts, 154 complaints were received - a 0.1% failure rate.
That figure was hotly disputed by veterans after the debate, with three former soldiers interviewed by The Mirror accounting for 40 complaints between them.
The veteran organisation Justice4Troops, which is not currently active, has heard of 2,500 problems alone.
