Based on this statement from Phil Woolas last April:
I sent a Freedom of Information request to see what the impact of Gurkha Settlement Rights had been on the Defence budget after just over a year.
I got the response today:
The figure of £1.4 billion was the result of cross Government consultation on the potential financial cost to the UK of allowing all former Gurkhas to settle here. It covered pension benefits, tax credits, child benefit costs, NHS costs and education costs. None of these costs are covered by the defence budget.
The only impact on the Defence budget has been £20,000 per year to set up and run the Settlement Office in Kathmandu
One area of expenditure that does fall to the defence budget is the cost of setting up and running an office in Kathmandu in order to provide free help and advice with completing the visa application form, obtaining the necessary supporting documents and generally helping ex-Gurkhas to make an informed choice about whether life in the UK is for them. The cost of setting up and staffing the Settlement Office amounted to £20,000 in financial year 2009/2010 and a similar budget has been earmarked for the current year. The office has dealt with almost 10,000 visits since opening in October 2009.
Not quite £1.4 billion out of Defence then Mr Woolas...