The Chairman of the Royal British Legion for Birmingham County has called for the Ministry of Defence to stop battling against troops to claw back cash from compensation claims.

Jim McDonald, who was severely injured in a bomb blast in Northern Ireland in 1974 after 17 years of service in the armed forces, said it was time for the Government to make payouts automatic and take servicemen on their word.

His comments came as the Ministry of Defence went to the Court of Appeal to try to significantly reduce the compensation awarded to two injured soldiers.

Corporal Anthony Duncan was initially awarded £9,250 after being shot, while Marine Matthew McWilliams received £8,250 for fracturing his thigh on a training exercise.

But a tribunal adjusted the payouts to £46,000 and £28,750 respectively as the pair argued they had suffered a number of subsequent health problems during their treatment.

Now the Government wants to reduce the lump sum payout in the landmark hearing that could affect hundreds of future compensation claims.

Mr McDonald, whose son is in the Royal Signals, said: “Compensation for our troops should be automatic.

“It has been the case for years that troops have had to fight for every penny of their compensation award.

“British soldiers are putting their lives on the line with the knowledge that there is a good chance they won’t get the backing and financial support they deserve if and when they get hurt.

“If the court sides with the Ministry of Defence it means that soldiers who suffer complications with war injuries further down the line will not get the help they need.”

The court appeal comes after two more soldiers were killed in Helmand province, bringing the total number of UK fatalities since operations began in Afghanistan in 2001 to 191.

The military wing of Selly Oak Hospital has seen a doubling of its seriously wounded casualties this month, with 25 last week, 28 the previous week and 22 a week before that.