Situated in Aylesford, Kent, the project will help veterans from across the UK to live independently by providing fully-adapted long-term homes for wounded or injured veterans.
As part of £40 million HM Treasury funding, the project is to receive a £1.95 million boost to help provide 24 affordable homes for veterans at risk of homelessness.
This will be funded by LIBOR fines, levied on banks after serious market abuse.
Charity partner the Royal British Legion Industries will provide the land for the site, and additional funding of £1.45 million to support the scheme.
Defence Secretary Michael Fallon said:
On Armistice Day we remember the sacrifices of all those who lost their lives fighting for their country.
However, we should also remember the sacrifices that our veterans made during their service and the importance of continuing to support those who need it.
It was my privilege to be here today to see some of the fantastic examples of how Royal British Legion Industries are helping our veterans and to share their service of Remembrance.
I’m delighted that they will benefit from LIBOR funding, which will allow them to do even more to assist veterans and their families to find accommodation and to adapt it to their needs.
Building work will commence in mid 2015, with the aim of having the first homes available for veterans in 2016.
The government has so far pledged more than £100 million of LIBOR funds to support the nation’s Armed Forces, including £20 million to improve accommodation.
Chancellor George Osborne said:
On Remembrance Day, we commemorate those who have protected our nation’s freedom and served their country.
The Armed Forces give up so much for Britain, so it’s only right that we ensure they are well-cared for when they retire from service.
LIBOR funds have supported a range of veterans’ needs, from backing the Invictus Games to supporting the poppies at the Tower of London.
It’s only right that funds from those who demonstrated the very worse of values are now going to those who embody the best of British values.