Chancellor George Osborne paid tribute to the heroism and courage of Lance Corporal James Ashworth.
The Corby soldier was awarded a posthumous VC for his courage after he was killed on patrol with the 1st Battalion The Grenadier Guards in Helmand Province last June.
He was protecting his comrades when he died.
The Chancellor mentioned the 23-year-old when announcing that the Military would receive the full recommended increase in "X-Factor" payment in May and to be exempted from changes to progression pay.
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