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.
Full budget coverage can be seen here.
More top news
Remaining dry with warm sunny spells on Monday.
Douglas Carswell told ITV's Peston On Sunday he wanted to "support" the government as a "critical friend" but refused to rule out a return.
The Ukip leader confirmed he had "no prior warning" of Douglas Carswell's resignation from the party as he hit out at the "staunch Tory".