Labour's Shadow Armed Forces Minister Kevan Jones MP said:
"This seems an unplanned afterthought that will raise uncertainty for service personnel and their families.
"Ministers must tell us how this compensation scheme will work and when our forces will receive reimbursements.
"No member of the UK military should be out of pocket due to their patriotic service and yet they seem to have been overlooked by Ministers.
"Rather than rushed announcements we need clear answers and details on how those in Cyprus will be protected."