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Children of servicemen and women killed in action will be offered access to £8,200 annual scholarships in higher education, the universities minister has confirmed.
David Willetts told the Conservative party conference in Birmingham that the country owed a "special debt" to these families and the scholarships would be a small way of recognising the "ultimate sacrifice they have made".
He said the Tories had promised in Opposition to introduce scholarships for the children of those killed in active duty in the past 20 years.
It is estimated the scheme will cost £800,000 a year, suggesting that less than 100 scholarships will be awarded.
Willetts told conference: "That is one small way of recognising the ultimate sacrifice that they have made. I can confirm today that my Department will set aside funding for new higher education scholarships for the children of deceased servicemen and women.
"And we plan to go further. It is wrong that so many people, on leaving the Armed Forces, should face hard times. Liam Fox and I will honour our debt to them.
"That is why I can also confirm that my Department will continue funding service leavers to get new qualifications."
Willetts said that the government also plans to offer an enhanced scheme that will cover more ex-service personnel.
"Quite simply, it is the right thing to do," he added.
The universities minister also confirmed that Lord Browne's long-awaited review into student funding will be published next week.
He argued that students should make a "substantial contribution" towards their university education.
And he told universities that more must be done to prepare students for work.
"At the moment academics are more likely to be promoted for research work or for administering their department rather than for excellent teaching," he said. "That has to change."
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