The UK Government has fined one of its own departments and will use the money to send 2,500 veterans to London for World War II commemorations.
All accredited veterans will be reimbursed for their travel costs by up to £200 for the event to mark the 70th anniversary of Victory in Europe (VE) Day in May.
More money will be offered in some circumstances, such as for those living on remote Scottish islands.
The plan is being funded by fines imposed by the Treasury on the Ministry of Defence for breaching payroll rules.
Chief Treasury Secretary Danny Alexander yesterday announced the scheme, which will be organised by the Royal British Legion.
The Highland MP said: “I’m delighted that veterans from across the UK, who have fought so hard to defend our country and our freedoms, will able to join together at the VE Day celebrations in London this May where the entire nation will mark 70 years of freedom and thank them for their service.
“I’ve allocated this funding from fines levied on the Ministry of Defence for breaking strict off-payroll rules imposed by the Treasury.
“It ensures that veterans from the Scilly Isles to the Shetlands will be able to come together to commemorate Britain’s finest hour.”
Bob Gamble, assistant director of engagement for the Royal British Legion, said: “We are pleased to have this support from HM Treasury making it possible for those who contributed to victory in Europe to attend the commemorations in London, regardless of where they live in the UK.
“The Royal British Legion is committed to recognising the entire VE Generation – not just those who served in the Armed Forces, but also those in reserved occupations at home, who gave so much to this country.
“We are encouraging events across the UK to mark the 70th anniversary of VE Day, and we will be working with other veterans’ organisations to make sure that those who wish to come to London will be able to do so.”