The scheme, which is expected to cost about £1.5 million a year, will also apply to children of the 588 military personnel killed since 1990.
The £8,210 university grants would pay living costs of £5,000 and tuition fees. Further education scholarships would also fund college fees and costs when not covered by other entitlements.
Shadow chancellor George Osborne said the scholarships will be funded from the existing £455m annual Widening Participation budget. "These university and college scholarships will provide financial help for the families of fallen servicemen and women - and will be a lasting tribute to their bravery and sacrifice," he said.
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