Think it would be a cracking idea - one of the few truly worthy things to come out of Parliament if it does go through.
Have you thought about having a look at what they do in the States for military orphans? I would have thought that this sort of thing would be typical of the US military and the way they look after their ex-serving & families. If nothing else, it may give you a steer or a few thoughts.
Is there a time limit on this?