VA’s disability compensation rates for 2013 include a 1.7 cost of living increase. You can see the 2013 table here – https://benefits.va.gov/COMPENSATION/resources_comp01.asp
One of the issues that is currently being discussed in the Senate Veterans’ Affairs Committee is the impact of the proposal for a “chained CPI” index to be used in calculating benefits. This is likely to result in a cut in benefits for those receiving VA disability, as well as for Social Security recipients. Veterans’ organizations have testified recently before joint sessions on the Senate and the House Veterans’s Affairs committees on the impact of this proposal, and Senate Committee Chairman Bernie Saunders has indicated concern about this proposal.
Press releases about the testimony of veterans’ organizations can be found here: