MoD LGBT Compensation Scheme Challenged

By: Paul Goldberg, Senior Political Correspondent | JRL CHARTS

LONDON — (February 19, 2026) — A group of UK veterans who say they were forced out of the armed forces under the former ban on LGBT service members are threatening legal action against the Ministry of Defence (MoD), arguing that the government’s financial recognition scheme unfairly excludes certain former personnel based on rank.

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The challenge centers on the LGBT+ Veterans Financial Recognition Scheme, which offers payments of up to £70,000 to individuals dismissed or discharged under policies in place between 1967 and 2000 that prohibited gay and lesbian personnel from serving openly.

Under the current structure, veterans who were formally dismissed may apply for a £50,000 payment, with an additional £20,000 available in cases involving criminal records or documented mistreatment. However, critics argue the eligibility criteria distinguish between commissioned officers and non-commissioned personnel in ways that leave many former enlisted service members excluded.

Rank-Based Criteria Under Scrutiny

Mark Shephard, a former Royal Air Force aircraft fitter, and Steven Stewart, a former corporal in the Royal Military Police, have issued a pre-action legal letter challenging the lawfulness of the scheme. Their legal team contends that the framework does not treat veterans equally, particularly those who say they resigned under threat of disciplinary action rather than being formally dismissed.

According to their representatives, the scheme provides compensation pathways for commissioned officers who felt pressured to leave but does not extend equivalent eligibility to non-commissioned personnel who claim similar circumstances.

The legal team has indicated it is prepared to pursue judicial review proceedings if the criteria are not reconsidered.

Historical Context

The ban on LGBT service members, which remained in place until 2000, subjected personnel to investigations, discharge proceedings, and, in some cases, criminal consequences. The UK government formally acknowledged the harm caused by the policy following an independent review, leading to the creation of the financial recognition scheme.

In recent months, King Charles III dedicated the UK’s first memorial honoring service members affected by the policy, underscoring official recognition of the historical injustice.

However, critics of the compensation structure argue that implementation gaps remain.

Veterans Speak Out

Shephard, who served from 1995 to 2001, said he was questioned about his sexuality while stationed at RAF Benson and given the option to resign or face dismissal. He maintains that the policy effectively ended a military career he had worked to build.

Stewart, who served seven years including deployments during the Gulf War and in Northern Ireland, said he experienced intrusive questioning prior to leaving service in 1995. He believes the current framework does not fully reflect the experiences of many enlisted personnel.

Their legal representatives argue that thousands of former service members may fall outside the current eligibility thresholds.

Government Response

The Ministry of Defence has previously stated that it “deeply regrets” the treatment of LGBT personnel during the period of the ban and has emphasized its commitment to processing compensation applications efficiently.

The MoD has also acknowledged criticism over the speed of awards, particularly for elderly veterans awaiting decisions.

As of publication, the department has not issued a formal response to the threatened legal action.

For continued coverage of UK defence policy, veterans’ affairs, and military legal developments impacting the LGBTQ community, follow Breaking Military News UK exclusively on JRL CHARTS.

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