MoD seeks out-of-court deal in compensation fight with gay veterans
Defence secretary Wes Streeting says talks are under way as a high court judge prepares to decide whether two former personnel can challenge the UK's LGBT financial recognition scheme.
At a glance
- The MoD is holding talks this week on settling a legal challenge over compensation for gay veterans forced out of the armed forces.
- Steven Stewart and Mark Shephard were denied the scheme's £50,000 payment because their departures were recorded as resignations.
- A high court judge will decide next week whether their judicial review of the LGBT financial recognition scheme can proceed.
The UK Ministry of Defence is seeking an out-of-court resolution to a legal battle over compensation for gay veterans who were forced to resign from the armed forces because of their sexuality, defence secretary Wes Streeting has told the Guardian.
Streeting said the department was holding talks this week, as a high court challenge continues over rules that blocked some veterans from receiving £50,000 payments despite being forced out of military service.
Next week a high court judge will decide whether two former personnel, Steven Stewart, 55, a former Royal Military Police corporal, and Mark Shephard, 49, who served in the Royal Air Force, can proceed with a judicial review of the government's LGBT financial recognition scheme. The scheme was established in 2024 under Keir Starmer's premiership.
Payments withheld
Neither man qualified for the scheme's £50,000 dismissed or discharged payment because their departures were recorded as resignations rather than formal dismissals. Stewart received £7,000 and Shephard £5,000 under a separate payment recognising the impact of the ban on LGBT personnel.
Streeting said he would be "careful" what he said because the case "might be subject to judicial review". Asked whether he would review the rules so that those not formally discharged could also be eligible for the dismissal payment, he said: "We do want to get this right so we'll keep the conversation going and see if there's a way forward that doesn't require legal action."
He stopped short of promising to change the rules or confirming that any settlement was being considered. He said the review had tried to balance cases where formal dismissal records existed with the experiences of veterans who left without records, describing the issue as "tricky".
Streeting urged veterans who have not yet applied to do so, saying £75m has been allocated to the scheme and more than £60m has already been paid out.
Gay men and lesbian women were banned from serving in the British military until 2000. Proper records have not been held, but about 200-250 personnel were thrown out each year because of their sexuality.
Streeting, Britain's first out gay defence secretary, said some veterans had already died without receiving justice, adding that compensation could not erase "the pain and the indignity" of being asked to leave a service they loved.
He also said he had a responsibility to ensure trans service personnel do not face similar treatment, adding: "Talent is everywhere. Opportunity isn't." He said he wanted every trans person serving to know he is proud of them, and acknowledged that some trans people had questioned whether the Labour government respected them because of decisions he took as health secretary.
Source: The Guardian World.
Questions and answers
- What is the LGBT financial recognition scheme?
- It is a UK government compensation scheme set up in 2024 under Keir Starmer to recognise the impact of the ban on gay and lesbian personnel. £75m has been allocated and more than £60m has already been paid out.
- Why were Steven Stewart and Mark Shephard denied the £50,000 payment?
- Their departures were recorded as resignations rather than formal dismissals, so they did not qualify for the dismissed or discharged payment. Stewart received £7,000 and Shephard £5,000 under a separate payment.
- When were gay people banned from serving in the British military?
- Gay men and lesbian women were banned from serving until 2000. About 200-250 personnel were thrown out each year because of their sexuality, though proper records were not kept.
