UK Gay Veterans Denied £50,000 Compensation: Government Seeks Resolution

Two gay veterans who say they were forced out of the British military received thousands less than others who were formally dismissed. Now, the government is seeking a way to resolve the dispute before a High Court hearing.

The fight over LGBT veterans compensation in the UK has taken a significant turn.

Defence Secretary Wes Streeting has confirmed that the Ministry of Defence is holding talks aimed at resolving a legal dispute involving two former servicemen who say they were forced to leave the military because of their sexuality.

The problem? While some veterans can receive £50,000 for being dismissed under the military’s former ban on LGBTQ+ personnel, others who say they were pressured into resigning have received considerably less.

And yes, the distinction comes down to how their departure was officially recorded.

Two Veterans, Two Very Different Payments

Steven Stewart, 55, a former Royal Military Police corporal, and Mark Shephard, 49, who served in the Royal Air Force, say they were effectively forced out of their military careers because they were gay.

But because their departures were recorded as resignations rather than formal dismissals, neither qualified for the scheme’s £50,000 dismissal payment.

Instead:

• Steven Stewart received £7,000.
• Mark Shephard received £5,000.
• Veterans formally dismissed because of the ban can receive £50,000, potentially alongside a separate impact payment.

The two men argue that the system unfairly treats veterans differently despite the discrimination they experienced.

Their legal representatives, Irwin Mitchell, have confirmed that the High Court will consider their challenge on 28 October.

What Has the Government Said?

Speaking to The Guardian, Streeting said the government wants to explore a solution that could avoid further legal action.

However, he has not committed to changing the compensation rules, and no settlement has been announced.

The government maintains that assessing cases without formal dismissal records is complicated.

But for the veterans challenging the scheme, the central question remains simple: should someone receive less compensation because they were pressured to resign rather than officially sacked?

A Shameful Chapter of British Military History

Until January 2000, gay and lesbian people were banned from serving openly in Britain’s armed forces.

Those discovered could face investigations, dismissal and the destruction of their military careers.

In response to that history, the government introduced the £75 million LGBT Financial Recognition Scheme.

The programme offers eligible veterans a £50,000 dismissal payment and, where applicable, additional compensation of up to £20,000 for other harms.

Similar questions about how governments support LGBTQ+ service personnel have also emerged internationally. As The Gayly Mirror previously reported, California introduced additional protections for transgender servicemembers.

Important: The Compensation Deadline Is Approaching

Eligible veterans have until 11:59pm on 12 December 2026 to apply for financial recognition.

Those affected by the historic ban can find eligibility criteria and instructions on the official UK Government application page.

The upcoming High Court hearing could determine whether the veterans’ legal challenge proceeds to a full judicial review.

Recognition Must Mean Fairness

The government’s efforts to acknowledge decades of discrimination represent an important step forward. But compensation should also reflect the realities of what happened to those who served.

For Stewart, Shephard and potentially other affected veterans, this dispute is about much more than money. It concerns lost careers, damaged lives and the recognition they believe has been denied.

Being forced to resign and being formally dismissed may look different on paper. For the people who lost their careers, the consequences could be remarkably similar.