Legal Challenge Over LGBT Veterans Compensation

Defence Secretary Wes Streeting is seeking an out-of-court resolution to a High Court challenge concerning the Ministry of Defence’s LGBT financial recognition scheme introduced in 2024. Two former service members—Steven Stewart, a former Royal Military Police corporal, and Mark Shephard, a former Royal Air Force employee—have brought a judicial review after being denied the scheme’s £50,000 dismissal payment because their exits were recorded as resignations rather than formal dismissals. Stewart received £7,000 and Shephard £5,000 under a separate impact payment. A judge is slated to rule next week on whether the pair may proceed with the review.

The Guardian

Gay men and lesbian women were barred from serving in the British armed forces until 2000. The 2024 scheme was designed to compensate veterans forced out because of their sexuality, allocating £75 million in total. Over £60 million has already been disbursed, but the Ministry estimates many eligible veterans have yet to apply. Roughly 200–250 personnel were expelled each year under the former ban, though precise records are lacking.

The Guardian

He urged any eligible veteran who has not yet applied to do so, noting the remaining funds. Streeting also linked the issue to broader concerns for trans service personnel, asserting a “personnel responsibility” to prevent repeat injustices.

The Guardian

• “I’d say to people, if you are one of those veterans who haven’t yet applied please do, the money is there, we’ve got £75m allocated to this. Over £60m has already gone, but I’m sure there are still more people who could benefit so we want to make sure we get people the compensation that they’re owed.” — Wes Streeting, Britain’s first out gay defence secretary

The Guardian

• “I have a personnel responsibility to make sure that we don’t see a repeat of those indignities and those injustices for our trans service personnel,” — Wes Streeting, Britain’s first out gay defence secretary

The Guardian

• “We’re still finding our way on this … we’re not inundated with huge numbers of trans people serving. It does mean we can get this right on a case by case basis. I want every member of our armed forces to know I’ve got their backs. I want every trans person serving in our armed forces to know I’m proud of them and their service.” — Wes Streeting, Britain’s first out gay defence secretary

The Guardian

The Ministry has earmarked £75 million for the compensation programme, with more than £60 million already paid out. Streeting indicated that the government will keep discussions ongoing and explore solutions that might avoid further litigation, though no concrete rule change has been promised. The pending High Court decision will determine whether the judicial review proceeds, potentially prompting a review of the scheme’s eligibility criteria.

The Guardian