For many years, individuals serving in HM Armed Forces who identified as part of the LGBT community were dismissed, investigated, bullied, or subjected to significant mistreatment simply because of their sexual orientation or gender identity. There was no criminal wrongdoing, no issue with competence or performance, but rather a discriminatory policy that had devastating consequences for careers, livelihoods, and personal lives.
To acknowledge these historic injustices, the Government introduced the LGBT Financial Recognition Scheme. While the Scheme does not compensate veterans for their financial losses, it provides formal recognition of the harm caused and the Armed Forces’ regret for the treatment endured by those affected.
Recently, we were approached by a client seeking assistance with an application under the Scheme. Until then, we had not been aware of its existence. Learning about both the Scheme and the experiences our client had endured was deeply moving and highlighted just how important it is that veterans who may be eligible are made aware of the support available.
What is the LGBT Financial Recognition Scheme?
The Scheme is open to those who served in HM Armed Forces between 27 July 1967 and 11 January 2000 and who suffered as a result of the ban on LGBT personnel.
There are two payments available:
1.LGBT Dismissed or Discharged Payment
This payment is intended for veterans who were dismissed or administratively discharged, including officers who were instructed or pressured by their Service Board to resign or retire, solely because of their actual or perceived sexual orientation or gender identity.
Successful applicants receive a payment of £50,000.
2. LGBT Impact Payment
This payment recognises the wider impact experienced by LGBT personnel who were affected by the ban, even where they were not formally dismissed.
Payments are awarded across three levels:
- Level 1: £1,000–£5,000
- Level 2: £5,001–£10,000
- Level 3: £10,001–£20,000
Applications for both payments are assessed together by an independent panel, separate from the Ministry of Defence.
Importantly, all payments are tax-free and do not affect means-tested benefits, ensuring veterans receive the full amount awarded.
Although there is no published timeframe for decisions, our client’s application was determined within six months.
It is important to remember that these payments are not compensation. Instead, they are intended to formally recognise the injustice suffered and acknowledge the Armed Forces’ regret for the treatment of LGBT personnel during this period.
Who Can Apply?
The Scheme is available to anyone who served in HM Armed Forces during the ban between 27 July 1967 and 11 January 2000 and experienced adverse treatment because of their sexual orientation or gender identity.
Eligible applicants may include:
- Veterans who were formally dismissed or discharged.
- Officers who were instructed, pressured, or required to resign or retire.
- Individuals who experienced bullying, investigations, career stagnation, harassment, or other forms of discrimination, even if they remained in service.
One of the most common misconceptions is that only those who were dismissed can apply. This is not the case. Veterans who experienced other forms of discrimination may still qualify for an LGBT Impact Payment.
Applications can be submitted personally or by an authorised legal representative where a veteran lacks capacity or simply wishes to receive assistance.
How to Apply
Applications can be submitted in one of two ways:
- Through the LGBT Financial Recognition Scheme App.
- By completing a paper application form.
Applicants will first need to register or log in through the Defence Gateway to verify their service identity.
Supporting evidence may include:
- Service records.
- Discharge documentation.
- Medical evidence.
- A personal statement explaining the impact of the discrimination experienced.
A detailed list of supporting evidence is available within the Government guidance.
Where an applicant lacks capacity, an authorised representative, such as someone acting under a Power of Attorney or a legal adviser, can submit the application on their behalf. It should be noted, however, that legal costs are not covered by the Scheme.
The Government does not specify exact assessment times but confirms applicants will receive regular updates. Applications from terminally ill veterans are prioritised.
Where appropriate, decisions may be appealed in accordance with Part 5 of the Scheme Rules. Appeals must satisfy the Scheme’s criteria and should be supported by appropriate evidence.
Our Client’s Story
Our client contacted us in February 2025 after learning about the LGBT Financial Recognition Scheme.
He had joined the Army during the 1970s and was initially posted to Europe on a three-year engagement. He enjoyed military life and chose to extend his service for a further three years.
Following a transfer to another unit, however, his experience changed dramatically.He was openly told that colleagues were aware of his bisexuality and was subjected to bullying and less favourable treatment because of his sexuality.
During the 1980s, he attended a meeting with a senior officer where he confirmed that he had strong bisexual tendencies. Within a month, he was removed from his position and dismissed under the vague explanation that his “service was no longer required.”
After discovering the Financial Recognition Scheme, he approached us for assistance with his application. Within six months, he received the £50,000 LGBT Dismissed or Discharged Payment. While no payment can restore the career he lost or undo the treatment he experienced, receiving formal recognition represented an important moment of acknowledgement after many years. It validated his experience and demonstrated a willingness to recognise the injustice suffered by LGBT veterans.
Raising Awareness
Many veterans remain unaware that this Scheme exists.
If you, or someone you know, served in HM Armed Forces during the ban and experienced discrimination because of sexual orientation or gender identity, it may be worth exploring whether an application can be made.
The deadline for applications is 12 December 2026, and we encourage anyone who believes they may be eligible to apply as soon as possible.
Useful Links
How to Apply:
Scheme Rules:
Defence Gateway:
https://oauth2.defencegateway.mod.uk/lgbt
Recalling these experiences can be distressing. If you require emotional or practical support during or after your application, information about available support services can be found here:
https://www.gov.uk/government/collections/lgbt-veterans-support-and-next-steps
