Veterans challenge MoD over LGBT compensation scheme rules

Veteran claims scheme is unfair due to resignation exclusions

Author: Grace O'HarePublished 8th Apr 2026

A veteran from Taunton, Somerset, has joined a legal challenge against the Ministry of Defence (MoD) over its LGBT Financial Recognition Scheme rules.

Mark Shephard, who served in the Royal Air Force from 1995 to 2001, argues that the scheme's exclusion of those who resigned due to their sexuality is structurally unfair.

He claims he was “driven out” of his career following severe bullying and unwelcome questioning about his sexuality, leading him to apply for voluntary release rather than face dismissal.

Alongside Steven Stewart, another veteran affected by the historical ban on LGBT personnel serving in the armed forces, Shephard contends that veterans like him receive less compensation than those formally discharged.

Their legal representatives, Irwin Mitchell, have filed a claim, citing the scheme’s failure to recognise the harm suffered by personnel who felt compelled to leave the forces rather than face formal dismissal.

The MoD has expressed regret over past treatment of LGBT personnel, stating that it is committed to addressing historical wrongs.

Although the scheme has been expanded to offer an additional impact payment, critics argue that it continues to inadequately compensate those affected by the informal pressures and hostilities.

Both veterans received lower impact payments compared to the £50,000 awarded to those officially discharged, despite enduring significant psychological and career impacts.

The legal challenge underscores the continuing quest for justice and equality for affected veterans.

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