Veterans win first stage of legal battle over MoD’s compensation scheme
Court rules claims about unfair payments can proceed
Two veterans claiming that they missed out on tens of thousands of pounds due to an “unfair and irrational” Ministry of Defence (MoD) scheme have won the first stage of their court battle.
Steven Stewart and Mark Shephard were both forced to leave the military because of their sexuality or perceived sexuality under a ban on LGBT personnel from 1967 to 2000.
Although eligible for the LGBT Financial Recognition Scheme, set up in 2024 by the MoD, they received £7,000 and £5,000 respectively but were denied larger payments on the grounds that they were not formally dismissed or discharged.
Mrs Justice Eady ruled that their claims are substantial enough to warrant a full hearing, likely to happen in January.
The MoD scheme provides a flat-rate payment of £50,000 for those dismissed and “impact payments” of up to £20,000 for those affected by the ban.
It has been argued that those dismissed receive up to £70,000 total, while those forced to resign receive less.
Mr Stewart, who served as a corporal in the Royal Military Police, was subjected to a court martial threat and told he would face prison, prompting his resignation.
Mr Shephard, who served in the Royal Air Force, experienced bullying and revealed his sexuality accidentally, then chose resignation over dismissal.
The MoD contends the scheme is fair due to budget constraints and denies legal liability.
Despite the impact on their careers and personal lives, the veterans hope their experience will lead to further court consideration.