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Veterans threaten MoD with legal action over LGBT compensation scheme

Two veterans and around 40 others challenge the Ministry of Defence over rank-based exclusion from a £50,000 compensation scheme for LGBT+ personnel dismissed under the ban.

  • On 18 February 2026, lawyers acting for Steve Stewart, veteran, and Mark Shephard, veteran, issued a formal letter before action after both were rejected from the Financial Recognition Scheme, part of around 40 refused applicants.
  • The scheme, opened in December 2024, makes commissioned officers eligible for compensation but excludes many non-commissioned ranks who felt pressured to leave.
  • The scheme offers a £50,000 Dismissed or Discharged Payment and up to £20,000 extra for additional harms, with the 1967–2000 ban period leading to intrusive investigations and long-term injuries.
  • Seeking a court challenge, lawyers say the scheme 'does not operate fairly between individuals who were differently ranked during service' and predict legal action may cause MoD embarrassment, which has said it 'deeply regrets' past treatment.
  • Pressure on ministers grows as some eligible veterans have died while awaiting payouts, and campaigners from Fighting With Pride warn the scheme creates fresh barriers despite King Charles III's October 2025 National Memorial Arboretum memorial dedication.
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  • 67% of the sources lean Left
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Daily Mirror broke the news in London, United Kingdom on Saturday, February 14, 2026.
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