Dismissed LGBTQ+ veterans launch legal action against Ministry of Defence over payout loophole
"The impact of that decision has stayed with me ever since," said former Royal Military Police officer Steven Stewart
By Aaron Sugg
Two military veterans, Mark Shephard and Steven Stewart, have launched legal action against the Ministry of Defence (MoD) after being refused the full LGBT Dismissal Payment.
After suffering “enduring harm” during their time in the armed forces, the men claim they were effectively forced to resign due to their sexuality.
They said they were later denied the full LGBT Dismissed or Discharged Payment because they were not officially dismissed or discharged, despite feeling pressured to leave.
Who does the LGBT Dismissed or Discharged Payment apply to?
The LGBT Dismissed or Discharged Payment was introduced in 2024 to compensate service members forced out of the armed forces between 27 July 1967 and 11 January 2000. The scheme offers up to £50,000 to those discharged under the ban.
Stewart and Shephard received £7,000 and £5,000 impact payments, respectively, but applications for the larger payments were refused.
The levels of dismissal payments are as outlined below:
| LGBT Dismissed or Discharged Payment | £50,000 |
|---|---|
| LGBT Impact Payment – Levels | Financial Recognition Tariff Range |
| Level 1 | £1,000 to £5,000 |
| Level 2 | £5,001 to £10,000 |
| Level 3 | £10,001 to £20,000 |
According to the official government website, the compensation applies to: “Those who were dismissed or administratively discharged, including officers who were ordered or instructed to resign or retire by their respective Service Board, solely on the basis of their actual or perceived sexual orientation or gender identity during the Ban.”
“I was left with no real choice” – Steven Stewart claiming he was forced to leave the British Army
Law firm Irwin Mitchell confirmed the veterans are challenging the rules of the MoD’s LGBT Financial Recognition Scheme.
Stewart, a former Royal Military Police officer from 1988 to 1995, told BBC News: “I had done nothing wrong, but I was left with no real choice.”
“Leaving under those circumstances was devastating. My military career ended overnight. The impact of that decision has stayed with me ever since.”
Mark Shephard claimed he experienced “severe bullying” whilst serving in the RAF
Shephard, who served in the RAF from 1995 to 2001, said he was pressured into coming out to his commanding officer after experiencing “severe bullying”. No date has been set for the hearing.
Attitude has contacted the Ministry of Defence for comment.
The legal challenge follows a similar case involving British Army veteran Michael Pitchford, who was also denied payment following a pressured early dismissal for being gay.
A spokesperson for the MoD said at the time, “We deeply regret the treatment of LGBT serving personnel between 1967 and 2000, which was wholly unacceptable and this is not representative of Defence today.”