Thousands of LGBT veterans ejected from military can receive up to £70k compensation to right ‘historic wrongs’

Thousands of veterans who were ejected from the military because of their sexual orientation or gender identity will be able to receive up to £70,000 each in compensation to correct “historic wrongs”.

John Healey, the defence secretary, described the past treatment of LGBT soldiers, sailors and aviators as a “moral stain on our nation”.

Between 1967 and 2000, lesbian, gay, bisexual and transgender (LGBT) personnel were banned from serving in the armed forces, leading to people being dismissed or discharged and in some cases harassed.

Everyone who is eligible can apply to receive a £50,000 payout from Friday under what is being called the LGBT Financial Recognition Scheme.

On top of being dismissed or discharged, those who also endured harassment or ill-treatment while serving because of their sexuality or gender orientation – including being sent to military prison – can also apply for up to an additional £20,000.

All impacted veterans can request to have their rank restored and discharge reason amended.

“The historic treatment of LGBT veterans was a moral stain on our nation,” Mr Healey said in a statement.

He added: “Our government is determined to right the wrongs of the past and recognise the hurt that too many endured.”

The number of impacted veterans is not clear but government modelling has produced estimates of less than 4,000 personnel. It is not known how many will apply.

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An earlier review made a series of recommendations to correct the “historic wrongs” suffered by LGBT personnel.

They were accepted by the previous Conservative government and are being implemented under the new Labour administration.

The Ministry of Defence said the money set aside to compensate veterans under the new scheme will be £75 million – 50% higher than had been suggested by the Etherton Review.

Alistair Carns, the veterans minister, said: “The treatment of LGBT people is a shameful chapter in the history of our armed forces and we are working hard to address the wrongs of the past.

“We fully welcome our LGBT veterans back into defence and acknowledge their vital contribution to keeping the nation safe.”