LGBT veterans challenge compensation scheme in High Court

Two LGBT veterans are due in the High Court later this month seeking to challenge the Ministry of Defence over claims that its compensation scheme unfairly excludes former Armed Forces personnel who were forced to leave the military because of their sexuality or gender identity.

Mark Shephard and Steven Stewart are challenging the Ministry of Defence's LGBT Financial Recognition Scheme, which was set up to compensate people affected by the former ban on LGBT people serving in the British military.

They argue that veterans formally discharged or dismissed because of their sexuality or gender identity can receive the scheme's £50,000 payment, while many who were forced to resign after facing discrimination, bullying or pressure to leave are limited to significantly lower awards.

The pair say this means veterans who suffered similar harm are being compensated differently depending on how they left military service. The pair will tell the court this is both contrary to the underlying purpose of the scheme and is unlawful.

Supported by Public Law and Human Rights lawyers at Irwin Mitchell, the veterans are seeking changes to the scheme and say the current rules have left hundreds of LGBT former service personnel unfairly denied full compensation.

A permission hearing is due to take place at the Administrative Court in London on 28 October 2026, where a judge will decide whether the veterans' challenge can proceed to a full hearing.

The case is backed by both Good Law Project, which has launched a crowdfunding campaign in support of the claimants, and national charity Fighting With Pride.

Angela Jackman KC (Hon), a Partner in the Public Law and Human Rights team at Irwin Mitchell, said: “I continue to praise the tenacity of Mr Shephard and Mr Stewart.

“I know it has been challenging for them to revisit traumatic memories of discrimination and mistreatment during and after their military service.

“However, they remain steadfast in their determination to have their experiences, and the issues affecting hundreds of LGBT veterans, heard by the court.

“Many LGBT veterans feel the scheme fails to recognise the reality of how they were driven out of military service and unfairly excludes them from the highest level of compensation.”

“Mark and Steven understand that this case goes further than them and is about much more than financial recompense. It is about ensuring that those affected by historic discrimination are treated fairly and receive the recognition they deserve, including for their lost careers and aspirations.”

Under the Scheme Rules, the cut-off date to apply for the LGBT Financial Recognition Scheme is 12 December 2026.

The court has acknowledged the importance of ensuring the case can be resolved before the scheme closes to applications on 12 December 2026.