UK Veterans Forced to Resign for Being Gay Launch Legal Action Against Ministry of Defence
Two British veterans who were effectively compelled to resign from the armed forces due to their sexuality have initiated legal proceedings against the Ministry of Defence (MoD) over what they describe as a structurally unfair compensation scheme. Steven Stewart, aged 55, and Mark Shephard, aged 49, both endured significant psychological and relational harm after being forced out of military service because of a longstanding ban on LGBT personnel.
Legal Challenge Against LGBT Financial Recognition Scheme
The legal claim, filed by law firm Irwin Mitchell on behalf of Stewart and Shephard, targets the rules of the LGBT Financial Recognition Scheme. This scheme was established in 2024 following Labour ministers' approval of a £75 million compensation package for victims of the policy that banned gay men and lesbian women from serving in the British military until 2000. The policy resulted in approximately 200-250 personnel being discharged annually, though exact figures remain unclear due to inadequate record-keeping.
Barrister Kate Gallafent KC, representing the veterans, argued in court documents that the scheme's design is inherently biased. She highlighted that individuals who were constructively dismissed or forced to resign are ineligible for the larger flat-rate payment of £50,000, which is reserved for those formally dismissed or administratively discharged. Instead, they can only receive impact payments of up to £20,000, determined by an independent panel.
Personal Stories of Hardship and Injustice
Steven Stewart served as a corporal in the Royal Military Police from 1988 to 1995. During his service, he faced confusion about his sexuality and was ultimately arrested, interviewed under caution, and removed from his unit. He resigned after being threatened with a court martial and potential imprisonment. Stewart recounted, "Leaving under those circumstances was devastating. My military career ended overnight. The impact of that decision has stayed with me ever since." He received a £7,000 impact payment but was denied the larger sum due to ineligibility.
Mark Shephard served in the Royal Air Force from 1995 to 2001, enduring persistent and severe bullying. In 1999, his commanding officer directly questioned him about his sexuality, and upon confirming he was gay—unaware of the ban at the time—he applied for voluntary release to avoid summary dismissal. Shephard was awarded a £5,000 impact payment, similarly barred from the higher compensation.
MoD Response and Broader Implications
An MoD spokesperson expressed deep regret for the treatment of LGBT serving personnel between 1967 and 2000, acknowledging it as wholly unacceptable and not reflective of modern defence practices. The spokesperson stated, "Whilst we acknowledge the hurt caused to veterans who felt compelled to resign, the dismissed and discharged payment was designed to recognise those who were dishonourably removed from service."
The compensation scheme emerged from dozens of recommendations in Lord Etherton's independent 2023 review of the ban. However, Gallafent emphasized that veterans like Stewart and Shephard, who were compelled to resign under duress, will receive tens of thousands of pounds less than those administratively discharged, perpetuating what they view as structural unfairness.
No hearing date has been set for the legal claim, which underscores ongoing tensions between historical injustices and contemporary redress mechanisms. This case highlights the enduring legacy of discriminatory policies and the complex challenges in rectifying past wrongs within institutional frameworks.



