Military
What is the LGBT Financial Recognition Scheme?
Our experts explain everything you need to know about the financial recognition scheme.
The Financial Recognition Scheme is an initiative designed to acknowledge and address the injustices suffered by veterans who were affected by the ban on LGBT personnel serving in the UK Armed Forces. This ban, which was in effect from 27th July 1967 to 11th January 2000, caused untold harm to individuals discharged due to their sexual orientation or gender identity.
This government scheme was announced following the publication of the Etherton Report in July 2023, with the scheme representing an important step towards restorative justice. The UK Government has allocated £75 million to fund recognition payments, offering financial and non-financial remedies to those who faced discrimination during their service.
Who is eligible for the Financial Recognition Scheme?
To qualify, applicants must meet the following criteria:
- You must have served in HM Armed Forces between 27th July 1967 and 11th January 2000.
- You must have been directly or indirectly affected by the ban on LGBT personnel serving in the Armed Forces.
The types of payments available are:
Dismissed or Discharged (DD) Payment
This is a payment intended for those who were dismissed or administratively discharged, including Officers, who were ordered or instructed to resign or retire by their respective Service Board, based on their actual or perceived sexual orientation or gender identity during the Ban. This payment is not available to personnel who left of their own volition or who chose not to extend their service. If they felt pressured to do so, they may be eligible for the Impact Payment. The payment available is up to £50,000.
This payment is not available to those who voluntarily left the service, except for cases where individuals were pressured to leave. Such cases may instead qualify for the Impact Payment.
Impact Payment
The Impact Payment compensates individuals for the harm experienced during their service due to the ban. The payment amount is determined based on the level of impact as outlined in the Financial Recognition Scheme Rules.
Payment Levels:
- Level 1: £1,000–£5,000
- Level 2: £5,001–£10,000
- Level 3: £10,001–£20,000
Applicants eligible for a DD Payment can still apply for an Impact Payment to account for additional harm endured. Impact Payments only consider the harm felt during service and not the life-long consequences experienced after leaving the Armed Forces.
How to apply
The government have prepared a guide on how to apply here. Applications can be submitted either online or in writing.
Applicants must create a detailed impact statement outlining the ways in which the ban affected them. While necessary, this process may be triggering, so it’s recommended to take your time and seek support if needed.
If applying online, once submitted, you have a two-week window to make any amendments. Applications can also be tracked via the FRS App.
DD Payments will be assessed by the Ministry of Defence, while Impact Payments will be evaluated by an Independent Panel. Decisions will be based on evidence provided, including Service records where available. Applicants should aim to gather as much relevant documentation as possible. The process begins with a reverse burden of proof, meaning that the facts applicants present will be accepted unless contradicted by other evidence. However, individuals claiming medical conditions linked to the ban will need evidence from a qualified medical expert.
The Government has ensured that payments under the scheme will be exempt from HMRC taxes and will not impact means-tested state benefits assessed by the DWP.
If you’re unhappy with the outcome of your application, you have the right to appeal. Appeals can only be raised on specific grounds:
- A procedural error occurred during the application process.
- The decision was based on an error in fact.
- New evidence has surfaced that could materially change the decision.
Appeals must be lodged within two months of receiving the decision. However, once a payment has been accepted, applicants lose the right to appeal, so careful consideration is advised before accepting any decision.
How can Slater and Gordon help?
Applying for the Financial Recognition Scheme can be complex and emotionally challenging. At Slater and Gordon, our Military Claims Team is here to provide expert guidance and support. We can guide you through every step of the application process and investigate whether you may be eligible for additional claims related to the impact of the ban on your life, health, and sense of self. This scheme is a significant step toward justice for LGBTQ+ veterans. If you or someone you know is eligible, consider reaching out to ensure these vital benefits and acknowledgments are received.
For more help and support, contact Natasha Orr, Military Team Leader and Senior Associate, here. Natasha.orr@slatergordon.uk
