LGBT veterans will receive up to £70,000 each to acknowledge the historic wrongs they experienced in the Armed Forces, the Ministry of Defence is expected to announce on Thursday.
Defence secretary John Healey is also set to announce veterans will have their ranks restored and discharge reasons amended, according to a leaked memo. A ban on lesbian, gay and bisexual people serving in the armed forces was lifted in 2000, while transgender people were officially allowed to openly serve in 2014.
Former LGBT military personnel dismissed or discharged because of their sexual orientation will reportedly receive £50,000, while additional payments of up to £20,000 will be handed to veterans serving personnel who were negatively impacted by the ban from 1967 to 2000 during their time in service.
Under the ban, serving members of the forces discovered to be LGBT were subject to brutal interrogation, and dismissal.
Some have faced lifelong consequences, including diminished career prospects, being vilified by family and friends, and no access to their military pensions.
The payments are expected to be exempt from income tax and means-tested benefits, ensuring veterans benefit from the full amount available.
As part of the redress scheme, the government is expected to increase the total amount available for payments to £75m - significantly above the £50m recommended in the Etherton Review into the treatment of LGBT veterans.
Veterans who were dismissed because of their sexual orientation or gender identity will also reportedly be able to apply to have their rank restored and discharge reason amended as part of the scheme, which will be open for two years.
It is expected to prioritise the applications of terminally ill veterans. MPs are set to debate the next steps to make amends on Thursday in the House of Commons.
A Ministry of Defence spokeswoman told The Times: “We deeply regret the treatment of LGBT serving personnel between 1967 and 2000, which was wholly unacceptable and does not reflect today’s armed forces.
“We are fully committed to ensuring this issue receives parliamentary scrutiny.
“We are delivering on all the recommendations from the LGBT veterans review, with 38 of the 49 already implemented.
“We are working with experts across government to establish an appropriate financial redress scheme and will provide more details very soon.”
The MoD has been contacted for comment.
