The United Kingdom’s Ministry of Defence (MoD) has come under fire from two former service personnel who say the newly created LGBT Financial Recognition Scheme discriminates against those who were compelled to quit rather than being formally dismissed. Their challenge has cleared the first procedural hurdle, with a senior judge granting permission for a full judicial review slated for early next year.
In a separate development on the Mediterranean island of North Cyprus, a court handed down the territory’s inaugural conviction for a hate crime motivated by sexual orientation. The verdict marks a symbolic step forward for LGBT protections in a region that only de-criminalised homosexual activity in 2014.
UK veterans demand fair compensation from the MoD
Steven Stewart and Mark Shephard, both forced to leave the armed forces between 1967 and 2000 because of the historic ban on gay personnel, received modest sums of £7,000 and £5,000 respectively under the LGBT Financial Recognition Scheme. The scheme, launched in 2024, offers a £50,000 lump sum to those who were formally dismissed and an additional “impact payment” of up to £20,000 for anyone harmed by the policy.
Because the MoD classifies the veterans’ departures as “voluntary”, Stewart and Shephard were deemed ineligible for the higher tier of payments. Their legal representatives argue that this distinction is both irrational and unfair, contending that a forced resignation is effectively equivalent to a dismissal in terms of career damage and personal trauma.
Mrs Justice Eady, sitting in London, stated that the case “warrants further consideration by the court” and ordered a full judicial review, likely to be heard in January. The judge’s decision signals that the court recognises the potential merit of the claim, even though the Ministry maintains that the scheme’s budget constraints justify the current eligibility rules.
The MoD has spent roughly £75 million on the program and warns that expanding it to cover forced resignations could require “a very significant additional sum”. Nevertheless, advocacy group Fighting with Pride estimates that several hundred former personnel may fall into the same category, with around 70 already engaged through legal counsel.
North Cyprus records its first homophobic hate-crime conviction
In the Turkish-controlled part of Cyprus, a district court sentenced Ergun Sunmez to six months in prison for a combined assault and hate-crime offence. The incident, which unfolded in September 2023, involved Sunmez attacking his ex-wife, Pinar Tas, and directing homophobic slurs at a third party, Berna Numan, who was present at the scene.
The court distinguished the physical aggression against Tas – punished with a five-month term – from the hate-motivated insult aimed at Numan, which attracted an additional one-month sentence. In its reasoning, the judges stressed that a hate crime requires a demonstrable prejudice-based motive, not merely a general intent to harm.
North Cyprus had only recently repealed its anti-homosexuality law in 2014, becoming the last European territory to do so. While the repeal also introduced anti-discrimination provisions, same-sex couples still lack legal recognition, and gay men risk discharge from the Turkish-Cypriot security forces if outed.
The conviction is being hailed by local LGBT advocates as a landmark – the first time a court has formally linked criminal conduct to sexual-orientation bias on the island. It underscores a gradual shift in legal attitudes despite the region’s historically conservative stance.
Wider implications for LGBT rights across Europe
Both cases illustrate how legal mechanisms are being tested to address historic injustices against LGBT individuals. In the UK, a successful judicial review could force the MoD to redesign its compensation framework, potentially unlocking tens of thousands of pounds for veterans who were forced out under the old ban.
In North Cyprus, the precedent set by Sunmez’s sentencing may encourage prosecutors to pursue more hate-crime charges, reinforcing the 2014 anti-discrimination reforms. Observers suggest that these developments could ripple through other jurisdictions still grappling with legacy policies, prompting a reevaluation of how state institutions compensate or punish actions rooted in sexual-orientation prejudice.
For anyone who believes they may be eligible for the MoD’s scheme, the deadline for new applications is 12 December 2026. Advocacy groups continue to urge potential claimants to come forward before the window closes.
