Strip Ministry of Defence's compensation duties after handling failures, report urges

A report by a group of MPs has called for government compensation schemes, including one currently being delivered by the Ministry of Defence, to be instead managed by a new independent body.

The Public Accounts Committee (PAC) singled out the MOD for failures around its LGBT Financial Recognition Scheme (FRS), designed to compensate veterans impacted by the ban on gay people serving in Britain's Armed Forces.

As well as highlighting a "deep-seated" lack of trust among veterans towards the MOD, the report also criticised the department’s efforts to adequately advertise its compensation scheme widely enough among those impacted by the ban.

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So many frustrations, charity says 

Speaking to BFBS Forces News, Peter Gibson, the chief executive of service charity, Fighting with Pride, said there had been "so many frustrations" with the MOD over the course of the past two years while the compensation scheme had been in place.

"We've seen a great deal of mistrust from our veterans engaging with the FRS scheme," Mr Gibson said.

"First of all, we had the delays to the setting up of the scheme, delays to the appointment of a panel chair, the delays to the appointment of a panel, the failure to provide the right IT and the failure to provide ongoing updates."

Mr Gibson also said his organisation had been "battling" with the MOD over these issues, and that the relationship between the MOD and his organisation had worsened throughout the process.

Post Office Horizon, infected blood and Windrush scandals 

Alongside the ban on LGBT people serving in the military, the Public Accounts Committee also looked at compensation schemes for the Post Office Horizon, infected blood, and Windrush scandals.

Across the board, the report found that compensation schemes were frequently launched without the consultation of impacted communities, leading to "too many schemes being launched without fully understanding issues faced by victims."

The compensation scheme for veterans impacted by the ban on homosexuality in Britain’s Armed Forces launched in December 2024 with a strict 24-month window for claims to be made. But the committee's report highlights that crucial IT systems needed for the effective delivery of the scheme were delayed, and that promised regular updates on the progress of claims had not been forthcoming.

In July 2025, BFBS Forces News reported that the then-Veterans Minister Al Carns had directed that there should be more staff to get on top of what was by then already a backlog of processing claims made under the scheme. 

Then, in February this year, two veterans who had been refused payments launched a High Court legal challenge over eligibility rules. 

There have also been complaints about the treatment of veterans who were dismissed before 1967, when the law in the UK around homosexuality changed. The military maintained the law banning gay people until January 2000.

A hundred days to go campaign

Earlier this month, the MOD launched a '100 days to go' campaign aimed at reminding veterans that the compensation scheme closes in December. But Fighting with Pride said this marketing activity has come too late in the process.

"To launch a campaign just 100 days before this scheme closes, my fear, my genuine real fear is, this is too little, too late. They should have been doing this from January last year when the scheme was launched," Mr Gibson said.

BFBS Forces News understands that the MOD will set out a departmental response to the committee's report in due course. 

In a statement, a spokesperson said: "We deeply regret the treatment of LGBT serving personnel between 1967 and 2000, which was wholly unacceptable. We are committed to righting these wrongs, including through our Financial Recognition Scheme.

"Since the launch of the scheme in December 2024, we have worked tirelessly with local councils, the NHS, regimental associations and publications, community groups, Veterans’ Commissioners, veteran employers and LGBT and military charities to enhance awareness of the scheme and encourage veterans to come forward.

"We've allocated £90,000 to charities and are working with an agency to find innovative ways of reaching eligible veterans who may not yet have been reached."