MPs have said the compensation fund for veterans who were dismissed from the armed forces for being gay is not generous enough.

Labor MPs said the £50m that has been allocated under a government scheme means LGBT veterans who have been forced out of their jobs could receive around £12,500.

The so-called “gay ban” in force in the armed forces was lifted in 2000.

Previously, LGBT service personnel faced lengthy investigations before being fired and stripped of their medals and rank.

A review by Lord Etherton in 2023 examined the experience of LGBT veterans, leading to the establishment of the compensation scheme.

Burnley Labor MP Oliver Ryan, who called the debate on the adjournment, told the Commons: “Although the previous government offered a formal apology and took significant steps to implement many of the reviews’ recommendations, the fund allocated for the £50m compensation plan falls short. , inadequately compensating the approximately 4,000 LGBT veterans and those affected by discriminatory practices.

“This amount is insufficient to address the depth of damage inflicted or the number of people whose lives have been shattered in many cases.

“We must advocate for a more substantial commitment to financial reparations, one that reflects the true magnitude of the injustice these people suffer and that seeks to make meaningful reparations.”

Hundreds of armed forces personnel were dismissed for their sexuality each year in the 1980s, LGBT activist Peter Tatchell previously said.

Affected veterans can request restorative measures on the Government website.

Applications will open at the end of the year, Veterans Minister Al Carns said, and will remain open for two years. Before entering the House of Commons, Carns had served in the Royal Marines in Afghanistan and was awarded the Military Cross.

Chris Ward, Labor MP for Brighton Kemptown and Peaceheaven referred to Steve, a constituent who was dismissed by the RAF in 1985 for a relationship with a male officer.

He said: “He made the mistake of telling the truth and was sentenced to six months in jail. He lost his rank, he lost all his financial benefits, he lost his family, and he lost a career he loved.

“When he was released he was 28 years old, homeless and had nowhere to turn.

“I met Steve, he is a man of great honor and courage, but these were the words he said to me: ‘I felt ashamed, my career was destroyed, I had a criminal record, I had no pension and I had to live paycheck to paycheck for the rest of my life. life surviving on profits.

“As we heard today, it’s not even an outlier.”

He added: “While I also recognize the financial situation in which this Government operates, capping payments at an average of £12,500 per person may be truly appropriate for the level of injustice suffered by people like Steve and so many other LGBT veterans.”

Mr Ward’s Labor Party colleague Tim Roca (Macclesfield) said: “I am concerned, like others, that a cap has been placed on the compensation scheme for the 4,000 veterans who lost their careers due to institutional intolerance. of the British State.

“How can it be right that £12,500 is considered enough for your own chaplain to launch an investigation and subsequent interrogation by the Special Investigation Section?

“In return for their willingness to serve, the British state treated thousands of people with contempt, exposing them to state sanction and institutionalized homophobia, leaving them isolated from their friends and family.

“I’m glad we’re building a new consensus, but let’s take that consensus a step further and make sure those 4,000 brave and selfless service men and women get the compensation and reparations they deserve.”

Carns said he had spoken at the LGBTQ+ Defense Awards earlier this year and had told guests: “Anyone can dodge bullets, bombs or artillery fire, but fight against the tide when everything is coming at you and continue the fight in the fight. because justice is praiseworthy.”

He described the treatment of LGBT staff between 1967 and 2000 as “completely unacceptable”.

“The ministry was on the wrong side of history,” he added.

Carns added: “Of course, I have been aware of the speculation and have heard some figures in relation to this fund. “I trust colleagues understand that while we continue our work to finalize its modalities, it is too early to comment on exact figures.”