Gay Vets Keep Benefits After Payouts

LGBT veterans in Scotland are finally getting a sliver of justice—and this time, they won’t have to give anything up for it. The Scottish government confirmed that compensation payouts for queer veterans booted from the armed forces under an archaic anti-LGBT ban won’t count against their means-tested benefits.

That means recipients of the UK’s LGBT Financial Recognition Scheme—designed to make amends for decades of state-sanctioned homophobia—can receive up to £70,000 in compensation and still get help through the council tax reduction scheme. That’s real progress in a system that spent decades turning its back on those who served.

Between 1967 and 2000, being gay, lesbian, bi or trans in the British armed forces could get you dishonorably discharged, interrogated, imprisoned, or hounded out with your dignity in tatters. Now, thanks to years of dogged activism, including by Peter Gibson of Fighting With Pride, the UK government has earmarked £75 million to acknowledge the “horrendous treatment” of queer service members. Awards start at £50,000 for those discharged, with additional payments of up to £20,000 for those who suffered harassment or worse.

Finance Secretary Shona Robison announced the Scottish government’s move to shield these payments from affecting other benefits: “As we mark 25 years since the ban was lifted, it is important to recognise the hardship that so many faced.” Robison added, “Nothing will make up for what LGBT veterans endured, but this ensures they get every penny they deserve.”

Scotland Steps Up Where It Counts

The UK government’s scheme might be rolling out at glacial pace, but Scotland is clearly determined to not let bureaucracy steal the spotlight—or the money. “It is wonderful to see the Scottish government taking action to ensure other benefits such as council tax benefit is also protected too,” said Gibson. He emphasized that this is “one more step toward helping those in Scotland,” while his team continues tracking down veterans who were discharged for being LGBTQ.

What’s remarkable is that for once, policy is aligning with justice. For the LGBTQ community—especially older veterans who lived through eras of shame, silence, and institutional betrayal—this isn’t just about financial compensation. It’s about recognition. About finally being seen and respected for who they are and how they served.

It’s also a signal to other governments: when you finally pay up for discrimination, don’t insult veterans by cutting their other lifelines. In the fight for equality, symbolic gestures aren’t enough. Money talks—and systems must change with it. Scotland just raised the bar.