Guidance

LGBT Financial Recognition Scheme guide: How to apply for a Financial Recognition Payment

Published 13 December 2024

Who this guide is for

This guide is to help those wishing to apply for a Financial Recognition Payment.

Who can apply for a Financial Recognition Payment?

Please check the eligibility criteria at LGBT veterans: support and next steps.

To be eligible for a Financial Recognition Payment, the applicant has to have:

• served in HM Armed Forces between 27 July 1967 and 11 January 2000
• been affected by the Ban on LGBT personnel serving in HM Armed Forces.

There are two types of Financial Recognition Payments:

LGBT Dismissed or Discharged Payment. A payment for those who were dismissed or administratively discharged, including Officers who were ordered or instructed to resign or retire by their respective Service Board, solely on the basis of their actual or perceived sexual orientation or gender identity during the Ban.

LGBT Impact Payment. A payment for those who fulfil the criteria in one of the levels (Levels 1 to 3) outlined in the Financial Recognition Payment Types and Tariff Table - LGBT Financial Recognition Scheme Rules Annex B. The payment reflects the personal impact which the Ban had on applicants during the period of their service in HM Armed Forces up to the point they left service.

LGBT Dismissed or Discharged Payment	£50,000
LGBT Impact Payment – Levels	Financial Recognition Tariff Range
Level 1	£1,000 to £5,000
Level 2	£5,001 to £10,000
Level 3	£10,001 to £20,000

Applying

All applications will be processed in accordance with the LGBT Financial Recognition Scheme Rules.

You can only apply via the LGBT Financial Recognition Scheme app or by using an official LGBT Financial Recognition Scheme hard copy application form.

Applicants must have served in HM Armed Forces during the period of the Ban.

Applications should be completed as fully as possible. We will contact you if we have any questions regarding your application or if we need further information from you. Please take your time to complete your application form. The application window will be open for 24 months.

Contacting the Financial Recognition Scheme

The Financial Recognition Scheme can be contacted by:

Email: LGBT-FRScheme@mod.gov.uk

Post: Freepost LGBT FR SCHEME

Please include your service number and current last name in the email subject line or on the letter head. If your last name was different during your service, include it in brackets after your current last name.

Supporting documents

We encourage you to include any supporting documents or evidence with your application. If you do not have supporting documents, or choose not to provide them, please include as much detail as possible in your written account of what happened. This will help us assess your application. You will not be called to give any evidence in person.

A copy of your application

After you have submitted your online application, you will receive an automated email to confirm that a copy of your application is available for download or printing from the LGBT Financial Recognition Scheme app.

You can sign in at any time to access the latest copy of your application. If you make changes within the first  2 weeks after submission, you will be notified when the latest version is available for download or printing. If you are submitting a hard copy application you are strongly advised to take a copy for your own records.

Providing consent to release information

To process your application, we will require your consent to access personnel files held by the MOD. These files will form the basis of your case file which will be used to process your application for a Financial Recognition Payment. If we require access to your medical files, we will seek your consent separately.

Application window

The Financial Recognition Scheme will be open for applications for 24 months from the date the Financial Recognition Scheme is launched. No applications will be accepted before the application window is opened or after it closes.

Changing your application

You can make changes to your online application within  2 weeks of it being submitted. After this period, your application will move to the initial application check phase.  The Financial Recognition Scheme will let you know when your application starts undergoing its initial application check. For online or hard copy applicants, if you need to make minor amendments or updates after the application has entered the initial application check phase, please contact the LGBT Financial Recognitions Scheme, as soon as possible, by either:

Email: LGBT-FRScheme@mod.gov.uk

Post: Freepost LGBT FR SCHEME

Terminally ill applicants

The LGBT Financial Recognition Scheme will prioritise applications from applicants who are terminally ill. The applicant will have the opportunity to declare that they have a terminal illness diagnosis when they apply and will need to submit evidence to support this. This could include:

• a letter from your GP, consultant or other suitably qualified medical professional
• confirmation that you are in receipt of DWP Special Rules (SR1) allowance
• a letter from a hospice care provider

We know that this will be a sensitive time for the applicant and their family and friends. The LGBT Financial Recognition Scheme has a medical officer who reviews all evidence related to terminal illness diagnoses. If follow-up questions arise, the medical officer will contact the applicant directly.

If an applicant is diagnosed with a terminal illness after submitting their application, they should contact the Financial Recognition Scheme by email or letter with supporting evidence.

This will then be reviewed by the medical officer and the application will be prioritised. If the applicant becomes too unwell to contact the Financial Recognition Scheme themselves, they can appoint a legal representative to do so on their behalf (see Scheme Rules Part 3 at LGBT Financial Recognition Scheme guide: How to apply for a Financial Recognition Payment.

Applicants who lack capacity

If an applicant lacks capacity or is unable to complete the application form themselves, a legal representative may complete and submit the application on the applicant’s behalf.

This could be someone who has Power of Attorney (or an overseas equivalent), someone nominated in a letter written by the applicant, or a legal professional such as a solicitor (please note that any legal fees incurred will be the sole responsibility of the individual who engaged the legal services).

The legal representative will be required to supply their personal details and evidence of their status as a legal representative (such as a Power of Attorney document, a letter from the applicant instructing the legal representative to act on their behalf, etc). Financial Recognition Payments will only be paid to the applicant and not the legal representative.

An applicant represented by a legal representative can apply online. However, if a legal representative is representing more than one applicant, they must use a hard copy application, as the online system cannot process multiple applications under the same representative. See the section below about how to obtain a hard copy application form from the Financial Recognition Scheme.

Changing your legal representative

If an applicant has to change their legal representative, the new legal representative should contact the Financial Recognition Scheme by email or letter explaining the reasons for the change. Guidance will be given about what actions need to be taken to make the change.

How to apply for a Financial Recognition Payment

Online applications

The Financial Recognition Scheme has a dedicated online application platform which can be accessed through the Defence Gateway Platform. The Financial Recognition Scheme app has been designed so that applicants can check the progress of their application at any time, and it will be used to communicate with applicants directly. We recommend using the online application process.

Applicants can use any browser to access the Defence Gateway and their application on the Financial Recognition Scheme app.

There is a two-step process to accessing the online Financial Recognition Scheme app:

Step 1: Online Defence Gateway registration

Apply for a Financial Recognition Payment at Defence Gateway

Note for existing Defence Gateway account holders: If you already have a Defence Gateway account, you can access the LGBT Financial Recognition Scheme app from your existing account. If you attempt to register again, your application will be declined, as a check is performed to confirm existing accounts.

The link will take you to a Defence Gateway registration form where you will provide information such as your name when in service, your name now (if different), your service number and your email. You will also be asked to confirm that you consent to your personnel records being accessed and verify that you served during the period of the Ban.

• This information will be reviewed to confirm your  identity and service during the period of the Ban.
• If there are any issues with the information provided on the Defence Gateway  registration form, a team member from the Financial Recognition Scheme will contact you or your legal representative by email.
• The Financial Recognition Scheme will aim to set up your Defence Gateway account as quickly as possible. However, processing times may vary depending on the volume of applications or if service records need to be retrieved from the MOD archive.

The Financial Recognition Scheme will send your Defence Gateway sign-in details to you by email. You will need to verify your email address via a link provided in the email.

When you first sign in, you’ll complete a security question check using the answer you provided during registration. Once signed in to the Defence Gateway, you will be able to access the Financial Recognition Scheme app and start the application form. Please keep your Defence Gateway account details safe and do not allow anyone else access to your account. Remember your security question and answer as this will be needed for things like password resets.

Step 2: Access to the LGBT Financial Recognition Scheme app on the Defence Gateway and completion of the application form

When completing your application, the Financial Recognition Scheme app provides guidance which you can access if you are unsure what information is required. Information symbols have been included which you can click on to access information, advice and guidance.

Question mark in a circle - more information about the section you are in.

Pencil on a square - edit symbol allowing you to edit a section or field.

A generic application form, along with guidance on how to complete the form, can be found in the Scheme Rules, Annex A: Veterans of the LGBT Ban: Financial Recognition Scheme.

When applying online, your application will automatically save every time you click the Next button. This process may take a few seconds, especially if you have uploaded documents. Additionally, the application will automatically save itself at the end of each section.

A progress tracker will be available at the start of the application process, allowing you to check the progress of your application. Please take your time to complete your application form. After submitting your application, you have a  2 week window in which you can return to your application and make any changes.

How to reset a Defence Gateway password

If you have forgotten your Defence Gateway password, need to reset your password or are having trouble accessing your account, please follow the guidance provided on the Defence Gateway sign-in page using one of the three links provided: ‘I have forgotten my security answer’; ‘I cannot access my recovery email account’; ‘I am locked out of my account’.

You can also access The Defence Gateway Helpdesk.

In the search bar at the top, type in for example ‘forgotten password’ or ‘password reset’. Press search. Select from the search results.

Hard copy applications

The Financial Recognition Scheme also offers the option of submitting a hard copy application by post for those who are not comfortable with using the online application process. Please call the Veterans UK Helpline, who will be able to provide you with a copy of the application form, together with a return envelope.

Veterans UK Helpline:

Email: veterans-uk@mod.gov.uk

Freephone (UK only): 0808 1914 2 18, 8am to 4pm, Monday to Friday

Telephone (overseas): +44 1253 866 043, 8am to 4pm, Monday to Friday

• Remember to take a copy of the application form and only send copies of supporting evidence.
• Please do not send the LGBT Financial Recognition Scheme original documents.
• Post the application form and copies of your supporting evidence in the return envelope to the Financial Recognition Scheme – Freepost LGBT FR SCHEME.
• Please remember to put your return address and/or postcode on the back of the envelope.
• Hard copy applicants have the choice of how they wish to be contacted: either by email or letter.

What to do if you do not know your National Insurance number

Find your National Insurance number

Welfare support – Counselling, support or legal assistance

Completing the application may be difficult for some and could trigger painful memories.

The MOD and the LGBT Financial Recognition Scheme do not wish to cause you further distress and so we suggest that you proceed slowly and that you read and complete this form in a safe place. If you feel anxious or unwell when you think about your experience, we encourage you to seek support from someone, such as a family member, counsellor, a health care professional, friend, or someone else from your community.

You are free to obtain legal assistance/advice with respect to submitting this application form if you wish, but you are not required to do so. Legal fees are your responsibility and you cannot be refunded for these. Remember only your legal representative can submit an application on your behalf.

We encourage all applicants to have an up-to-date will in place.

Help completing your application

A number of charities have teamed up with the Financial Recognition Scheme to provide support, if needed, to veterans making an application. The details of these charities will be distributed shortly.

Veterans Welfare Service

You can seek support from the Veterans Welfare Service who provide information, guidance and support to veterans and their families, as well as supporting veterans through a network of case managers across the UK and Republic of Ireland.

Veterans Welfare Service works with organisations in the Single Services, Defence, wider UK government, the devolved administrations, local authorities and charities to make sure clients receive the help they need from the right provider.

Veterans Welfare Service

Alternatively, please contact the Veterans UK Helpline who can request welfare support for you.

Email: veterans-uk@mod.gov.uk

Freephone (UK only): 0808 1914 2 18

Phone (overseas): 0044 1253 866 043

Appeal process

The Financial Recognition Scheme has an appeal process. All eligible appeal requests will be put before an Appeal Board. Only one appeal request can be raised against an LGBT Dismissed or Discharged Payment decision and only one against an LGBT Impact Payment determination. Appeal requests have to meet at least one of the appeal criteria outlined in Part 5 of the Scheme Rules. Appeals that do not meet these criteria cannot be accepted.

Applicants have up to 2 calendar months from the date of their decision letter (LGBT Dismissed or Discharged Payment) or their determination letter (LGBT Impact Payment) to raise an appeal request. Appeals submitted after this deadline require a valid reason for the delay. The Appeal Board will issue a judgement within 3 calendar months.

Fraud

The application form asks applicants to confirm that the information they have provided is true to the best of their knowledge and belief. If you knowingly give information that is materially incorrect, incomplete or dishonest, you may be liable to have civil or criminal legal action taken against you.

The Financial Recognition Scheme operates a number of preventative and detection measures to guard against the risk of fraud, and any attempt to intentionally defraud the Financial Recognition Scheme will be taken seriously.

His Majesty’s Revenue and Customs (HMRC) exemptions

HMRC have agreed that payments from the LGBT Financial Recognition Scheme are to be treated as exempt from income tax. More details about the legislation which defines this exemption can be found in the Scheme Rules Part 1.

You are advised to keep safe a copy of your LGBT Dismissed or Discharged Payment decision letter and/or a copy of your LGBT Impact Payment determination outcome letter. HMRC may require you to provide the letter(s) as evidence to prove that the money you have received derives from an LGBT Financial Recognition Scheme payment which is exempt from income tax.

Department for Work and Pensions (DWP) – Benefits and housing benefits disregard

The DWP has agreed to the introduction of an indefinite capital disregard of the LGBT Financial Recognition Scheme payment for means-tested benefits. It is anticipated that the disregard will be introduced in spring 2025. More details about the legislation which defines the DWP benefits exemptions can be found in the Scheme Rules Part 1.

You are advised to keep safe a copy of your LGBT Dismissed or Discharged Payment decision letter and/or a copy of your LGBT Impact Payment determination outcome letter. DWP may require the letter(s) as evidence to prove that the money you have received derives from an LGBT Financial Recognition Scheme payment and therefore should be disregarded for the purposes of certain means-tested benefits.

Payments into bank accounts

The Financial Recognition Scheme will ask for your bank account details as part of the application process.

If you are eligible for a Financial Recognition Payment, the Financial Recognition Scheme will contact you with the details of your Financial Recognition Payment and you will be asked to confirm the bank account details.

This is to ensure that the Financial Recognition Payment is being paid in to the right bank account. The Financial Recognition Scheme can make payments to all UK bank and building society accounts, European bank accounts and overseas bank accounts.

Closure of Defence Gateway accounts

Defence Gateway accounts which were created solely for the purpose of applying to the Financial Recognition Scheme will be deactivated in June 2027, when the Financial Recognition Scheme is closed. Some Defence Gateway accounts may be closed earlier if the application has been processed in full and/or is closed by the Financial Recognition Scheme as the applicant is found not to be eligible to apply.

You will still be able to contact the Financial Recognition Scheme if your Defence Gateway account has been closed, by email or letter.

LGBT non-financial restorative measures

LGBT veterans: support and next steps

Armed Forces Compensation Scheme and the War Pension Scheme

The LGBT Financial Recognition Scheme is not a compensation scheme.

However, applicants should note that the MOD does have compensation schemes for injury or illness caused by or made worse by their service in HM Armed Forces:

Armed Forces Compensation Scheme

The Armed Forces Compensation Scheme compensates for any injury, illness or death which was caused or made worse by service on or after 6 April 2005.

Find out more

War Pension Scheme

The War Pension Scheme compensates for any injury, illness or death which was caused or aggravated by service before 6 April 2005.

Find out more

These schemes are not related to or connected with the LGBT Financial Recognition Scheme.