By james art Labor MPs said the £50 million that has been allocated under a government scheme means LGBT veterans who have been forced out of work could receive around £12,500.
The so-called “gay ban” in the armed forces was lifted in 2000.
Previously, LGBT servicemen faced lengthy investigations before being dismissed, stripped of their medals and ranks.
A review by Lord Etherton in 2023 examined the experiences of LGBT veterans, which led to the establishment of the compensation scheme.
Burnley Labor MP Oliver Ryan, who called the debate on the adjournment, told the House of Commons: “Although the previous government offered a formal apology and took meaningful, meaningful steps to implement many of the reviews’ recommendations, the £50m allocated fund compensation scheme falls short, inadequately compensating approximately 4,000 veterans from the LGBT community and those affected by discriminatory practices.
“This amount is insufficient to respond to the depth of damage caused or the number of people whose lives have been destroyed in many cases.
“We must advocate for a more substantial commitment to financial reparation, one that reflects the true scale of the injustice suffered by these individuals and seeks to make amends in a meaningful way.”
Hundreds of armed forces personnel were fired every year in the 1980s, LGBT campaigner Peter Tatchell said earlier.
Affected veterans can apply for remedial measures on the government’s website.
The application window will open at the end of the year, Veterans Affairs Minister Al Carnes said, and will remain open for two years. Before entering the House of Commons, Mr Carnes served in the Royal Marines in Afghanistan and was awarded the Military Cross.
Chris Ward, Labor for Brighton Kemptown and Peaceheaven, mentioned Steve, a constituent who was discharged from the RAF in 1985 for having an affair with a male officer.
He said: “He made the mistake of telling the truth and was jailed for six months. He lost his rank, lost all his financial benefits, lost his family, and lost the 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 are the words he told me: ‘I felt washed with shame, my career was ruined, I had a criminal record, no pension and I had to live hand to mouth until the end of his life, surviving on benefits.
“As we heard today, it’s not even a deviation.”
He added: “Whilst I recognize the financial situation this Government is operating in, can capping payments of an average of £12,500 per person really be appropriate for the level of injustice suffered by people like Steve and so many other LGBT veterans.”
Mr Ward’s Labor colleague Tim Rocca (Macclesfield) said: “I am concerned, as are others, that the compensation scheme for 4,000 veterans who lost their careers because of institutional bigotry by the British state has been capped.
“How can it be right that £12,500 is considered sufficient for your own priest to start an investigation and subsequent questioning by the Special Investigations Unit?
“In exchange for their willingness to serve, the British state treated many thousands of people with contempt, exposing them to state sanctions, institutionalized homophobia, leaving them isolated from their friends and families.
“I’m glad we’re building a new consensus, but let’s take this consensus one step further and make sure these 4,000 brave, dedicated service men and women get the compensation and benefits they deserve.”
Mr Carnes said he spoke at the LGBTQ+ Defense Awards earlier this year and told guests: “Anyone can dodge bullets, bombs or artillery fire, but fight against the tide when it all comes crashing down upon thee, and to continue the fight in the battle, for justice is praiseworthy.
He called the treatment of LGBT staff from 1967 to 2000 “completely unacceptable”.
“The ministry was on the wrong side of history,” he added.
Mr Carnes added: ‘Of course I was aware of the speculation and heard some figures in relation to this fund. I believe colleagues will understand that while we continue our work to finalize its terms, it is too early for me to comment on exact figures.