MoD pays £4m over dismissal of gays

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Payments have been made to 65 individuals, with an average payout of £61,500. The cases date back to the period before 1999, when four servicemen won their cases at the European Court of Human Rights

The court's ruling that the ban was a violation of the right to respect for a private life under the European Convention on Human Rights resulted in the lifting of the ban on gays in the military the following year.

Settlements in many cases were agreed years ago, but pay-outs were delayed until the completion of the European court case. Some £3.7 million was paid out to 57 people in 2007/08, following payments of £300,000 to eight people over the two previous years.

Details emerged in the MoD's Claims Annual Report, published earlier this week, which said that no further claims or pay-outs were expected.

Peter Tatchell, of homosexual rights group OutRage!, said: "These payouts are small compensation to people who were often subjected to degrading interrogation and detention, and who lost their job and service accommodation.

"Although this monetary compensation package is welcome and long overdue, what's really important is the official recognition that a grave injustice was done to these people and to hundreds of other dismissed lesbian and gay soldiers, sailors and air crews."

The MoD spokesman said: "Sexual orientation is a private life matter. It is the right of each and every member of the Armed Forces to work in an environment which is free from harassment, intimidation and bullying and have equal opportunities for employment, training and advancement based solely on their merits and abilities.

"Over the past few years the MoD has made strenuous efforts to reach amicable settlements in relation to those legal claims which remained outstanding and we are pleased that compensation has now been awarded in all these cases."