Universal Credit is paid to help people with their living costs but it can be affected by the amount of savings they have
Veterans stand to gain from a pivotal rule alteration as the LGBT Financial Recognition Scheme will not affect an individual’s eligibility for Universal Credit. The scheme, which was introduced in the latter part of last year, offers certain veterans up to £70,000 in compensation.
This move is designed to “acknowledge historic wrongs” and comes as a direct response to Lord Etherton’s Review concerning LGBT veterans. While the exact number of people that could claim this financial recognition hasn’t been announced, government estimates indicate it is under 4,000 personnel according to Sky News.
Typically, possession of over £16,000 in cash, savings, and investments would disqualify someone from receiving Universal Credit. However, with the inclusion of the LGBT Financial Recognition Scheme in the list of special compensation schemes, payments from it are exempt from being counted towards this threshold.
Other schemes that share this exemption include those for victims of the Grenfell Tower fire, the 2005 London bombings, and recipients of the Victoria Cross or George Cross. Despite the exemptions, it’s still mandatory for beneficiaries to report these compensations to the DWP.
Launched officially in December, the LGBT Financial Recognition Scheme initially grants £50,000 to LGBT veterans who faced dismissal or discharge on the grounds of their sexual orientation or gender identity. Additionally, veterans and Service Personnel can receive between £1,000 and £20,000, depending on the extent of the negative impact they experienced due to the ban on LGBT personnel from 1967 to 2000.
To qualify for the financial recognition payment, individuals must have served in HM Armed Forces between 27 July 1967 and 11 January 2000, during the prohibition on LGBT personnel serving in HM Armed Forces. They must also have been impacted by this ban.
Those who think they may be eligible for financial recognition can learn more about the scheme on Gov.uk. Applications can be made either through the LGBT Financial Recognition Scheme App or via an official LGBT Financial Recognition Scheme hard copy application form.
The application period commenced on December 13, 2024 and will conclude on December 12, 2026. In addition to being exempt from Universal Credit calculations, these payments are also free from income tax and other means-tested benefits.
Other non-financial initiatives to rectify these historical injustices are also under way. For instance, LGBT veterans who were dismissed or discharged due to their actual or perceived sexual orientation or gender identity can apply to have their rank reinstated and their discharge record amended.