LGBT veterans who were dismissed from the armed forces for being gay will be eligible to receive up to £70,000 in compensation, the government will announce on Thursday.
The Ministry of Defence said the move followed extensive engagement with LGBT veterans and campaigners.
Ministers will also announce that veterans can apply to have their rank restored and discharge reason amended.
The total amount available to affected veterans will be increased from a proposed £50m to £75m.
Applications will open on Friday for LGBT veterans who were dismissed or discharged because of their sexual orientation or gender identity to receive £50,000.
Additional payments of up to £20,000 will also be available for those negatively impacted by the ban on LGBT personnel between 1967 and 2000.
This is aimed at those who suffered harassment, invasive investigations and those who were sent to prison.
The exact amount of additional compensation will be decided by an independent panel.
All payments will be exempt from income tax and will not affect means-tested benefits.
Homosexuality started being decriminalised in the UK in 1967 but a ban continued in the armed forces until 2000.
Those who were or were perceived to be gay were often subjected to lengthy investigations before being discharged from the military.
‘Constant struggle’
Stephen Close, who joined the army when he was 18, said he will be hoping for some financial compensation.
Mr Close was convicted of the sexual offence of gross indecency after kissing another man while stationed in Berlin in the 1980s.
He lived as a convicted sex offender for 30 years before being pardoned in 2013.
“Because of my criminal record, I’ve had to go from job to job. I’ve built no pension whatsoever. I’ve no savings. I’ve never been on holiday. I don’t think I’ve ever had anything new. It’s just been a constant struggle all my life”, Mr Close told the .
“Mentally, it’s been absolutely terrible. I’ve suffered for many years with depression, anxiety, I have panic attacks”, Mr Close added.
Despite that, he said he is still “proud” to have served his country.
A National Audit Office report found that up to 4,000 veterans are expected to be eligible for compensation.
The LGBT Veterans Independent Review, led by Britain’s first openly gay judge, Lord Etherton, revealed decades of bullying, assaults and expulsions of LGBT servicemen and women – often leaving them without income or pensions.
On the report’s release, the then Prime Minister Rishi Sunak apologised in Parliament, calling the ban “an appalling failure” of the British state.
The government says the £75m available is significantly above the level recommended in the Etherton Review.
Veterans will be able to join the scheme from Friday 13 December.