Until a 2000 reform, lesbians, gays, bisexuals and transgender people were barred from military service in Britain. Those who were found out were often harassed, abused and sacked, according to a government-commissioned report last year.

Seeking to right "historic wrongs", former armed forces members or employees sacked over their sexuality or gender identity will be eligible to receive pound50,000 each, the defence ministry said -- a larger amount than initially expected.

"The historic treatment of LGBT veterans was a moral stain on our nation. Our government is determined to right the wrongs of the past and recognise the hurt that too many endured," Defence Secretary John Healey said in a statement.

Besides losing their jobs and being subjected to public humiliation, the veterans involved were sometimes stripped of their pension benefits, living the rest of their lives in poverty.

"We fully welcome our LGBT veterans back into Defence, and acknowledge their vital contribution to keeping the nation safe," said Minister for Veterans Alistair Carns.

Additional compensation of pound1,000 to pound20,000 will be offered based on the "suffering" of particular individuals, whether harassment, brutal interrogations or imprisonment, officials said.

Victims will also be able to request the reinstatement of their military rank and medals.

Parliament is due to debate the measure on Thursday, but veterans can already begin filing their compensation requests online.

In July 2023, a report ordered by Britain's then-Conservative Party government revealed the "horrendous" treatment of LGBTQ veterans who had served between 1967 and 2000.

The day it was published, former prime minister Rishi Sunak apologised on behalf of the government. He then set in motion the process that led to Thursday's reparations announcement.