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By Lauren Moss, LGBT correspondent & Josh Parry, LGBT producer
BBC News
The government has dropped a key commitment to veterans who were sacked or forced out of the military for being gay, sources have told the BBC.
In July - following an independent report - the then Defence Secretary Ben Wallace promised a Westminster debate about how best to make reparations.
The BBC has learned the debate is now scrapped, meaning MPs will not get to scrutinise the government's response.
The government says it will publish its full response to the report "shortly".
Leading military charities have signed an open letter calling on Prime Minister Rishi Sunak to honour the promise to hold a debate and "bring an end to the shame and dishonour" veterans have suffered.
They have also asked for the £50m compensation limit that was recommended in the review to be lifted.
They estimate that cap will mean veterans may receive less than £20,000 in financial settlements. They say this will leave many, who lost their income and future pensions when they were expelled from the forces, unable to find stable housing and facing "impoverishment" in older age.
The letter has been written by campaign group Fighting With Pride and signed by organisations including The Royal British Legion, Help for Heroes, Women's Royal Army Corps Association and Age UK.
Homosexuality was decriminalised in the UK in 1967 but a ban continued in the armed forces.
Until 2000, those who were gay, or perceived to be gay, faced being dismissed or were otherwise forced to leave.
The LGBT Veterans Independent review, led by Britain's first openly gay judge Lord Etherton, heard about the experiences of 1,145 veterans who served between 1967 and 2000.
It found that there had been an "incomprehensible policy of homophobic bigotry" in the armed forces and found that veterans were subject to homophobia, bullying, blackmail, sexual assaults, "disgraceful" medical examinations, and conversion therapy.
Following the publication of Lord Etherton's report in July, the prime minister said the ban was an "appalling failure" of the British state.
Addressing MPs, he added: "Many endured the most horrific sexual abuse and violence, homophobic bullying and harassment all while bravely serving this country."
Ben Wallace, the then defence secretary, said that MPs would be given a chance to debate the report and the government's response, adding it was "important that both opposition and our colleagues can hold me or my successor to account."
Sources have said the debate in Westminster will be replaced with a statement by new Defence Secretary Grant Shapps in Parliament on Wednesday, 13 December.
The Scottish Parliament will hold a debate in Holyrood on Wednesday evening.
Craig Jones and Caroline Paige, co-directors of campaign group Fighting With Pride, who campaigned for the review, said: "Over 1,000 veterans returned to their darkest days as they gave evidence to the LGBT Veterans Independent Review.
"In denying LGBT veterans the promised Parliamentary debate the government is failing to match their courage - this is an unacceptable act of erasure.
"The £50m cap is a far cry from schemes proposed for those affected by tainted blood, Windrush and for Post Office workers affected by the Horizon scandal. The amounts for each veteran will be derisory and will deny these veterans the security of stable housing and the income needed to find enjoyment in their lives."
A government spokesperson said: "We have accepted in principle the vast majority of the Etherton report's recommendations."
"Many of the recommendations are complex and it is vital that the government carefully considers their delivery to ensure the best outcomes for those affected."
David Bonney is thought to be the last man in Britain ever to go to prison for being gay, serving four months in a military prison in Colchester in 1995 after being convicted of "homosexual conduct" while working for the RAF as a medic.
Although he was later freed on appeal, the conviction is still on his criminal record and is listed as a sexual offence. He also lost out on the ability to claim the pension built up during his years of service.
He told the BBC that submitting evidence to the enquiry had felt like "going back to your childhood bully to ask for help".
Reacting to the news, he added: "Yet again the bullies win, why should they not make up my loss of pension and wages?
"I can't see how the House of Commons would agree with the cap on financial compensation, which probably explains why Rishi Sunak doesn't want a debate. I expected this delay and it proves that once again, homophobes must have the ear of the prime minister."
A government spokesperson added: "Responding to the LGBT Veterans Independent Review and delivering its recommendations remains a high priority and further detail on the delivery of recommendations will be included in our full response, which will be published shortly."