The British Government paid compensation to servicemembers who were discharged under their ban on gays in the military (which was repealed in 2000). According to the British Government, the compensation was for violating the privacy of servicemembers who were the targets of undercover investigations and entrapment operations. Read the story here:
Quite a contrast from current US policy, which not only bans openly gay individuals from serving in the military, but also requires discharged gay servicemembers to repay the government for the tuition costs that the government paid on their behalf. See, e.g., Hensala v. Department of the Air Force, 343 F.3d 951 (9th Cir. 2003).