A former paratrooper who had a sex-change operation has won a £250,000 payout for hurt feelings after being ordered to wear a man’s army uniform.

Jan Hamilton, formerly Captain Ian Hamilton, was awarded the sum by the Ministry of Defence (MoD) in an out-of-court settlement after claiming that she was humiliated by the order.

The size of the payout will outrage veterans who have received far lower awards for being injured in the line of duty. Lance Bombardier Ben Parkinson, 23, who lost both legs and suffered brain damage after triggering a Taliban landmine was initially offered £152,000. Although described by doctors as the worst injured soldier ever to survive, the MoD only raised his payout to £285,000 after a campaign from soldiers’ families.

According to current MoD settlements soldiers receive £57,000 for the loss of a leg and £285,000 for the loss of both arms or legs.

Yesterday Hamilton said she was happy with the settlement. Of the payouts to other soldiers, she said: “I count my blessings I came home in one piece. My thoughts go out to anyone serving out there in a uniform.”

Hamilton served in Afghanistan and Iraq before deciding to undergo gender reassignment surgery. She claims she made repeated requests to discuss the move with her superiors and was summoned to attend a compulsory medical examination in April 2007 wearing her male uniform.

She refused to attend and announced she was taking legal action against the army, saying at the time: “I have been living as a woman since January, but as far as the army is concerned I am still a man. I have a male ID. It would have been humiliating and demeaning for me to turn up for my medical examination dressed in a man’s uniform.”

The MoD refused to discuss the settlement, saying: “Jan Hamilton has decided to bring her service with the armed forces to an end and is pursuing other career opportunities.”

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