Pilgrim Homes has won its legal battle with Brighton and Hove Council following accusations of “institutionalised homophobia”.

The council withdrew £13,000 of funding when the charity's Brighton care home refused the council’s request to ask the elderly Christian residents about their sexual orientation every three months. The home also refused demands from the council that it use images of homosexuals in its promotional literature and show staff a Stonewall presentation on gay rights.

Pilgrim Homes has served elderly Christians for more than 200 years and residents at its Brighton home include former missionaries and a retired church minister.

Phil Wainwright, director of human resources at Pilgrim Homes, said he was told by the council that the home must ask residents if they were lesbian, gay, bisexual, heterosexual or ‘unsure’, even if they objected.

But managers at the care home told the council that meeting its demands would “unduly distress” the residents and go against their Christian ethos. They also informed the council that residents over the age of 80 in particular would regard probing from the council on sexual matters as “hostile and intrusive”.

“There was a strong feeling among people in the home that the questions were inappropriate and intrusive,” said Mr Wainwright. “They felt they had come to Pilgrim Homes because of its Christian ethos and were upset they were not protected from such intrusions.”

The council responded by accusing the home of “institutionalised homophobia” and withdrew the funding, which was being used to pay for warden services in sheltered housing.

The Christian Institute took legal action against the council on behalf of Pilgrim Homes, stating that the council’s actions amounted to religious persecution. Brighton and Hove Council has now been ordered to restore the £13,000 of funding to Pilgrim Homes. The council will send a letter to Pilgrim Homes, withdrawing the accusation of “institutional homophobia”.

A spokesman for Pilgrim Homes, said, “We are willing to ask potential residents about their sexual orientation when they apply for a place at our home, on the understanding that they have the right to refuse, and that we will not be required to act in a way which goes against our doctrinal beliefs.”

Des Turner, MP for Brighton Kemptown, welcomed the result, “It does seem to be going quite over the top to demand information on sexual orientation from residents of a care home. I think some gentle way around that could have been found.”