Leeds-based adoption agency Catholic Care has lost its latest battle against equality laws. The charity had argued for the right to turn away gay couples on religious grounds.

Catholic Care won the right to have their case reconsidered by the Charity Commission last year, but the Charity Tribunal dismissed their appeal this week. The tribunal stated that the charity’s potential losses should be weighed against the “detriment to same-sex couples” and the “detriment to society”, adding that it was “impossible” to prove that the agency would lose money if it failed to discriminate against gay couples.

“There was evidence before the tribunal that some Catholics do offer financial support to adoption agencies which provide services to same-sex adopters but no evidence from the charity that it had considered how it might attract alternative financial supporters if it did not discriminate.”

The news was welcomed by LGB rights group Stonewall. “There should be no question of anyone engaged in delivering any kind of public or publicly funded service being allowed to pick and choose their service users on the basis of individual prejudice,” declared Stonewall deputy chief executive Laura Doughty.

“Catholic Care is very disappointed with this ruling,” said the Right Reverend Arthur Roche, Bishop of Leeds. “The trustees are considering their position and whether or not to appeal. It is unfortunate that those who will suffer as a consequence of this ruling will be the most vulnerable children for whom Catholic Care has provided an excellent service for many years.”

David Cameron called for a compromise on the issue of gay adoption whilst Leader of the Opposition in 2007, claiming religious adoption agencies did a “fantastic job in placing hard-to-place children”.