This research investigated the behavioural consequences of homophobic epithets. After exposure to either a category or a homophobic label, heterosexual participants allocated fictitious resources to two different prevention programmes: one mainly relevant to heterosexuals (sterility prevention), the other to homosexuals (AIDS-HIV prevention). Responses on allocation matrices served to identify strategies that favoured the ingroup over the outgroup. Results indicated stronger ingroup-favouritism in the homophobic than in the category label condition. This study shows that discriminatory group labels have tangible effects on people's monetary behaviours in intergroup contexts, increasing their tendency to favour the ingroup when distributing resources.