Equitable Life payout to begin in June - Money - News - Moneyfacts


Equitable Life payout to begin in June

Equitable Life payout to begin in June

Category: Money

Updated: 17/05/2011
First Published: 17/05/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has announced that payouts to Equitable Life policyholders will begin next month.

The statement was made yesterday and matches the Financial Secretary's target to start making payments by the middle of 2011.

Policyholders have been told that they do not have to do anything and will be contacted if they are eligible for a payout, with priority to be given to elderly policyholders and the estates of those who have passed away.

"I am setting out the design of the Equitable Life Payment Scheme for Parliament, policyholders and all other interested parties to see," Mark Hoban, Financial Secretary, said.

"This is a complex issue, but the Scheme has been designed to reflect the principles of fairness, transparency and simplicity.

"When payments start in the middle of this year it will be a huge milestone for the policyholders who have waited so many years for the resolution of this matter."

A total of £1.5 billion has been set aside to payout, with £1 billion ring fenced to be paid out in the next three years.

As had previously been indicated, with-profits policyholders will be paid out in full for any losses they incurred, with payments not affected by tax.

Policyholders that suffered losses of £10 or less have been told they will not be compensated.

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

A quarter of Brits have fallen victim to a scam

Think you know how to spot a scam? It may not be as easy as you’d think, with 25% of Brits admitting that they’ve been the victim of one in the past, and a further 73% are concerned about being scammed in the future.

Brits’ bad spending habits revealed

Many of us like to think that we’re good with money, yet there are often things that get in the way of regular saving and financial security. Solution Loans has taken a look, and has identified the bad spending habits that leave us in the red.

Growing fears that inflation could impact wallets

We’ve all heard reports that the cost of food and petrol could increase in the next few months, together with the threat of rising inflation, and it seems that these concerns are beginning to take their toll on the nation’s consumers.