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‘Fair’ payments for Equitable Life policyholders

‘Fair’ payments for Equitable Life policyholders

Category: Money

Updated: 25/05/2010
First Published: 25/05/2010

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 new coalition government has pledged to make fair and transparent compensation payments to around one million policyholders hit by the near collapse of Equitable Life.

The plans outlined in the Queen's Speech to Parliament confirmed the government wants to establish an independently designed payment scheme for the insurer's policyholders that is 'swift, simple, transparent and fair'.

A final report will be published in mid July along with a detailed update outlining the steps intended to be taken towards implementing the payment scheme.

Although its design is likely to be determined by an independent commission, it was confirmed that there will be no means testing, and that the dependents of deceased policyholders will be included.

"For almost a decade, Equitable Life policyholders have fought for a just resolution in relation to losses suffered as a result of regulatory failure", Mark Hoban, Financial Secretary to the Treasury.

"I am very aware of the acute concern among policyholders who have suffered loss, and the desire to achieve redress quickly."

Amongst the other bills unveiled, the Financial Reform Bill will see responsibility for banking regulation shift away from the Financial Services Authority to the Bank of England.

The phasing out of the default retirement age and timetable for raising the state pension age will be legislated for under the Pensions and Savings Bill. The link between earnings and the state pension will also be restored from 2012.

However, the Queen said that the first priority of the government was to reduce the deficit and restore economic growth.


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