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Equitable Life: Compensation

Volume 488: debated on Friday 6 March 2009

To ask the Chancellor of the Exchequer what steps he is taking to ensure that the ex-gratia payment scheme for Equitable Life policyholders is in accordance with the recommendation of the parliamentary ombudsman that the scheme should be simple and not impose undue burdens on those making claims. (249652)

I refer the hon. Member to the statement made by the Chief Secretary to the Treasury on 15 January 2009, Official Report, column 377.

To ask the Chancellor of the Exchequer what his latest estimate is of the amount of compensation which will be paid to Equitable Life policyholders in (a) 2008-09, (b) 2009-10, (c) 2010-11 and (d) 2011-12; and if he will make a statement. (260180)

The Government do not have the necessary information at present to make an assessment of payments to Equitable Life policyholders under the ex-gratia payment scheme it has announced.

The Government have asked Sir John Chadwick to consider several issues in relation to the relative losses suffered by Equitable Life policyholders. This work will be used to help inform the creation of a fair payment scheme for policyholders who have suffered a disproportionate impact, taking account of the position of the public purse, as well as practical considerations.