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Equitable Life

Volume 502: debated on Wednesday 16 December 2009

I can today provide an update to the House on the progress of Sir John Chadwick’s work in advising the Government on the establishment of an exgratia payment scheme for Equitable Life policyholders.

Sir John published his first interim report on 18 August 2009. He has since received a range of representations on the questions he has raised, and is today publishing a second interim report, which sets out:

The scope of the work that will be required following his revised terms of reference, which were issued on 27 November.

The case for adopting a “flexible” approach to calculating policyholders’ relative loss. Sir John considers that this approach is fairer, easier to calculate, and quicker to deliver than other potential approaches.

The list of questions that he will need to address in his final advice.

Sir John would welcome further representations and comments from all parties on the issues raised in his latest report by 29 January 2010.

The Government are committed to establishing a fair payment scheme as quickly as possible. We expect Sir John to submit his final report in spring 2010, and will announce details of a payment scheme to follow, also in spring 2010.

I will update the House further in due course.