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Backbench Business
21 January 2021
Lead MP
Bob Blackman
Debate Type
General Debate
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Other Contributors: 32
At a Glance
Bob Blackman raised concerns about backbench business in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Expresses grave concern over the Government's failure to fully compensate Equitable Life policyholders. Points out that victims received only partial compensation despite confirmed losses due to regulatory failures, and calls for a joint inquiry by Public Accounts Committee and Public Administration and Constitutional Affairs Committee into payment accuracy.
Bob Blackman
Con
Harrow East
Describes the unique nature of Equitable Life's Ponzi scheme and its impact on over a million policyholders. Outlines the promise to provide full compensation but highlights only partial compensation was provided, with some victims excluded from the scheme. Calls for full transparency in Treasury calculations.
Rosie Winterton
Lab
Lincoln
Introduces a four-minute time limit for contributions due to high demand for speaking slots and the need to accommodate Members participating virtually and physically.
Emma Lewell-Buck
Lab
South Shields
The debate concerns the scandal affecting victims of Equitable Life pension schemes, who have lost significant sums in their pensions due to maladministration by Government Departments and regulators between 1992 and 2000. Emma highlights the case of Mr John Petty, an elderly pharmacist who was forced back to work after losing a substantial portion of his pension. She emphasises that nearly 900,000 people are still awaiting full compensation, despite the Government accepting the parliamentary ombudsman’s findings in 2010 but failing to provide adequate redress. Emma argues for transparency regarding how the Treasury calculated its payments and calls for a joint inquiry by relevant committees to examine the accuracy of these payments.
Edward Leigh
Con
Gainsborough
Edward acknowledges that Equitable Life engaged in dubious practices, leading to the company being described as too big to fail. He notes several reports highlighting regulatory failures and corporate mismanagement during this period. Edward criticises delays and inaccuracies in compensation payments made by the Treasury and expresses concern over the lack of transparency regarding how these amounts were calculated. He calls for a full inquiry by the Public Accounts Committee (PAC) into the matter to ensure justice is served, particularly given the elderly and vulnerable nature of many victims.
Neale discusses the ongoing campaign by campaigners seeking fair compensation for those affected by the collapse of Equitable Life. He highlights instances where constituents have had to continue working well into retirement or sell their homes due to pension shortfalls. Neale criticises the Government's compensation offer as inadequate, pointing out significant errors in Treasury calculations and urging an increase from £1.5 billion to at least £4.1 billion to cover full losses identified by victims' groups. He questions whether delays are a ploy to avoid paying those who might otherwise receive full compensation before they pass away.
Heather Wheeler
Con
South Derbyshire
We are debating the Equitable Life scandal again, affecting over 895,000 people who have suffered due to maladministration. The compensation programme has been delayed and is insufficient, leaving victims in financial distress. I urge the Minister to provide more support for these constituents.
Jessica Morden
Lab
Newport East
The scandal affects almost 1 million pension savers who have received only 22% of their losses, with many victims being low-income individuals. The Treasury's refusal to disclose compensation calculation details undermines transparency and fairness. Victims are still bearing the costs of this injustice daily.
Alyn Smith
SNP
Dunfermline and West Fife
There is a historic injustice with daily consequences for thousands across UK, including in Scotland. The scandal involves failures by management, shareholders, and regulators, leading to an unjust compensation settlement of 22.4%. It undermines trust in the pensions sector.
Julian Lewis
Con
New Forest East
Describes the plight of an 84-year-old widow who lost her pension due to Equitable Life miscalculations. Emphasises that the Treasury should not shelter behind arguments and excuses for these mistakes, and calls for transparency in compensation methodologies.
Taiwo Owatemi
Lab
Coventry North West
Pays tribute to Bob Blackman and highlights the injustice faced by Equitable Life policyholders who have received partial or no compensation. Stresses the need for full consultation with affected parties, transparency in payment calculations, and justice for those affected.
Acknowledges the widespread impact of the scandal across the UK and reiterates the demand for fair treatment and full compensation. Highlights individual cases to illustrate the personal toll on constituents and families.
Paul Howell
Con
Sedgefield
Supports the motion by his hon. Friend and commends Equitable Members Action Group for their efforts. Highlights the case of Harry Cruddace, a policyholder forced to work until 71 due to regulatory maladministration. Emphasises that the victims are not just numbers but include key workers like police officers, nurses, and small business owners. Calls on the Government to extend financial support to fulfill the 2010 commitment to fair compensation for Equitable Life victims, ensuring security in retirement. Advocates for urgent inquiries and prompt funding distribution.
Christine Jardine
Lib Dem
Edinburgh West
Remarks on the hardship faced by Equitable Life policyholders over 20 years due to maladministration, stressing that these individuals deserve justice. Uses personal experience to illustrate the importance of retirement savings for financial stability and care provision. Raises concerns about changes in state pension age affecting women approaching retirement. Criticises the Treasury's lack of transparency on compensation payments and urges action beyond another inquiry.
Matt Vickers
Con
Stockton West
Commemorates the long-standing campaign for justice by his hon. Friend, Bob Blackman. Describes the impact of the scandal in human terms, focusing on Tom Coulson's story—a working-class man who saved diligently but lost £264,000 due to Equitable Life’s failure. Emphasises that these losses are not just financial but also represent years of work and dreams shattered. Urges the Government to settle its obligations and provide justice for victims.
Kim Johnson
Lab
Liverpool Riverside
The Government’s maladministration played a role, so it should ensure victims are fully compensated. Over 100,000 policyholders have not been traced; many in their 80s and 90s. The proposal for a joint inquiry into the accuracy of payments must be supported by the Government.
Fleur Anderson
Lab
Putney
The scandal has deeply affected hundreds of thousands, including hard-working retired nurses, teachers, civil servants and factory workers. Many have lost significant amounts in their pension pots and are elderly or will die without adequate compensation. The parliamentary ombudsman ruled that losses were due to a decade of regulatory maladministration by the Government Actuary’s Department. All victims should be repaid, and there is no excuse for not paying.
The accuracy and reliability of the Treasury’s methodology used to calculate compensation payments need addressing. A joint inquiry into payment accuracy by relevant Committees is called for. The human side of this technical matter must be considered, as it involves people who worked hard and prepared for retirement only to lose their savings.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Emphasised the need for transparency from the Treasury regarding compensation paid out to Equitable Life policyholders. He highlighted that the case will not go away until justice is given and full compensation is met, referencing a similar situation involving Alistair Greig of Midas Financial Solutions.
Caroline Nokes
Con
Romsey and Southampton North
Congratulated Bob Blackman on securing the debate and highlighted the dwindling number of affected individuals in her constituency. She stressed the need for transparency on Treasury calculations regarding compensation entitlements, calling for a joint inquiry to provide answers to constituents like Reg.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Called for an inquiry into wildly inaccurate payments received by Equitable Life pensioners. He highlighted the Government's failure in regulating Equitable Life properly, leading to people losing their retirement plans. Emphasised the moral and practical need to provide full compensation as called for by the independent ombudsman.
Thanked Bob Blackman for securing the debate and highlighted regulatory failure in Equitable Life scandal, affecting 500 of his constituents who have not received any compensation. Stressed that most people got around 22% of their pensions, which is insufficient for retirement. Also mentioned a similar situation involving AEA Technology pensioners.
Wendy Chamberlain
Lib Dem
North East Fife
Congratulates the hon. Member for Harrow East on securing this important debate, highlighting the delay in addressing the issue which affects many retired policyholders who have passed away without receiving compensation. Emphasises that time is running out and that the coronavirus pandemic has exacerbated financial strain on those affected. Calls for full compensation to be provided now.
Jim Shannon
DUP
Strangford
Reiterates the need for fair and transparent compensation, noting that 1 million pension savers have received only 22% of their losses. Criticises the Treasury's refusal to disclose details about calculations made. Suggests reassessing the process by which payments are calculated and calls on the Government to allocate funds from the underspend to help those who took out with-profits annuity contracts before September 1992.
Expresses concern for constituents who have lost significant amounts of money due to the Equitable Life scandal and received only a small portion back. Asks if there could be reconsideration of reopening the challenge mechanism in light of financial hardships caused by the pandemic.
Acknowledges the heart-breaking stories of constituents affected, including Terry who retired at 60 and has had his savings ruined due to Equitable Life’s collapse. Highlights that while the Government accepted victims’ losses were around £4.3 billion in 2010, only £1.3 billion was set aside which has not gone far enough for those affected. Emphasises the need for justice.
Robbie Moore
Con
Keighley and Ilkley
I pay tribute to my hon. Friend the Member for Harrow East (Bob Blackman) for securing this vital debate. Ever since my election to this place just over a year ago, I have been contacted by dozens of constituents from across Keighley and Ilkley asking for my support on this issue, and they have it. The Equitable Life scandal has gone on for far too long. Fundamentally, this comes down to one simple principle: fairness. When we save for retirement, we expect the money that we invested to be there for us, but the customers of Equitable Life, even after compensation, have been left with just a fraction of what they were owed. The final report on the Equitable Life payment scheme in 2016 set out that compensation payments to policyholders equated to only 22.4% of their relative loss.
Stephen Flynn
SNP
Aberdeen South
This is an incredibly emotive and serious topic, and I wish to start in the only way possible, which is to thank EMAG for all the fantastic work it does, and also to commend the hon. Member for Harrow East (Bob Blackman) for once again bringing this most important of issues to the Chamber, of course with the assistance of the Backbench Business Committee. Almost immediately on my election to this place in 2019, I, like many others, received correspondence from constituents who had been impacted by this appalling scandal. To be absolutely clear, I could not be more emphatic in expressing that my colleagues and I on the SNP Benches believe that this UK Government have a moral obligation to provide full restitution to those people who were victims of this appalling scam.
James Murray
Lab Co-op
Ealing North
It has been over two decades since the scandal at Equitable Life and despite a payment scheme announced by the Chancellor to compensate policyholders, thousands of them still feel they have not received fair treatment. The debate highlighted personal stories from MPs representing affected constituents, emphasising the long-lasting impact on individuals and their dreams. Murray pointed out discrepancies in how payments were calculated and called for transparency in the methodology used by the Treasury. He also referenced a Public Accounts Committee report which concluded that policyholders struggled to understand how their payments were calculated and thus could not verify if they were correct.
Eleanor Laing
Con
Apologised for technical issues during Murray's speech, expressing regret over the timer being used incorrectly and distracting him. She did not provide further details or contributions to the debate on Equitable Life.
John Glen
Con
Salisbury
Acknowledged the long-standing work of Bob Blackman on this issue and declared an interest due to his father being a former investor in Equitable Life. Stressed that no new claims have been accepted by the payment scheme for five years, indicating that the issue is now closed and no further funds will be provided. He defended the Government's approach, stating that significant resources were made available to ensure transparency in the calculation methodology published in 2011. Glen also addressed concerns about accuracy of payments, suggesting that any corrections were due to verification by policyholders themselves rather than errors from the Treasury.
Bob Blackman
Con
Harrow East
Mr. Blackman highlights the lack of transparency in calculating and distributing compensation under the reduced scheme and points out that pre-1992 trapped annuitants were not singled out for help until 2010 legislation was introduced, despite being among the most vulnerable victims.
Eleanor Laing
Con
Ms. Laing thanks Mr. Blackman for his work and moves a motion expressing grave concern over the Government's inaction towards full compensation for Equitable Life policyholders, noting inaccuracies in payments and demanding an inquiry into the accuracy of these payments.
Government Response
Government Response
Government has taken significant action and provided substantial funding to resolve the issue. The payment scheme was transparent, with full publication of calculation methodology and actuarial fees incurred in response to queries by representatives of Equitable Members Action Group. All payments have been confirmed accurate through checks on input data, verification opportunities for policyholders, and subsequent corrections if errors were found. Glen reiterated that no further funds will be provided as the issue remains closed.
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