Commons Sense

House of Commons · Ministers' Questions

Equitable Life: Compensation

Tuesday 20 October 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Government set up a payment scheme in 2010 to compensate eligible Equitable Life policyholders up to 1.5 billion.
  • Since 2016, the Government considers the issue closed with no additional funding beyond the 1.5 billion allocated.
  • The Government maintains a 100 million contingency fund to support annuitants who were receiving payments from 2010.

Topics (select to filter)

Questions & Answers

Q1 Joanna Cherry SNP
Context

Victims of the Equitable Life scandal are seeking full compensation for their losses.

Question

If the Government will take steps to ensure that victims of the Equitable Life scandal receive full compensation for their losses.

Answer from John Glen

In 2010, the Government set up a payment scheme to make payments of up to £1.5 billion to eligible policyholders. Since the scheme closed in 2016, the Government's position on this issue has been clear: there is no further funding in addition to that £1.5 billion and this issue is considered closed.

Answered
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Q2 Joanna Cherry SNP
Economy Business & Trade
Context

Self-employed people and small business owners feel let down by the Government's response to both the Equitable Life scandal and the COVID-19 pandemic.

Question

Many self-employed people and small business owners feel let down by the covid response, and the same type of people were let down 10 years ago today when victims of the Equitable Life scandal were told they would only get 22% of the money they had lost. The Treasury has ignored hard-working people like my constituents for a decade, so please will the Chancellor reconsider and commit to providing Equitable Life victims with the compensation they deserve?

Answer from John Glen

The Government continue to pay out to annuitants who were in payment from 2010. Indeed, we have a £100 million contingency to ensure that they are properly provided for. The Government were completely transparent about the calculation methodology and worked with the action group, the Equitable Members Action Group, to give explanations to policyholders. We met actuaries to ensure that it was as fair as it possibly could be, so the Government's position on this remains as I have stated.

Partly answered

Not addressed: The Chancellor did not commit to reconsidering or providing full compensation to Equitable Life victims.

How: We Have A £100 Million Contingency

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