Statement by HM Treasury on Equitable Life Payment Scheme

The Treasury issued the following written statement on the Equitable Life Payment Scheme on Wednesday 22 January.

Begins:

As of 31 December 2013 the Equitable Life Payment Scheme has made payments totalling £816 million to 717,600 policyholders. The scheme has also published a further progress report, which can be found at http://equitablelifepaymentscheme.independent.gov.uk.

Over the coming months the scheme will continue to make payments and any policyholders who have not been contacted should call the scheme directly on 0300 0200 150 to check their eligibility for a payment. To support this, the scheme has implemented a new system in their call centre which allows most policyholders to verify their identity on the telephone and thus receive any payment due more quickly, usually within two weeks.

The scheme remains committed to locating as many of the remaining policyholders as possible before it closes in 2015. In addition to the recent advertising campaign which resulted in around 20,000 people calling the scheme, the scheme has also identified enhanced methods of policyholder tracing. It is anticipated that these new approaches will result in thousands more policyholders who have not already identified themselves to the scheme being paid.

Ends

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2 Comments

  1. alan jutson
    Posted January 28, 2014 at 9:53 am | Permalink

    I have already been paid out a derisory amount of compensation from the above Scheme, so I wrote to them asking how they had calculated the compensation given.

    The answer somewhat surprised me, in so far as the compensation amount does not include the invested fund value at all, but simply the annual payments made into the scheme during the ten year period of maladministration.

    The fact that I also lost 70% of my pension entitlement through loss of my guaranteed annuity, it seems does not count for compensation either.

    I have asked for the basis of the actual formula used to be outlined to me for such calculations, but have been refused, letter recieved this weekend.

    John, I thought after more than 10 years of waiting, this was supposed to be a transparent Government organised compensation offer.

    How can that be, if the major elements of any pension fund, like Fund value and benefits, are excluded.

    More than happy to forward correspondance should you want further detail.

    Reply I am always willing to take issues up over this compensation. The Conservatives in opposition were very critical of Labour delaying and avoiding paying any compensation, but also said they would not be offering full compensation. The compensation is to reflect the regulatory errors in this case, not to reimburse fully for the investment errors made by the Insruance company.

    • alan jutson
      Posted January 28, 2014 at 10:56 am | Permalink

      John

      Thank you for your response.

      Yes I am fully aware it was Labour who delayed, and delayed, and delayed for 10 years, before this government actually did something.

      I am also aware that we would not be fully compensated, as only 22% of the loss was agreed under the Coalition scheme, but I have to say I did think that that 22% of loss would mean all elements of the loss, not just the minor parts of it.

      Reply I repeat I am always willing to take things up again with Ministers

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  • About John Redwood

    John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College, and has a DPhil from All Souls, Oxford. A businessman by background, he has been a director of NM Rothschild merchant bank and chairman of a quoted industrial PLC.
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