Earlier this week I joined other MPs to press the Minister to honour his election pledge to compensate Equitable Life victims. He told us he would make a proper statement before the summer recess.
Today he kept his word, published the Chadwick Report and the draft Bill to allow the payments.
The Report concludes that Equitable Life policy holders lost between £2.9 billion and £3.7 billion. Chadwick recommends that compensation is paid, as the regulatory failure aggravated the losses. He proposes offering 20-25% of the loss in recognition of the regulatory mistakes.
The government has not accepted this recommendation. Instead, the Minister has said he will consult widely on it before reaching a conclusion as part of the autumn spending review.
He has appointed a three man commission to work out the details of a fair and independent scheme to decide and make the payments, once the total is agreed.
Any constituent who wishes to contribute to the Minister’s consultation should send their views to the Financial Secretary at HM Treasury, Whitehall London SW1.