Equitable Life Scandal

I appreciate that many individuals remain very disappointed with the level of payments being made to Equitable Life policy holders. However, the Ombudsman was clear that the total sum should reflect the interests of the taxpayer.
 
In her 2008 report, which provides the foundation of the Equitable Life Payment Scheme, the Parliamentary Ombudsman stated that "It is appropriate to consider the potential impact on the public purse of any payment of compensation."
 
While the total relative losses suffered by this group are in the region of £4.1 billion, in light of the pressures on the public purse, the Government has decided to make £1.5 billion available for the payments scheme. It believes this is a fair balance between the interests of policyholders and taxpayers.
 
To determine how to distribute the remaining funds, the Government established the Independent Commission on Equitable Life Payments. The Commission invited views on this matter from interested parties and considered a number of options. Its final recommendation was that the simplest approach was for a 22.4 per cent pro-rata to be applied to payments to non With-Profits Annuitants, which the Government accepted.