Mike Penning has called for a debate on compensation for victims of the near-collapse of Equitable Life.

Nearly one million policyholders lost money in the near-collapse of Equitable Life in 2000. It is now nearly a year since publication of the Parliamentary Ombudsman’s report which concluded that a compensation scheme should be set up.

The Government’s response was to appoint retired judge Sir John Chadwick to investigate and advise on any form of compensation.

Mike told MPs:

“We need a debate on this, because thousands of people have lost out. They need the compensation that they deserve and that they have rightly been told they will get. Can we have a debate on Equitable Life soon, before more of these people, sadly, die off and do not get the compensation that they deserve?”

On leaving the chamber, Mike added: “It is nearly 10 years since the near-collapse of Equitable Life and nearly a year since Ann Abraham, the Parliamentary Ombudsman, published her report calling for a compensation scheme. The Government are using delaying tactics by appointing a judge to investigate and advise on compensation options. We have no idea when he is expecting to report.

“My biggest fears are that any proposals will either only benefit a very small number of policyholders, require an invasive degree of means testing or result in such a small amount of compensation that it won’t make any difference to the quality of life of the victims.

“This Government has an appalling record on savings and pensions. We should be encouraging people to save for later life, but young people look at the experience of savers and pensioners and think ‘why bother?’”

He added:

“The Government needs to get to grips with this issue – it is not going to go away – and we need to help those who have lost out before its too late. A lot of people are suffering as a result of these delays.”

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Hansard:

Mike Penning (Hemel Hempstead) (Con): May I say to the Leader of the House that she cannot keep running away from a debate on Equitable Life? Her deputy is a long runner, but this is a marathon that the Government are not going to win. We need a debate on this, because thousands of people have lost out. They need the compensation that they deserve and that they have rightly been told they will get. Can we have a debate on Equitable Life soon, before more of these people, sadly, die off and do not get the compensation that they deserve?

Ms Harman: Work is under way on the investigation by the judge that was announced by my right hon. Friend the Chief Secretary to the Treasury.

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