Victims of the Equitable Life collapse can finally expect compensation as the new Coalition Government pushes forward new legislation.

Ross, Skye & Lochaber Lib Dem MP Charles Kennedy described the announcement as a “massive relief” for the millions of people who lost up to half of their pensions in the collapse.

The Equitable Life Bill, which was outlined to the House of Commons on Wednesday, will give the Treasury the authority to make payments to policyholders or dependents who have been fighting for compensation since 2000.

A previous parliamentary motion tabled by the Liberal Democrats to get compensation for the millions of people involved was defeated in October 2009.

Charles Kennedy said:

“The previous Government repeatedly chose to turn a deaf ear to the millions of people who lost their savings through the collapse of Equitable Life.

“People all over Ross, Skye & Lochaber lost up to half their pensions in the fiasco yet Labour failed to act, ignoring Liberal Democrat efforts, ignoring the High Court and ultimately ignoring an Ombudsman report which exposed major regulatory failure.

“This Bill will come as a massive relief to thousands of pensioners who have been left in a position of uncertainty for much too long through no fault of their own.

“It represents a clear statement of intent by the new Coalition Government to do things differently. I hope it will be followed by quick action – and reflected in other areas of policy too.”

Notes:

1. The full text of the written statement to the Commons is available here:
http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm100526/wmst...

2. Vince Cable tabled an Opposition Day Motion on 21 October 2009. The motion is available here: http://www.theyworkforyou.com/debates/?id=2009-10-21c.918.1

3. Vince Cable tabled a cross-party EDM in May 2009 urging the Government to accept the Parliamentary Ombudsman’s recommendations on compensating Equitable Life policyholders. The motion can be found here: http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=38586&SESSION=899