The Treasury has so far paid out over £70m to Equitable Life policyholders as part of the compensation scheme to pay out £1.5bn in compensation to around one million customers.
A progress report on the compensation scheme published by the Treasury reveals that as at the end of January, 95,601 policyholders have received compensation totalling £70,749,471. The Treasury says this equates to 20 per cent of all individual policyholders due a payment from the scheme.
Out of the total, £61,444,105 has been paid to 84,577 non with-profits annuitants who have received their lump sum payment from the scheme.
A further £9,305,366 has been paid to 11,024 with-profits annuitants who have received their first payment from the scheme.
The Treasury says: “To ensure high volumes of payments were and continue to be made, the scheme has started with the less complex cases, such as single policyholder, thus preventing the payment systems being placed under undue initial strain.
“No delay is anticipated with the remaining cases, and eligible individual policyholders whose address the scheme can verify will hear from the scheme as planned.”
The Treasury says the vast majority of individual policyholders due a payment will have it received it by summer 2012.
Equitable Members Action Group general secretary Paul Braithwaite says: “For many this is a case of too little too late.”
The campaign group has hit out at the “derisory” size of compensation payouts and says there has been a lack of transparency about how the Treasury has calculated the amount of compensation being paid.