Extra Equitable Life payments bill defeated

Ten thousand Equitable Life policy holders who annuitised before 1992 will not receive compensation after a proposed amendment to include them in the Government’s compensation package was defeated.

Tabled by Labour MP Fabian Hamilton, the amendment was defeated by 301 votes to 76.

Treasury financial secretary Mark Hoban said Equitable Life paid out more to pre-1992 with-profits annuitants than they would have done if there was no maladministration.

He said it overpaid these policy holders bonuses throughout the 1990s, only cutting the annuities in 2003.