Ombudsman condemns Equitable Life payout plans
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Parliamentary Ombudsman Ann Abraham has slammed the compensation plans which could see Equitable Life victims entitled to just £400m, claiming their basis is “unsafe and unsound”.
Last week, Sir John Chadwick published recommendations to the Government, which calculated total payouts should range between £400m and £500m - just a tenth of the £4.8bn the Equitable Members’ Action Group says policyholders have lost.
Abraham says the coalition Government committed itself to implementing her recommendations in full but the Chadwick report “misinterprets” several of the conclusions from her report of 2008 and “ignores” others.
In a letter to MPs, Abraham says: “I find these flaws particularly concerning, providing as they do the basis for some of the central and more controversial proposals within the report.
“They would not in any sense enable fair and transparent compensation to be delivered and seem to me to be an unsafe and unsound basis on which to proceed.”
A Treasury spokesman says: “The Government’s priority is to establish a fair and transparent payment scheme as swiftly as possible. Re-opening the findings of the Ombudsman would lead to delays in achieving this. We will reflect on the report and will listen to representations by interested parties.”
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Readers' comments (7)
Paul Braithwaite | 29 Jul 2010 12:15 pm
What PIFFLE from the Treasury. No-one proposes re-opening the PO findings - now over two years publication - just HONOURING them as it.
The Treasury has been nothing short of mendacious towards Equitable's victims and they were one of the regulators the PO found maladministrative. They should play no part in the compensation scheme. That its dodgy Chadwick Process is still centre stage shows that the Treasury is STILL up to dirty tricks.
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Don Duckworth | 29 Jul 2010 1:05 pm
I whole heartedly agree with Paul Braithwaite.
The Treasury spent 4 years obstructing the Parliamentary Ombudsman and delaying the publication of her findings of 10 cases of regulatory failure by Government departments in their regulation of Equitable Life, of which the Treasury were one.
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Graham Richards | 29 Jul 2010 1:50 pm
Full marks to Ann Abraham for her response. Now let us all both hope and trust that the new coalition Government HONOUR (funny word to the Treasury I know!) the findings of the Parliamentary Ombudsman in a fair and just manner and award proper compensation.
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S. Cowell | 30 Jul 2010 7:50 am
The Treasury & previous government have proved to be duplicitous in the extreme. I hope the present administration prove true to their pre-election pledges.
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David Dalton | 30 Jul 2010 8:15 am
It is not up to the Treasury to make any comments about the OB It is up to the Treasury to obey decisions made by Parliment.
EMAG members demand that they keep their promises otherwise this government will not be trusted at all on any subject
David Dalton
France
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Peter Alker | 30 Jul 2010 1:40 pm
For too long we have have talked about 'The Treasury', these are people who are paid by the taxpayer and have excellent pension schemes, funded by the taxpayer.
Lets have some names out there, who are the people making these decisions.
Pete Alker
Canada
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IVAN GRIME VOICE OF JUSTICE | 3 Aug 2010 11:54 am
AGAIN POLITICIANS IN THE STRIVE FOR ELECTED POWER PROMISE THOSE WHO ARE LEGIMATELY GRIEVED BY GOVERNMENT ACTION TO FULLY RECTIFY AND MAKE FULL READDRESS OF THE LIFE TIME SAVINGS OF THE ELDERLY AND NEEDY.
DAVID CAMERON AND HIS NOW SYCHOPHANTIC TREASURY MINISTER AND HIS LESS THAN ETHICAL MINIONS HAVE NOW RENAGED ON THE PROMISE THAT PROBABLY ENDUCED TWO AND A HALF MILLION EQUITABLE LIFE POLICY HOLDERS AND THEIR SPOUSES AND SIBLINGS ETC TO VOTE FOR THEM.
LET US ALL REMEMBER THAT AT THE NEXT GENERAL ELECTION WE, THE BADLY DONE TO WILL HAVE OUR DAY OF RECKONING. JUSTICE WILL PREVAIL!
THEY THAT HAVE MADE PROMISES THAT THEY HAD NO INTENTION OF KEEPING, WILL LIVE TO RUE THE DAY THAT THEY HAVE CREPT LIKE A SLITHERING SNAKE INTO POWER ONLY TO FALL VICTIM TO THE BITE OF THE EQUITABLE MONGOOSE!
CAMERONS GOVERNMENT WILL BE THE SHORTEST IN MODERN TIMES. REAP WHAT YOU SOW!
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