Some 945,000 Equitable Life victims will receive payments equivalent to 22.4 per cent of their relative losses after the Treasury confirmed it will allocate £775m in compensation on a pro-rata basis.
The Independent Commission on Equitable Life Payments report, published today, confirms the oldest non with-profit policyholders and the estates of deceased policyholders will be prioritised in the order of payment. The remaining 100,000 policyholders who incurred relative losses will receive no payment because their pro-rata allocation amounts to less than £10.
The commission said administering such small payments would be “disproportionate to the administrative costs of making them” and would be of “negligible significance” to recipients.
Treasury financial secretary Mark Hoban (pictured) says: “We have always been committed to making fair and transparent payments to Equitable Life policyholders, through an independently designed payment scheme, for their relative loss as a result of regulatory failure.
“I am grateful for the work the commission has done to establish policyholders’ concerns and have used this to recommend the principles of the payment scheme. I welcome their recommendations and we will now use them as the basis for making payments to policyholders.”