Equitable Life chief executive Chris Wiscarson says policy holders should accept a settlement of £2bn from the Government.
Wiscarson told Sky News: “If we take the number of £4bn-£4.8bn and go to the lower end of that, what can the government really afford? £2bn for policy holders – that would be a great start.”
Wiscarson said that thousands of policy holders have written to Treasury financial secretary Mark Hoban, reminding him that he agreed with the Parliamentary Ombudsman Ann Abraham’s recommendations that a reasonable payout for the losses would be between £4bn and £4.8bn.
Wiscarson’s comments come hours ahead of a parliamentary debate around the issue and a vote over a bill which will allow the Treasury to incur the cost of any payout.
The amount available for the policy holders will be announced as part of the Comprehensive Spending Review on October 20th.