View more on these topics

Equitable victims fear Government’s compensation pledge may be slashed

The Equitable Members’ Action Group has questioned the Government’s promises of fair compensation after reports that the Treasury may cut compensation levels to £1bn.

Emag points to the £4.67bn of losses for Equitable Life investors published by the Parliamentary Ombudsman in her 2008 report.
It fears the Treasury will use the work of Sir John Chadwick to justify a huge reduction in the amount of compensation.

In March, Emag withdrew from working with Chadwick’s review of compensation for policyholders, labelling his work “a Treasury stitch-up”.

Emag general secretary Paul Braithwaite says: “We are deeply disturbed by the gulf between the expectations raised by the Government’s promise and what appears to be actually going on at the Treasury. If the Government offers victims 20p in the pound, there will be outrage.”

In a letter sent to MPs, Emag argues that if cuts have to be made to Government spending now, it should be a percentage across the board and Equitable Life victims should not be first in line to shoulder the whole burden.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Marlene Raymond 17th June 2010 at 9:40 pm

    I think it is unacceptable that the government has not named a date for policyholders who lost out with Equitable Life. We have been waiting for so long, its time we got our money back that we lost and a decent compensation. Why are the taxpayers always the ones to lose out for Government expenditure.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm