Equitable Life

Baroness Burt of Solihull Excerpts

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

I may be old-fashioned, but I think that it is up to Parliament to decide amounts that are spent and taxes that are raised. The commission will have a role in designing the scheme, but it is important that Parliament takes a view about how much should be spent. I remind the right hon. Gentleman that the ombudsman herself said in her report that we need to take into account the impact of any compensation arrangements on the public purse.

[Lorely Burt (Solihull) (LD)]

My hon. Friend will know that EMAG and many Equitable Life members consider that Sir John Chadwick’s remit, which the Labour party set when it was in government, is deeply flawed. I am glad that my hon. Friend says that what he has announced will be only one building block. Why will Equitable Life members get only 20 to 25% of the absolute loss? Can he reassure me that retrospective payments for Equitable Life members who died waiting for justice will be honoured?

[Mr Hoban]

My hon. Friend makes two important points. She referred to the cap of 20 to 25%, which is Sir John’s assessment and proposal. I am conscious that others, including EMAG, have different views about what the proportion should be, but they accept the principle that some policyholders would have stayed with Equitable Life. Her second point, about the estates of deceased policyholders, is very important. I have given the commission wide terms of reference, with two exceptions. First, it must take into account the estates of deceased policyholders—that is fair. Secondly, there should be no means-testing.