Equitable Life Policyholders: Compensation

John Pugh Excerpts

Thursday 23rd March 2017 Commons Chamber

[Bob Blackman]

I thank my hon. Friend for that lengthy intervention. The reality is that, as he suggests, there are more than 1 million victims. The former Chancellor, my right hon. Friend the Member for Tatton (Mr Osborne), accepted at the Dispatch Box that the total sum to be paid in compensation should be £4.1 billion, but 895,000 people have received only 22% of their losses. The payments process has been less than transparent, and policyholders have no way to check the calculations that have been made. That creates a difficulty for all who support the policyholders; at this point, I want to pay tribute to the Equitable Members Action Group, which has done such diligent work on their behalf.

[John Pugh (Southport) (LD)]

Given the failure of regulation and the Treasury’s knowledge of it, as the hon. Gentleman outlines, this is a matter of obligation for the Government, is it not? No individual can discard their obligations because they do not have enough cash, and the Government do have enough cash at the moment.

[Bob Blackman]

I believe that this is a debt of honour. I do not expect my hon. Friend the Economic Secretary to the Treasury to announce that he will open the Treasury chequebook and pay the full compensation today. I have sympathy with the suggestion that, because of the most recent decisions on national insurance, the Budget has not yet been brought into balance. As the motion states, however, I believe that in the long run, as the economy recovers, this debt of honour should be satisfied, and I think that there is a way to do so within the remit of the legislation and the capability of the Treasury.