Equitable Life

Debate between Julie Cooper and Bob Blackman

Thursday 11th February 2016 Commons Chamber

[Julie Cooper (Burnley) (Lab)]

I thank the hon. Gentleman for securing this important debate on a matter that affects a number of my constituents. The Government have cited affordability constraints as a reason for not bridging the gap and providing full compensation. Given that we are now in 2016, and the Chancellor constantly tells us that the economy is in a far stronger position, should we urge him to look again at the issue, so that those who have been so badly affected and who have worked all their lives and invested in a prudent fashion, should be compensated?

[Bob Blackman]

I agree wholeheartedly with the hon. Lady. We now know how many victims there are, and what the payouts have been. For with-profit annuitants, 38,135 victims have received £336 million, and those payments will continue over the next few years. However, 890,472 victims have received only 22.4%, and it has been difficult for members of the scheme to understand the basis on which that has been delivered. As has been mentioned, the Government said that they could not afford all that money to pay people out, but people who are in that position will need compensation over several years. They do not need all the money to be put into the scheme upfront; they need it to be spread over a number of years while they are pensioners. As the economy recovers, the Government should supply additional funds, as the Treasury can afford it, to top up the scheme and ensure that those who suffered relative loss receive the full compensation package due.