Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Laurence Robertson Excerpts
Tuesday 1st March 2016

(8 years, 8 months ago)

Commons Chamber
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Greg Hands Portrait Greg Hands
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I join the hon. Gentleman in campaigning for the UK to remain a member of the EU. That is the right thing for us to do both for the public finances overall and for the future of the UK economy, as the G20 communiqué made clear over the weekend. It may well have an impact on the university sector, too. I am sure that that will be one of the questions featured in the forthcoming debate leading into the referendum.

Laurence Robertson Portrait Mr Laurence Robertson (Tewkesbury) (Con)
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9. If he will reopen the compensation scheme for Equitable Life policyholders.

Harriett Baldwin Portrait The Economic Secretary to the Treasury (Harriett Baldwin)
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The Equitable Life payment scheme has now successfully traced and paid 90% of eligible policyholders. Payments to with-profits annuitants will continue for the life of these annuities. The scheme is now closed to new claims.

Laurence Robertson Portrait Mr Robertson
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I thank the Minister for that response, but given that many policyholders lost out because of a failure of regulation, which should be overseen by not just this Government but any Government, is it not fair that those policyholders should receive compensation? If they do not, how can any investor have any confidence in the regulatory system that is put in place?

Harriett Baldwin Portrait Harriett Baldwin
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The Chancellor has done more than anyone else to tackle the regulatory failure of the 1990s with regard to Equitable Life. For example, with-profits annuitants will receive full compensation for the life of the annuity, pre-1992 annuitants have received ex gratia payments of up to £10,000, and £775 million has been paid out tax-free to others, despite the constrained public finances. Those on pensions credit got a doubling of their payment just before Christmas.