Equitable Life

Mark Williams Excerpts

Thursday 26th February 2015 Commons Chamber

[Mr Syms]

I agree. For many of us, it is a start rather than the finish.

The constituents I see in my surgeries have a quiet dignity about them but still feel aggrieved and think that the Government ought to move some more. My main plea today is for the Treasury to consider the issue. The public finances are still a challenge and will be a challenge for the next Government, but I think that as things improve, the Government should be able to provide further funds.

[Mr Mark Williams (Ceredigion) (LD)]

Will the hon. Gentleman give way?

[Mr Syms]

I will in a moment; I just want to make a few more points.

The reality is that most of those affected do not have the ability to earn money or to improve their particular circumstances. They made decisions predicated on certain estimates, and they have been badly let down. I am glad that the coalition Government have moved as they have. We have a good story to tell so far, but it could be an even better story if they listened to the concerns of Members on both sides of the House and made further movement.

The fact remains that £1.5 billion has been allocated, and we have heard that £1 billion has already been paid out to 896,367 policyholders, but that 140,000 have been untraced. On the assumption that many will inevitably remain untraced, it must leave a balance in the fund of £500 million. At what point, then, does the scheme conclude that it will not trace some of these people? At that point, will some of the £500 million be available for further distribution to the 896,000 or so who have already received some money? We can argue about whether there should be more money, but if £1.5 billion has been allocated and not all of it has been sent out, that provides quite a strong argument for making a decision at some point to allocate more of the money available in the Treasury to help these people. I hope that the Government will address that issue first.

The second issue is whether we could top up the £1.5 billion in due course to provide a much more satisfactory conclusion. Like many colleagues, I have retired constituents in my constituency—Poole—who are prudent and sensible people. Most of them made provision for their retirement in the best way they could. They did not go on gambling cruises and they did not go to Las Vegas: because they were responsible, they decided to invest. This provides a very strong case for a Government who believe in the ethics of people acting responsibly to stand by those people when they have been let down.

--- Later in debate ---

[Stephen Lloyd (Eastbourne) (LD)]

I apologise for being a few minutes late at the beginning of the debate. It is a pleasure to co-sponsor it with my hon. Friend the Member for Harrow East (Bob Blackman) and the hon. Member for Leeds North East (Fabian Hamilton). I would like to compliment the latter on being as active during the last Government as he has been during this Government to fight the Equitable Life pensions corner. I pay tribute to him for that.

Many have spoken today, and this issue has been going on throughout the term of this Parliament and for many years before that. I am keen not to repeat what others have said. Let me make it clear what we are asking for through this debate, which is for

“the Government to make a commitment to provide full compensation during the lifetime of the next Parliament as the economy and public finances continue to recover.”

That wording was deliberate. We recognised, as we always recognised on the all-party parliamentary group, that we inherited a catastrophic economic situation so that providing the full amount of money would cause real problems. I believe that we have been reasonable and sensible all the way through. We understand the challenges faced by the Government, and the motion, as I have clarified, recognises that. We are fully aware of the challenges with our own economy and the global economy, so we are not asking for everything appropriate to be paid immediately. Rather, we advocate achieving doing that over the next few years as the economy recovers, which is fair and reasonable.

Ann Abraham was the parliamentary ombudsman all those years ago, producing the final report in 2008. She said:

“The central story of this report is that this robust system of regulation was not, in respect of the Society, implemented appropriately—that is, consistently, fairly, and with proper regard to the interests of those directly affected”.

All of us who are present today, as well as the 200 or so members of the all-party parliamentary group, recognise that the ombudsman herself saw that the regulatory framework had failed, and we understand the financial challenges. However, the reason we are here, and the reason the all-party parliamentary group, with the support of EMAG, has not stopped lobbying and campaigning throughout the current Parliament—I was privileged to become its secretary literally within weeks of being elected in 2010—is that this is a matter of not just probity, but honour. The regulator failed, and this was Government regulation.

[Mr Mark Williams]

My hon. Friend is right to say that it is a matter of honour, but it is also a matter of urgency. He is making his case in a very modest way. May I invite him to endorse what was said earlier about the urgent need to settle individual claims—I think that the figure we heard was £115 million—and to address the issue of elderly people whose cases may well not be settled before they die unless we act now?

[Stephen Lloyd]

My hon. Friend is absolutely right. A number of people are now reaching an age when something needs to be done extremely quickly. A constituent of mine, Billy Murphy, a variety artist for 70 years, had been lobbying me patiently, and I had been supporting him, until he sadly passed away in January. He had been making contributions for many years, and he was a very good example of the people to whom my hon. Friend and many others have referred: decent, hard-working people who were prudent and put money aside. Those people have lost out, not because of their own inadequacy —not because they took a punt, or played the stock market—but because they invested in a well-established and respected pensions company that was regulated by the Government. It was regulated by the Government: that is the whole point, and that is why we as a nation, whichever Government are in power, have a real responsibility to do what is right.