Equitable Life

Mary Glindon Excerpts

Thursday 31st January 2019 Commons Chamber

[Mary Glindon (North Tyneside) (Lab)]

It is an honour to follow the eloquent and succinct right hon. Member for New Forest West (Sir Desmond Swayne). I pay tribute to the hon. Member for Harrow East (Bob Blackman) and my hon. Friend the Member for Leeds North East (Fabian Hamilton) for their work as chair and co-chair of the all-party group in fighting for justice for Equitable Life policyholders.

I make no apology for repeating some of what has already been said, and I am sure others will do the same. It is a disgrace that there are over 1 million victims of this pensions scandal. It is even more disgraceful that it is 11 years since the ombudsman said that victims had lost their pensions because of a decade of serious serial regulatory maladministration, and it is a total disgrace that, despite the Treasury admitting it had blame for the scandal, these policyholders still have not been compensated in full.

The north-east regional branch of EMAG has advised me that there are over 2,000 victims of this scandal in North Tyneside. In recent years I have been contacted by several constituents who are rightly aggrieved because they have received only just over 22% of their pension pot. One constituent is in the group of around 8,500 people who are considered the oldest and most vulnerable— the pre-1992 policyholders—and who have been treated less favourably than those who bought their annuities later. I spoke to him yesterday, ahead of this debate, and he pointed out that, sadly, a number of these annuitants are no longer with us, as other colleagues have also mentioned. He is particularly concerned that the Government keep safe the data relating to Equitable Life annuitants until the money is available to recompense those who have lost out. I hope the Minister will reassure my constituent on that request today.

My constituent is, of course, correct in pointing out that some victims will never see justice done. No one is getting any younger, and it is heartbreaking that thousands upon thousands of Equitable Life victims, through no fault of their own, have been left without the security they thought they had wisely invested in for their old age.

[Liz Twist (Blaydon) (Lab)]

I am one of the 2017 intake who have been contacted by constituents affected by this. Does my hon. Friend agree that, if we want people to save for their future through a pension, we have to put right the wrongs that have been done? Modest people who saved well for their pension have now lost out in their old age.

[Mary Glindon]

I thank my hon. Friend for that question, which I will be addressing later.

It is frustrating for us to know that justice has not been done, but how much worse must be the anger and frustration of those who feel cheated? Today’s motion specifically calls upon the Government to make a commitment to provide full compensation to victims of the scandal, with the end of austerity now in sight. EMAG’s demands have been put forward reasonably. As the Chancellor announced in the Budget that austerity is over, it seems that the statement by one of the Minister’s predecessors, following a meeting with an APPG delegation two years ago, that the demands—the payment scheme funding for the pre-1992 annuitants and the £2.6 billion funding to recompense fully the 895,000 victims—could not be met because of public purse constraints, even if they were spread over a period, and because it would run contrary to the Government’s efforts to restore sustainability to the public finances, is no longer applicable. That has been mentioned by previous speakers, and I think the Minister will hear it again.

Paying these victims what they are owed will not only be doing what is right but will send out the message that people can and should save for their retirement, in the knowledge that the Government will protect them if such a scandal, heaven forbid, were ever to happen again. I hope the Minister will be able to assure Members present that the Equitable Life victims we represent are no longer subject to the constraints of austerity. It is shameful that the years of austerity were ever used as an excuse for the Government to deny their responsibility for paying these pensioners and future pensioners their entitlement.

My message to the Minister and the whole Treasury is that, in these times of trouble and uncertainty, they should take the opportunity to restore some faith in the Government and our Parliament by, at last, paying the Equitable Life policyholders their rightful due.