Equitable Life (Payments) Bill

Robert Smith Excerpts

Tuesday 14th September 2010 Commons Chamber

[Mr Hoban]

If I may continue a little more about the Bill, I will take more interventions shortly.

The Bill allows for payments made to policyholders to be disregarded for certain purposes, including making them tax-free in the hands of the recipients. The Government will also be able to consider what effect the payments might have on individuals’ eligibility for certain types of means-tested state funding support, particularly tax credits, and how that might be mitigated. A final decision has yet to be made on whether those powers will be used, but it is sensible to include them in the Bill so that any arguments can be taken into consideration. It is essential that we take every action to avoid the scheme becoming unnecessarily complex.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

I welcome the fact that the Bill places no restraint on the level of compensation. I wish to reinforce the point that, to restore confidence in the market, there has to be a fair resolution. Is the Financial Secretary still open to submissions on the level of compensation in the run-up to the comprehensive spending review, and is it still possible for people to make points that will influence that level?

[Mr Hoban]

Yes. Although we encouraged people to make representations by early September, I and my officials will still listen to any later representations. If anyone feels that they have not expressed their view, I will happily entertain their representations.