Equitable Life

Robert Syms Excerpts

Thursday 26th February 2015 Commons Chamber

[Mr Robert Syms (Poole) (Con)]

I congratulate hon. Members on bringing this debate to the Floor of the House. Since my entry to the House in 1997, this matter has come up repeatedly. I look forward to the day when we no longer have to debate Equitable Life. In 2004, I was one of the more than 100 Members who wrote to the parliamentary ombudsman urging her take up the case, following earlier failed attempts. We finally got a report and we finally got action, but unfortunately it took a long time, and in the meantime many constituents in their 70s and 80s have seen their prospects of a comfortable retirement disappear with this sorry saga.

In 2010, I argued that we needed to get a compensation scheme up and running to get money out as quickly as possible and that the question of how much was an argument for another day. I thought that if we got hung up on an argument about how many billions, it would probably delay the whole process again. As it was, the Government acted quickly in 2010: the scheme started operating in 2011, £1.5 billion having been allocated, and by the end of January 896,367 people had received some compensation. Given the complexity of these issues and the difficulties of tracing people, on the whole I think the Government have done a good job delivering those funds.

Nevertheless, 22.4% will have been a disappointment to many constituents. I do not want to get into an argument about the appropriate level of compensation, but like many Members I think the Government should contribute more as the public finances improve.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

The last Government’s lack of action was described as “shabby”, and it would be a tragedy if this Government, having taken that brave decision in 2010, were to be regarded as shabby too, but unfortunately 22% sounds a bit shabby.

[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.