Equitable Life

Sarah Wollaston Excerpts

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

As part of the spending review process, I have already committed to publishing not only the amount of compensation the taxpayer can afford to pay, but the final loss figure. My objective is to be as transparent as possible on that calculation.

[Dr Sarah Wollaston (Totnes) (Con)]

Although I congratulate the Minister on the undoubted speed and transparency of the process, many of my constituents will be seeking reassurance that it is safe to save in future. Will the cap of 20 to 25% be sufficient in giving them that reassurance? If not, what other measures will be taken?

[Mr Hoban]

I welcome my hon. Friend’s comments. Many people’s confidence in saving has been shaken as a consequence of what happened at Equitable Life, but she will recall that last month, my right hon. Friend the Chancellor announced reforms to the regulation of financial services, which will include a new consumer champion—a consumer markets and protection authority. That is one way to help to improve regulation and to give people confidence about saving for their future.