Equitable Life (Payments) Bill

Tim Farron Excerpts

Tuesday 14th September 2010 Commons Chamber

[Mr Hoban]

My hon. Friend will recognise that the spending review is not simply a linear process. Some projects will be scrapped completely; some will suffer a small cut. We need to look at each case on its merits, rather than assume that an across-the-board measure will apply to all spending bids in the spending review.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Without speculating what proportion of the £5 billion estimated losses will be compensated, does the Minister agree that, whatever payment is announced today, the Government will recognise that it is merely a first down-payment on returning the losses to policyholders, with a view to further payments being made in future years?

[Mr Hoban]

A number of hon. Friends have made that point, and a number of representations made to me put an alternative point of view—that what policyholders would like is rapid resolution and a swift payment scheme to bring closure to the matter. The spending review is to cover the lifetime of this Parliament, and the figure that is settled upon should reflect the coalition’s commitment to resolving the issue once and for all.