Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the funding allocated for compensating Equitable Life With-Profits Annuitants has been spent up to and including 2024-25; and how much was forecast to be spent on both a cash and discounted basis.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The previous Conservative Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme had issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme. (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).
The total value of payments made by the Scheme stood at £1.35 bn as of 30 May 2025, and the Scheme is on track to pay out the remainder.
Asked by: John Lamont (Conservative - Berwickshire, Roxburgh and Selkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the £625 million allocated for compensating Equitable Life with-profits annuity holders has been spent up to and including 2024-25; and how much was originally forecast to be spent on a (a) cash and (b) discounted basis.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Conservative and Liberal Democrat Coalition Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme had issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme. (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).
The total value of payments made by the Scheme stood at £1.35 bn as of 30 May 2025, and the Scheme is on track to pay out the remainder. Annual annuity payments to the over 17,000 eligible WPAs amounted to £20m in 2025.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will consider establishing an Independent Commissioner to assess the claims of Equitable Life policyholders, the allocation of compensation, and the methodology used to distribute it.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 under the approach put in place by the Liberal Democrat and Conservative coalition government.
Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Harpreet Uppal (Labour - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the likelihood of the £100m contingency from within the £1.5bn allocated for compensating Equitable Life policyholders being needed to make payments to eligible With-Profits Annuitants.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016. The only remaining part of the Payment Scheme in operation is the annual payments made to eligible With-Profit-Annuitants and the Scheme is on track to distribute the remainder of the £1.5 billion as planned.
Asked by: Luke Taylor (Liberal Democrat - Sutton and Cheam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to appoint an independent commissioner who would be responsible for outstanding losses from the Equitable Life scandal.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Under plans put in place by the Liberal Democrat and Conservative coalition Government, the Equitable Life Payment Scheme was fully wound down and closed in 2016. The only remaining part of the Payment Scheme in operation is the annual payments made to eligible With-Profit-Annuitants and the Scheme is on track to distribute the remainder of the £1.5 billion as planned.
There are no plans to reopen any decisions relating to the Payment Scheme. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government have reviewed the underspend on the Equitable Life Payment Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Under the previous Conservative Government, the Equitable Life Payment Scheme was wound down and closed in 2016. The only remaining part of the Payment Scheme in operation is the annual payments made to eligible With-Profit-Annuitants and the Scheme is on track to distribute the remainder of the £1.5 billion as planned.
There are no plans to reopen any decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will consider the potential merits of reopening the Equitable Life Compensation Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 under the approach taken by the Conservative and Liberal Democrat Coalition Government. There are no plans to reopen any decisions relating to the Payment Scheme. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered appointing an Independent Commissioner to review unresolved concerns from former Equitable Life policyholders on the (a) methodology and (b) distribution of compensation under the Equitable Life Payment Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 and there are no plans to reopen any decisions relating to it. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much is the average payment to those eligible With-Profit-Annuitants within the Equitable Life Payment Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme had issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme. (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).
The total value of payments made by the Scheme stood at £1.35 billion as of 30 May 2025, and the Scheme is on track to pay out the remainder. Annual annuity payments to the over 17,000 eligible WPAs amounted to £20.25 million in 2025.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many eligible With Profit annuities are currently covered by the Equitable Life Payment Scheme.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme had issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme. (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).
The total value of payments made by the Scheme stood at £1.35 billion as of 30 May 2025, and the Scheme is on track to pay out the remainder. Annual annuity payments to the over 17,000 eligible WPAs amounted to £20.25 million in 2025.