04 November 2008
Chancellor Alistair Darling appeared to hint he is considering
bailing out Equitable Life pension policyholders. Last week the
Government came under renewed pressure form opposition MPs to
respond to a report by the Parliamentary Ombudsman Ann Abraham, who
called for compensation.
The Treasury Select Committee heard the first hints he may
consider payouts as the Chancellor answered questions, many of them
put by members of the public.
A couple wanted to know why Equitable Life policyholders lost
out when bank deposits were guaranteed up to £50,000. Mr
Darling said: "I understand the position of anyone who has entered
into an arrangement and it turns out to be different from what they
thought. I hope we can respond shortly."
More than a million policyholders were affected after Equitable
Life came close to collapse in 2000.
Ros Altmann, a former government adviser on pensions, said:
"Given the Government have bailed out Icelandic bank customers 100
per cent, I can't see how they can justify not compensating
Equitable Life customers."
