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Home > Pensions > Annuities

By Marc Shoffman | Published Jul 12, 2012

MPs voice anger as Equitable Life redress deadline missed

Equitable Life policyholders and MPs have voiced their anger at Treasury financial secretary Mark Hoban, after a deadline to compensate policyholders expired at the end of last month.

Paul Weir, spokesman for the Equitable Members’ Action Group, said with profits policyholders had been promised payments for individual policyholders by the end of June 2012.

However, an update released last week, by the Treasury’s Equitable Life Payments Scheme, said 90 per cent of individual policyholders had been contacted to either “make payment; inform of nil payment; request further address verification in advance of making payment; inform of eligibility within the scheme”.

The All Party Parliamentary Group on Equitable Life has written to Mr Hoban to raise concerns about delays but has not yet had a response.

In one case, an elderly couple, Norma and David Green, who were part of the same pension scheme, have had different experiences. Mr Green received his first payment in June, but Mrs Green has had no correspondence from Payments Scheme officials.

Mr Green added that a friend who was in the scheme had received her money in February, despite being younger. This is despite the Payment Scheme promising to pay older people first.

Mr Weir said: “Emag is receiving hundreds of phone calls and emails from distressed pensioners who want to know why they are still waiting for payment, or who believe they have been forgotten.”

Mr Hoban’s office did not respond to invitations to comment.

The government announced in October 2010 that £1.5bn would be made available to the scheme for distribution to about 1m eligible policyholders. The scheme was launched in June last year.

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