Equitable Life
Here you will find information about the Ombudsman’s role in the Equitable Life affair, copies of the Ombudsman’s publications, and a summary of key events, including the decisions taken by the former and current Governments on the issue of compensation.
Current position on compensation
The Coalition Government has committed to ‘making fair and transparent payment to Equitable Life policyholders, through an independently designed payment scheme, for their relative loss as a result of regulatory failure’. To that end, the Government has:
- Confirmed that it accepts the findings of the Ombudsman in full.
- Appointed an Independent Commission on Equitable Life Payments
and asked the commission to reach a conclusion on the design of the compensation scheme by end January 2011. - Announced, as part of its Spending Review 2010, that £1.5 billion will be made available for the Equitable Life Payments Scheme.
- Introduced the Equitable Life (Payments) Bill which will, when passed, give the Treasury the authority to make payments to Equitable Life policyholders and annuitants.
On 16 December 2010, Royal Assent was given to the Equitable Life (Payments) Act 2010.
Further information about the actions taken by the Government can be found on the Treasury’s website. Any questions about the compensation scheme should be put to the Treasury which is responsible for implementing the Government’s proposals. Details of how to contact the Treasury can be found on its website.
The Ombudsman’s views on the Government’s proposals as to compensation
The Ombudsman wrote to Members of Parliament
(36kb) on 26 July 2010 setting out her views on the Government’s plans to deliver its commitment to implement her recommendation for compensation to all those affected by the Equitable Life affair.
On 14 October 2010 the Ombudsman gave evidence before the Public Administration Select Committee in relation to its work to seek clarity on Equitable Life compensation. Further information about this, including the minutes of evidence (when they are available), can be found on the Committee’s pages of Parliament’s website.
On 16 December 2010, the Ombudsman wrote to the All-Party Parliamentary Justice for Equitable Life Group (2.9Mb). In her letter she said:
- Whilst she recognises some of the people who complained to her will be extremely disappointed by the Government's decisions on affordability and eligibility, she cannot say that those decisions are incompatible with the recommendations in her report.
- As Parliament's Ombudsman, it has been her task to report independently to Parliament on this matter, so that Parliament can be informed in the decisions it takes. Parliament has considered the issues raised in her report and the recommendation that the Ombudsman has made and has provided its response. It would not be appropriate for her to comment on what Parliament has decided.
Equitable Life press releases
Read all the press releases from the Ombudsman about the Equitable Life affair
Background to current efforts to secure fair compensation
Here you will find information about the Ombudsman’s role in the Equitable Life affair, along with a summary of her findings and the recommendations made. You will also find a summary of the key events since publication of her report, including the decisions taken by the former and current Governments as to compensation and the role played by Parliament in holding the Government to account for those decisions.
Equitable Life timeline
Here you can find a chronological overview of the key events in the Equitable Life affair since 2003
