The Board of Equitable Life has called on the coalition government to push for fair and transparent payments to policy holders, who suffered financially after the insurer collapsed following a lost court battle over guaranteed pensions.

In a letter to the financial secretary of the Treasury, Mark Hoban MP, the Board of Equitable Life said they wanted to see the minister honour the Government’s commitment to fully implement the recommendations made by the Parliamentary Ombudsman regarding compensation to the policy holders.

The letter urges the minister to accept that the losses amounted up to £4.8bn when considering compensation, and to reject recommendations for compensation valued at £400m - £500m, made in a report by retired judge Sir John Chadwick, and commissioned by the last government,

“The new government could not have been clearer in its manifestos and its coalition agreement; it committed to follow the Parliamentary Ombudsman’s recommendation. The persistent references to Sir John Chadwick’s work severely undermines our confidence that government will deliver on its commitment,” Chris Wiscarson, Equitable Life’s chief executive commented.

“Let’s not make Equitable policyholders victims three times over. First, at the hands of the regulators as so clearly articulated by the Parliamentary Ombudsman; second, at the hands of the Labour Government who failed to bring closure over a decade; and now third, compensation that will be decimated if Sir John Chadwick’s advice, meant for the Labour Government and slated by the Ombudsman, is used,” he added.

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