News
Friday, May 22, 2009
News release from Andrew Selous MP
Over 120 pensions and savers, from across South West Bedfordshire, with failed Equitable Life policies have contacted Andrew Selous over the last 7 years. They had their concerns raised in a House of Commons debate on Tuesday. They are among the million policyholders nationally who are facing a much poorer retirement as a result of the difficulties Equitable Life got into in 2000.
Speaking after the debate Andrew Selous said, “I continue to get regular letters from people who are bitter about Equitable Life’s collapse and the government refusal to accept the Ombudsman’s recommendation that compensation should be paid, taking account of the public expenditure consequences. The Opposition have accepted her recommendations and are pressing the government to start paying out compensation to policy holders now before it is too late for them, as around fifteen a day are dying. The government are dragging their feet on this”.
Note: This action is fully supported by the local Association and the PPCs Nigel Huddleston and Jeremy Brier. Why does this Labour government give priority to banks and not pensioners?
The Exchange in Hansard was as follows:
Andrew Selous MP (South-West Bedfordshire): I welcome this debate. Does my right hon. Friend agree that the issue touches not only on policyholders’ disgust at how they have been treated, but on saving for the country as a whole? If people lose faith in saving for the future, that will have dire consequences not only for public finances, but for millions of our citizens.
David Davis MP (Haltemprice and Howden): My hon. Friend is entirely right. The regulatory system’s role is particularly important, and I will return to that. The Government must recognise that one purpose of the regulatory system is to encourage saving by providing a degree of guarantee that malpractice—not maladministration—or serious misjudgment should not happen. That is fundamental to the million or so policyholders, and to the future of savings.
Ian Pearson MP (Economic Secretary to the Treasury): We did not accept the compensation recommendation, but at the Government’s discretion, and in recognition of the impact that may have been suffered by some policyholders, we have announced a scheme that will deliver help to those affected by the events at Equitable Life who need it most.
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