15/12/08 - Justin & Robert's Frustration At Latest Equitable Life Delay

Swindon Conservative Parliamentary candidates, Cllr Justin Tomlinson (Swindon North) and Robert Buckland (Swindon South) have expressed their frustration that the Government has postponed its response to the Ombudsman's report on Equitable Life until next year despite its promise to respond by the autumn.

Government ministers are sitting on their hands while Equitable Life policyholders face uncertainty in the midst of an economic downturn. The report by the Parliamentary Ombudsman landed on ministers' desks back in July, recommending compensation because of government and regulatory failures.

The Government said it would respond to the Ombudsman’s report by the autumn, a promise it has failed to keep.

In a recent debate on Equitable Life, Conservative MPs maintained the pressure on the Government to give an urgent response to the Ombudsman’s report. The Prime Minister then said ministers would make a statement before Christmas.

However, the Government again reneged on its deadline and now says Equitable Life policyholders will have to wait until the New Year before it responds to the report.

Justin commented:

"The Prime Minister has broken a promise within days of making it to Parliament and let down thousands of Equitable Life savers waiting for justice.  I sincerely hope that when the Government does eventually respond to the Ombudsman’s comments it will establish a payment scheme without further delay."

Furthermore, Robert added:

"We believe that any scheme will need to take account of the Ombudsman’s comments that, at around the same time that Equitable Life reduced policyholder values and bonuses, it appears to be common ground that such losses were suffered across the with-profits industry at the relevant time.' "

This means that some of the loss suffered by Equitable Life policyholders was a result of market conditions and some was due to maladministration. Any payments made to policyholders need to reflect that split, which is acknowledged by the Ombudsman. Furthermore, in designing a scheme, the Government will need to take account, as the Ombudsman herself noted, of the impact on the public purse.