Equitable Life defeat a blow to policyholders who lost half their pensions

4.30.00pm BST (GMT +0100) Wed 21st Oct 2009

Commenting after the narrow defeat of an Opposition Day motion calling for compensation for victims of the Equitable Life fiasco, Liberal Democrat Shadow Chancellor, Vince Cable said:

"This was a disappointing result and a further blow to the millions of policyholders who have lost up to half their pensions.

"It is especially disappointing given that more than 300 MPs from all sides of the House, including 113 Labour MPs, have backed an Early Day Motion that is virtually identical to the motion defeated today.

"The failure to organise a system of compensation nine years after the event and two-and-a-half years after the Ombudsman completed her report identifying maladministration is a cynical victory for Treasury foot-dragging at the expense of large numbers of pensioners."

ENDS

Notes

1. The list of MPs backing the EDM is available here:

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=38586&SESSION=899

2. The Liberal Democrat motion, which was defeated by just 25 votes, is copied below.

Nick Clegg

Vince Cable

Jeremy Browne

Steve Webb

David Heath

Paul Burstow

EQUITABLE LIFE

That this House notes the Parliamentary Ombudsman has taken the unusual step of using powers under the 1967 Act to present Parliament with a further and final report on Equitable Life; also notes that the Public Administration Select Committee's Sixth Report, Justice denied? The Government's response to the Ombudsman's report on Equitable Life, concluded that the Government response to the Parliamentary Ombudsman's report was inadequate as a remedy for injustice; recognises the vital role the Ombudsman plays in public life; reaffirms the duty of Parliament to support the office of the Ombudsman; believes the Government should accept the recommendations of the Ombudsman on compensating policyholders who have suffered loss; notes the outcome of the Judicial Review announced on 15th October extending the period for compensation claims back to 1991; welcomes the formation of the All-Party Group on Justice for Equitable Life Policyholders; and notes with regret its necessary formation and the fact that over 30,000 people have already died waiting for a just resolution to this saga