Yesterday afternoon in the House of Commons the Government was proposing an enabling Bill which would allow compensation to be paid to Equitable Life policyholders. The Bill was passed without objection because, whatever the size of compensation, without the Bill no compensation could be paid.
However, there was one contentious vote around the issue of whether the With-Profit Annuitants [WPAs] who took out an annuity before 1992 would be compensated for the maladministration which took place after 1992. The Government’s position was that they would get no compensation because these policyholders had locked in to their annuity. John voted against the Government so that these WPAs would be treated equally with other policyholders. The Government won the vote 301-76.
John said:
“The Government’s proposals to exclude the pre-1992 WPAs from the compensation pot is unfair. These annuitants should be treated equally and not excluded.”
“Meanwhile, I am pressing the Treasury with more questions to see whether further progress can be made.”
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