Outrage at government stalling on Equitable compensation fund

The government has been criticised for failing to keep its promise to have a decision by the end of next week on whether to establish a compensation fund for Equitable Life policyholders.

Harriet Harman, Leader of the House of Commons, told MPs yesterday that the government would not be making a statement on Equitable until the week beginning January 12, when Parliament sits after the Christmas break, The Times reports.

The decision, already delayed once, has left more than a million policyholders, who lost an estimated £4bn when Europe's oldest mutual nearly collapsed, waiting until next year to learn the outcome.

The lack of action has angered Vanni Treves, Equitable Life chairman. 'It is an outrage that the Prime Minister continues to treat our policyholders with such contempt,' he said.

Further reading:

Equitable forced to abandon fund sale

Govt accused for missing Equitable warning signs

Read The Times story