The Government is expected to come under renewed pressure to provide compensation to the thousands of Equitable Life annuity holders who lost up to half of their hard earned savings when the mutual nearly collapsed.
Sources understand that the Public Administration Select Committee (PASC) scheduled a last-minute hearing for Thursday this week to look into the Government’s poor response to Parliamentary Ombudsman Ann Abraham’s pretty damning report into Equitable Life.
The Government did agree ten days ago to Ms. Abraham’s recommendations that it pay compensation, though fears have now mounted that many annuity holders will not qualify for any payout as means testing could be utilised. Equitable was forced to shut down to new business in 2000 after being unable to pay guaranteed annuities. It offered guaranteed annuity rates it simply could not afford.
The PASC has already looked hard into the Ombudsman’s report. It is believed the PASC is now looking to discuss Equitable once again, following many complaints that there are people that will not qualify for compensation.
Further debate is likely on this debacle, and it is likely to focus around the Government’s refusal to take on board Ms Abraham’s report in full.