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Annuity scandal payout.

VICTIMS of the Equitable Life scandal who have been shut out of a compensation scheme will receive PS5,000, the Government announced yesterday.

Campaigners, including actress Honor Blackman, have carried out high-profile demonstrations over a decision to leave 10,000 people out of the compensation scheme because they bought their annuities before a cut-off point in 1992.

George Osborne told the Commons that those on lower incomes will receive PS10,000. He described the payments as "ex gratia" and said they are being made because the Government wants to do "the right thing".

The Government will make flat-rate lump sum payments to living, with-profits annuitants who bought their annuity from Equitable Life Assurance Society before September 1 1992. Payments will start in 2014 or earlier.

The Equitable Members' Action group (Emag), which has been lobbying for the Government to do more to help the pre-1992 annuitants who missed out, said the payouts were like a "winter fuel payment on steroids".

Paul Braithwaite, general secretary of Emag, said: "I welcome the news that the screaming injustice of the exclusion to date of Equitable Life's oldest pensioners from any compensation is to now be partially addressed."
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Publication:The Journal (Newcastle, England)
Date:Mar 21, 2013
Words:194
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