Labour MPs rejects call for Equitable Life Action

11.43.00am BST (GMT +0100) Thu 22nd Oct 2009

In the House of Commons yesterday Edinburgh South Labour MP Nigel Griffiths refused to support a motion calling on the the Government to accept the recommendations of the Ombudsman on compensating Equitable Life policyholders who have suffered loss. Instead he voted for a Government Motion calling for a further report on widening ex gratia payments to some policyholders.

The Liberal Democrat motion Mr Griffiths opposed was moved by Lib Dem Shadow Chancellor Vince Cable and read:-

That this House notes that 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 15 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.

Sadly the Government amendment was passed by 294 votes to 296 votes. Mr Griffiths was not one of the 18 Labour rebels who voted to accept the Ombudsman recommendation. The Government amendment read:

That this House notes that 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 the Public Administration Select Committee's Sixth Report Justice denied? The Government's response to the Ombudsman's report on Equitable Life; recognises the vital role the Ombudsman plays in public life; reaffirms the duty of Parliament to support the office of the Ombudsman; recognises the Government's determination to introduce an ex gratia payment scheme that is administratively quicker and simpler to deliver than that envisaged by the Ombudsman; further welcomes the Government's decision announced to the House on 20 October 2009 to widen the ex gratia payment scheme to include trapped annuitants who took out policies after mid-1991; urges Sir John Chadwick to report as quickly and expeditiously as possible; and recognises the impact and significant distress that maladministration and injustice have caused in respect of Equitable Life.'."

Liberal Democrat Shadow Chancellor Vince Cable commented: "This was a disappointing result and a further blow to the millions of policyholders who have lost up to half their pensions. 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."

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Find out more about the Equitable Members Action Group.