This is another confidence trick pulled by Brown’s government.
They’ve kicked the whole issue of compensation for those tricked out
of their savings by government incompetence into the long grass.
30,000 of them have died already waiting and another 15 die every
day, it is said.
Read the immediate report of Yvette Cooper’s bvland promiuse of
nothing much below. But even so the report makes clear that -
despite the Ombuds man’s ruling - the government will not give
compensation at all but will make “ex-gratia” payments (perhaps) to
those who are deemed most deserving.
That is another way of saying that any payments made will be means-
tested.
There should be no such quibbles. Those who have had their money
stolen as a result of proven government mismanagerment should get it
back in full. The government is chucking our money around like
confetti. HERE they a clear duty. All of us are dishonoured by
their quibbling.
If I were to put money into National Savings - as they want me to -
how can i know I will get it back again without means-testing?
xxxxxxxxxxx cs
nb see Jerff Randall’s description of Ms Cooper’s
‘performance ,,,separately.
=========================
TELEGRAPH 16.1.09
Equitable Life:
1. Policyholders win Government apology and compensation
Equitable Life policyholders have won a Government apology and an
offer of partial compensation for the "injustices" they have suffered
over the collapse of the insurer.
By James Kirkup, Political Correspondent
Yvette Cooper, the Chief Secretary to the Treasury, told MPs that the
Government accepts that regulators and other public bodies failed in
their oversight of Equitable Life, which collapsed in 2000.
"In some cases, this may have led to injustices for policyholders,"
she said. "I wish to apologise to policyholders on behalf of the
public bodies and successive governments for the maladministration we
believe to have taken place."
Miss Cooper's apology follows months of pressure on ministers over
Equitable.
Ann Abraham, the Parliamentary Ombudsman, last July ruled that the
collapse of Equitable Life followed a "decade of regulatory failure"
by ministers and officials.
Her inquiry said that the public had been misled and that the
Government should apologise and pay compensation to all the
policyholders of the insurer.
More than 1 million people were affected by the firm's collapse many
of them losing tens of thousands of pounds. Some estimates suggest
that full compensation would cost the Government £4.5 billion.
Miss Cooper said that it was impossible to calculate exactly how to
compensate all policyholders, and said that doing so would set an
undesirable precedent.
Therefore she said that universal compensation will not be paid.
Instead, the Government will make "ex gratia payments to those who
have been disproportionately affected."
An independent tribunal will be set up to identify those
policyholders and award them compensation, she said.
Equitable campaigners say 15 victims of the collapse are dying every
day without receiving what they may be owed.
Acknowledging that, Miss Cooper promised that the payments will be
made "as quickly as possible".
Before Miss Cooper's statement, ministers had repeatedly refused to
say if the Government will pay compensation. Opposition parties have
said the Government must pay compensation and the Tories have pledged
to do so if elected.
===================AND----> 2.Equitable Life: a long and sorry tale
of government delay
By Richard Fletcher
Bad numbers take longer to add up than good ones, so it should come
as no surprise that the long-awaited Government statement on
Equitable Life should prove such a desperate disappointment.
It is more than a decade since Britain's oldest life company ran into
trouble – and five years since the start of a series of damning
official reports into this scandal, including two from Ann Abraham,
Parliamentary Ombudsman.
But Yvette Cooper, chief secretary to the Treasury, had nothing more
to offer the victims yesterday than warm words and more delay.
Never mind that an estimated 30,000 of them have died since this over-
promised fund pulled down the shutters and closed to new business in
2000.
Equitable had about 1.5m policyholders when it hit the rocks and
about 500,000 remain onboard today.
The fact so many are still paying premiums could be described as a
triumph of hope over experience – and some may be tempted to believe
the minister's apology could turn into cash one day. Sadly, it won't
be any day soon.
None of Equitable's without-profits policyholders will get a penny
compensation this year – and Ms Cooper added that the Government may
not even hit the two-and-a-half year target for payouts set by Ms
Abraham.
To add insult to injury, the Treasury Minister studiously avoided the
'c' word – preferring to talk of "an ex-gratia payment scheme" rather
than compensation.
Worse still, she repeatedly insisted that payments will only be made
to those whose loss has been "disproportionate".
Nobody can be quite certain what this means – other than another
beanfeast for the lawyers and further delay.
But Equitable's policyholders will not be the only losers in this
long-running saga.
The savings ratio has collapsed to a twentieth of its level in 1997,
when more than 10pc of household income was set aside for the future.
This shameful scandal will deter many others from saving and investing.
Perhaps we should expect nothing more from a Government that believes
it can borrow its way out of the debt crisis.
Perhaps it hopes more victims will die before it is forced to
compensate them.
===================AND---->
3. Equitable Life: Policyholders may not receive a penny for years
The Government's response has failed to end the Equitable Life saga
and left a million policyholders in limbo.
By Paul Farrow
Equitable Life policyholders are unlikely to see any compensation for
up to three years, while tens of thousands may never receive a penny.
The Parliamentary Ombudsman's report recommended that a payment
scheme should be completed two and a half years after a decision to
pay out. But the scheme will make only ex-gratia payments to those
"disproportionally affected".
The Parliamentary Select Committee has said previously that it could
not assess whether that time frame was viable and the Government said
in its statement that its initial assessment was that its proposals
might take significantly longer than that to implement fully.
It added that it believed it was important to set up a scheme that
could pay out as swiftly as possible, taking account of the difficult
practical problems involved. It also said that efforts would be made
to make interim payments.
But the statement cut little ice with policyholders, campaigners and
MPs, who lambasted the Government's response as spin. They said
policyholders still did not know whether they would get compensation,
when they would get it and how much it would be.
Ros Altmann, the pension campaigner, said: "The Government's response
is more spin than substance. It has played an intelligent game and
there is little chance of a judicial review. As the Ombudsman asked,
it has apologised and it has set up a scheme to give payouts as
swiftly as possible. But 'as swiftly as possible' in Government speak
means years, rather than weeks or months.
"The apology means little – but it seems to suggest that they will
pay as little as they can to as few as they can. What's worse is that
policyholders still do not know when they will get any money, if they
will get any money and how much. The saga is far from over, this is
merely another chapter."
Vince Cable, the Liberal Democrats' shadow chancellor, said: "MPs
from all parties are fearful that any payments may take years to
arrive, be means-tested and become bogged down in complicated
bureaucracy."
Politicians on all sides also expressed dissatisfaction and disquiet
at the statement from Yvette Cooper, the treasury minister, outlining
the Government's plans to compensate members of Equitable Life.
Paul Weir, a former Equitable member who was encouraged to invest
with the company shortly before it collapsed, said: "We have been
sold down the river again. This isn't compensation, it is charity to
keep the most badly hit out of the workhouse. It is an insult."
The investors are furious that the Government has rejected the
recommendation of the Parliamentary Ombudsman, Ann Abraham, that it
should set up an independent tribunal to assess individual claims for
compensation, after she found the Government guilty of
maladministration.
Instead, the Treasury has asked Sir John Chadwick, a former Lord
Justice of the Court of Appeal, to advise it on how compensation
could be made, subject to a very restrictive brief given to him by
ministers.
They’ve kicked the whole issue of compensation for those tricked out
of their savings by government incompetence into the long grass.
30,000 of them have died already waiting and another 15 die every
day, it is said.
Read the immediate report of Yvette Cooper’s bvland promiuse of
nothing much below. But even so the report makes clear that -
despite the Ombuds man’s ruling - the government will not give
compensation at all but will make “ex-gratia” payments (perhaps) to
those who are deemed most deserving.
That is another way of saying that any payments made will be means-
tested.
There should be no such quibbles. Those who have had their money
stolen as a result of proven government mismanagerment should get it
back in full. The government is chucking our money around like
confetti. HERE they a clear duty. All of us are dishonoured by
their quibbling.
If I were to put money into National Savings - as they want me to -
how can i know I will get it back again without means-testing?
xxxxxxxxxxx cs
nb see Jerff Randall’s description of Ms Cooper’s
‘performance ,,,separately.
=========================
TELEGRAPH 16.1.09
Equitable Life:
1. Policyholders win Government apology and compensation
Equitable Life policyholders have won a Government apology and an
offer of partial compensation for the "injustices" they have suffered
over the collapse of the insurer.
By James Kirkup, Political Correspondent
Yvette Cooper, the Chief Secretary to the Treasury, told MPs that the
Government accepts that regulators and other public bodies failed in
their oversight of Equitable Life, which collapsed in 2000.
"In some cases, this may have led to injustices for policyholders,"
she said. "I wish to apologise to policyholders on behalf of the
public bodies and successive governments for the maladministration we
believe to have taken place."
Miss Cooper's apology follows months of pressure on ministers over
Equitable.
Ann Abraham, the Parliamentary Ombudsman, last July ruled that the
collapse of Equitable Life followed a "decade of regulatory failure"
by ministers and officials.
Her inquiry said that the public had been misled and that the
Government should apologise and pay compensation to all the
policyholders of the insurer.
More than 1 million people were affected by the firm's collapse many
of them losing tens of thousands of pounds. Some estimates suggest
that full compensation would cost the Government £4.5 billion.
Miss Cooper said that it was impossible to calculate exactly how to
compensate all policyholders, and said that doing so would set an
undesirable precedent.
Therefore she said that universal compensation will not be paid.
Instead, the Government will make "ex gratia payments to those who
have been disproportionately affected."
An independent tribunal will be set up to identify those
policyholders and award them compensation, she said.
Equitable campaigners say 15 victims of the collapse are dying every
day without receiving what they may be owed.
Acknowledging that, Miss Cooper promised that the payments will be
made "as quickly as possible".
Before Miss Cooper's statement, ministers had repeatedly refused to
say if the Government will pay compensation. Opposition parties have
said the Government must pay compensation and the Tories have pledged
to do so if elected.
===================AND----> 2.Equitable Life: a long and sorry tale
of government delay
By Richard Fletcher
Bad numbers take longer to add up than good ones, so it should come
as no surprise that the long-awaited Government statement on
Equitable Life should prove such a desperate disappointment.
It is more than a decade since Britain's oldest life company ran into
trouble – and five years since the start of a series of damning
official reports into this scandal, including two from Ann Abraham,
Parliamentary Ombudsman.
But Yvette Cooper, chief secretary to the Treasury, had nothing more
to offer the victims yesterday than warm words and more delay.
Never mind that an estimated 30,000 of them have died since this over-
promised fund pulled down the shutters and closed to new business in
2000.
Equitable had about 1.5m policyholders when it hit the rocks and
about 500,000 remain onboard today.
The fact so many are still paying premiums could be described as a
triumph of hope over experience – and some may be tempted to believe
the minister's apology could turn into cash one day. Sadly, it won't
be any day soon.
None of Equitable's without-profits policyholders will get a penny
compensation this year – and Ms Cooper added that the Government may
not even hit the two-and-a-half year target for payouts set by Ms
Abraham.
To add insult to injury, the Treasury Minister studiously avoided the
'c' word – preferring to talk of "an ex-gratia payment scheme" rather
than compensation.
Worse still, she repeatedly insisted that payments will only be made
to those whose loss has been "disproportionate".
Nobody can be quite certain what this means – other than another
beanfeast for the lawyers and further delay.
But Equitable's policyholders will not be the only losers in this
long-running saga.
The savings ratio has collapsed to a twentieth of its level in 1997,
when more than 10pc of household income was set aside for the future.
This shameful scandal will deter many others from saving and investing.
Perhaps we should expect nothing more from a Government that believes
it can borrow its way out of the debt crisis.
Perhaps it hopes more victims will die before it is forced to
compensate them.
===================AND---->
3. Equitable Life: Policyholders may not receive a penny for years
The Government's response has failed to end the Equitable Life saga
and left a million policyholders in limbo.
By Paul Farrow
Equitable Life policyholders are unlikely to see any compensation for
up to three years, while tens of thousands may never receive a penny.
The Parliamentary Ombudsman's report recommended that a payment
scheme should be completed two and a half years after a decision to
pay out. But the scheme will make only ex-gratia payments to those
"disproportionally affected".
The Parliamentary Select Committee has said previously that it could
not assess whether that time frame was viable and the Government said
in its statement that its initial assessment was that its proposals
might take significantly longer than that to implement fully.
It added that it believed it was important to set up a scheme that
could pay out as swiftly as possible, taking account of the difficult
practical problems involved. It also said that efforts would be made
to make interim payments.
But the statement cut little ice with policyholders, campaigners and
MPs, who lambasted the Government's response as spin. They said
policyholders still did not know whether they would get compensation,
when they would get it and how much it would be.
Ros Altmann, the pension campaigner, said: "The Government's response
is more spin than substance. It has played an intelligent game and
there is little chance of a judicial review. As the Ombudsman asked,
it has apologised and it has set up a scheme to give payouts as
swiftly as possible. But 'as swiftly as possible' in Government speak
means years, rather than weeks or months.
"The apology means little – but it seems to suggest that they will
pay as little as they can to as few as they can. What's worse is that
policyholders still do not know when they will get any money, if they
will get any money and how much. The saga is far from over, this is
merely another chapter."
Vince Cable, the Liberal Democrats' shadow chancellor, said: "MPs
from all parties are fearful that any payments may take years to
arrive, be means-tested and become bogged down in complicated
bureaucracy."
Politicians on all sides also expressed dissatisfaction and disquiet
at the statement from Yvette Cooper, the treasury minister, outlining
the Government's plans to compensate members of Equitable Life.
Paul Weir, a former Equitable member who was encouraged to invest
with the company shortly before it collapsed, said: "We have been
sold down the river again. This isn't compensation, it is charity to
keep the most badly hit out of the workhouse. It is an insult."
The investors are furious that the Government has rejected the
recommendation of the Parliamentary Ombudsman, Ann Abraham, that it
should set up an independent tribunal to assess individual claims for
compensation, after she found the Government guilty of
maladministration.
Instead, the Treasury has asked Sir John Chadwick, a former Lord
Justice of the Court of Appeal, to advise it on how compensation
could be made, subject to a very restrictive brief given to him by
ministers.
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