News story

Equitable Life Payments Scheme payments pass £970 million

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The government’s Equitable Life Payments Scheme (ELPS) has now issued £973 million worth of payments.

Since April 2014, the scheme has issued payments to a further 17,000 policy holders, meaning that over 877,000 (out of 1 million) eligible policyholders have now had payments issued to them.

The figures are broken down as follows:

  • 407,141 payments to individual investors have been issued totalling £547.6 million
  • 37,379 initial payments to With-Profits Annuitants (WPAs) or their estates have been issued by the scheme, totalling £81 million. Subsequent annual payments totalling £183 million have also been issued
  • 432,894 payments totalling £161 million have been issued to those who bought their policy through their company pension scheme

In October 2013, the government announced that the ELPS would be extended, to make sure that as many Equitable Life policy holders as possible receive the payment they are due for the injustice they suffered. The scheme had previously been due to close in April 2014.

The scheme remains committed to tracing and paying as many eligible policyholders as possible and will consider all proportionate actions it can take to do this, in addition to the significant efforts that have already been made including extensive electronic tracing methods as well as writing to policyholders’ last known address, working with other government departments and liaising with group scheme trustees.

The government has also provided separate financial support to around 9,000 individuals who have With-Profits Annuities from the Equitable Life Assurance Society which began before 1 September 1992. Payments of £5,000, totalling approximately £46.8 million, were made to this group in December 2013 with the assistance of the Prudential Assurance Society.

Economic Secretary to the Treasury, Andrea Leadsom said:

I am pleased with the progress the Equitable Life Payment Scheme is making and am proud that the government is tackling the legacy of Equitable Life, helping over 877,000 Equitable Life policy holders with over £970 million worth of payments.