The government has confirmed that it will make ex-gratia payments by next week to those Equitable Life With-Profits policy holders who are excluded from the wider scheme because their annuity began before 1st September 1992.
First announced by the Chancellor at the 2013 Budget, the government finalised legislation in November and has worked closely with the Prudential Assurance Society to allow the payments to be made before the end of the year, well in advance of the original timetable of April 2014.
Speaking in the House of Commons today, Financial Secretary to the Treasury, Sajid Javid confirmed that over 9000 people will receive lump sum payments of £5000. A further 450 in receipt of Pension Credit will receive an additional £5,000.
Financial Secretary to the Treasury, Sajid Javid, said:
In many cases the pre-1992 policy holders, the vast majority of who are very elderly, are facing financial hardship having received less than they expected from their Equitable Life policy.
Having announced that we would make ex-gratia payments to this deserving group in the Budget, we have pulled out all the stops to make this happen. I am delighted that we are going to be able to make them next week, before Christmas.