Nuneaton MP Marcus Jones has welcomed the announcement of the Financial Secretary to the Treasure, Sajid Javid, that people who had pensions with Equitable Life, are to receive their compensation before Christmas.

The Government announced during the Budget in March 2013 that it would make ex-gratia payments of £5,000 to Equitable Life policyholders who bought their annuity before 1992, with £10,000 pledged to those pensioners in receipt of Pension Credits.

The Equitable Life Payments Scheme was set up by the coalition in 2011 to pay up to £1.5 billion to victims of the Equitable Life scandal, and £600 million has already been paid out. But many people have moved without giving their new address and an alarming number seem to be unaware that they are entitled to a payment. The Treasury is planning to shut down the scheme in 2015, with many pensioners at risk of remaining unpaid.

Commenting, Marcus said: “It is worth noting that there is no legal obligation for the Government to make either of these payments but it is absolutely the right thing to do. I have stated before that I am proud that the Conservatives in Government set aside £1.5 billion to help so many of my constituents who had been let down when Equitable Life failed.

“It took nearly a decade for the last Labour Government to own up to their responsibilities. We acted immediately. This will make a huge difference to the many older people who were affected in Nuneaton.

“Whilst it has not been a perfect solution for all policyholders, I am pleased that the Government has been committed to supporting the victims worst affected by this scandal, which has badly affected many people’s retirement income and undermined people’s confidence in saving. It is particularly pleasing that for many people they will be receiving their compensation payment by Christmas this year.”