Equitable Life victims to receive £1.5 billion compensation

The victims of the Equitable Life collapse are to receive £1.5 billion in compensation ten years after the insurer came close to insolvency - three times more than the amount recommended by a government report. Up to one million policyholders were affected by the collapse with many experiencing a significant cut in their pension and annuity pay outs. Figures revealed that the amount lost totalled almost £5 billion. However, a report led by Sir John Chadwick earlier this year suggested that the victims should receive between £400 million to £500 million in compensation leading to uproar amongst campaigners and social groups. Nevertheless the new compensation figure has still left many dissatisfied with the result.

Equitable Life victims may receive £250 each in compensation for loss of retirement savings

Victims of the Equitable Life collapse are furious after the government announced they may receive as little as £250 each in compensation. This follows recommendations made by the Sir John Chadwick Report released this week. Almost 1.5 million policy holders invested their retirement savings into pension plans with the firm but the minimum payment guarantees they were promised could not be met - the changes in interest rates and inflation during the 1990s made the annuity returns too expensive to pay out.