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Equitable Life (Payments) Bill

That is clearly where our moral duty arises. If policyholders are trapped and cannot adjust their position, they are unable to rectify the damage that has been done. I want to speak briefly to amendment 7. The Government have accepted that £4.26 billion should be the full amount available to policyholders, 37,000 of whom will receive 100% compensation. That clearly involves a huge amount of money, which will come out of the £1.5 billion. The policyholders who are not trapped annuitants would therefore get something like 15% of the compensation due to them, which seems pretty unfair and unreasonable. We should set up a commission to devise a payment scheme, then look at the results. Instead, £1.5 billion has now been set aside, and an independent commission will set up the mechanism for distributing that money. That could have very serious consequences indeed. Parliament has a problem in this regard. I applaud the Government for moving swiftly to settle this matter once and for all, but we are setting up a method for distributing the money and creating expectations out there. About 1.4 million policyholders have been affected by the scandal, and 37,000 will receive full compensation while 10,000 will not get a penny. That leaves rather a lot of policyholders among whom to divide a relatively small amount of money. When the Minister responds to the debate, I trust that he will be able to set out how the calculations were made, so that we can be clear about them. Amendment 7 would allow us to review the position in five years' time, when the economy has recovered and the benefits of this Government are clear for all to see, and to top up the compensation further for those people who will be retiring in five, 10, 15 or 25 years' time. We also have a moral duty to honour our pledge to those people. This is one of those cases in which we have set out to do something in the proper way, and I applaud those on the Treasury Bench for moving swiftly to bring the matter to a conclusion so that payments can be made as soon as possible, but we must ensure that we fulfil our moral duty to those policyholders.