Chancellor George Osborne has confirmed that Equitable Life victims will get £1.5 billion, with with-profits investors receiving full relative compensation for their losses.
He accused the previous government of “dithering” as the “innocent victims” waged a 10-year campaign for justice.
The payments will begin next year and two-thirds of the money will be paid out over the next five years. (article continues below)
Osborne told MPs he agreed with Parliamentary Ombudsman Ann Abraham’s recommendations for compensation but suggested that this needed to be seen alongside the current economic climate.
With-profits investors will receive the biggest payouts and will be compensated in full for their relative losses.