Equitable Life payout amount to be revealed

The amount of compensation the government can afford to pay to policyholders who lost money in Equitable Life will be revealed in next month's spending review.

Treasury Financial Secretary Mark Hoban said the government was committed to "transparency and openness" in how those who lost out were paid. But he appeared to rule out staged payments, stressing the "impact on the public purse".

Mr Hoban was speaking during second reading of the Equitable Life (Payments) Bill, which allows for the compensation scheme for 1.5 million policyholders who lost out when Equitable Life was brought to its knees in 2000. Equitable lost a legal battle in the Lords over the rights of policyholders, forcing it to close to new business.

Two years ago the Parliamentary Ombudsman called for policyholders to get redress after finding instances of maladministration by regulators and officials in the period leading up to December 2001.