Queen's Speech: Bill to compensate Eq Life policyholders

The Queen today confirmed the coalition government would seek "fair" payouts for more than one million Equitable Life members.

The Treasury will be granted new powers to make compensation payments to policyholders through the Equitable Life Bill.

Savers lost money as a result of the pension company's near-collapse in 2000 and have been fighting for compensation payments ever since.

The government had previously promised to cover policyholders' "relative loss".

Speaking in the House of Lords this morning, the Queen outlined the new government's plans for the next 18 months.

The Equitable Life Bill was one of 21 Bills leaked to two Sunday newspapers at the weekend, but the Queen outlined 22 Bills in total, plus one draft Bill.

The future of the FSA remains unclear although the government will press ahead with plans to put "macro-prudential" regulation back in the hands of the Bank of England.

Under the proposed Financial Reform Bill, the tripartite regulation system introduced by Labour in 1997 will be abolished.

That system shared responsibility between the Bank of England, the FSA and the Treasury.

There was no mention of a tax on banks' profits.