Hoban promises Eq Life payments by June

Financial secretary to the Treasury Mark Hoban has confirmed the government is on track to begin paying compensation to Equitable Life victims before the end of June.

Hoban pledged in July 2010 the payment scheme would begin by the middle of 2011.

In the October Spending Review, George Osborne said the government would pay a total of £1.5bn in compensation to the victims of Equitable Life's 2000 collapse.

Yesterday Hoban confirmed this will go ahead in response to questions from Labour MP for central Ayrshire Brian Donohoe, who said his constituents had feared payments would be delayed.

"I will be placing a scheme design document before Parliament imminently," Hoban said.

"Policyholders do not need to do anything to claim their payments. Those operating the scheme [National Savings and Investments] will contact them in the first instance.

"A website and call centre will be up and running for the duration of the scheme to guide policyholders and address any queries they may have."

Hoban added payments will be made to with-profits policy holders who annuitised after 1992 over the lifetime of their policy.

Other policyholders who have suffered losses will receive a single compensation payment before 2014, Hoban said, starting with the oldest.