First Eq Life cheques hit doormats today

The first of the Equitable Life compensation payments will be sent out today.

These payments form the first wave of a £1.5bn compensation programme, announced during the 2010 Spending Review, to be delivered over the next three years.

In May, financial secretary to the Treasury Mark Hoban promised the government would begin payments to Equitable Life victims by the end of June.

Hoban said the payments follow "a decade of delay and indecision" on the issue.

However, Paul Braithwaite, general secretary of the Equitable Members Action Group (EMAG), said the group is still dissatisfied.

"Those deemed to receive 100% of their relative loss will get a terrible shock because their compensation will come in five yearly instalments with no interest when they were expecting one cheque within the next few weeks," said Braithwaite.

He added the fight will go on for the 10,000 Equitable investors who bought with-profits annuities before September 1992 and so do not qualify for any compensation.

"Some of these people, who are the oldest and frailest, still do not know they are not eligible and will not even receive a letter yet telling them so," Braithwaite said.

He said EMAG has a meeting with an all-party group of MPs to discuss this cohort of victims, but it may have to be postponed due to a lack of time and space as Parliament nears recess.

Click here for a guide to how the Equitable Life payments scheme works.