Equitable Life Victims Latest to be hit with UK Austerity Cuts
There has been much news coverage surrounding the cuts to public pensions and changes to retirement ages as part of austerity measures following the financial crisis however some pensioners are to be hit by the cuts in another way
A decade after Equitable Life came to the bring of ruin (2000) on Monday a UK Treasury document revealed said that £1.5billion will be paid in total to 945,000 victims despite admitting that losses suffered were closer to £4.3billion, but it says it is paying a lesser sum due to “pressures on the public purse”
More than 30,000 have already died without receiving a penny.
The Treasury document revealed that 37,000 pensioners will have part of their payments spread out over five years, dashing hopes they were in line for a lump-sum cheque this summer and raising concerns some may die before they receive the full amount.
The first payments are due to be made by the end of next month, and £1billion will be handed out over the next three years. But according to The Daily Mail campaigners say 10,000 of the oldest surviving pensioners have been ‘callously excluded from compensation’ and will receive nothing at all.
A million victims will remain in the dark on what they will receive for up to a year because the Treasury is sending out letters explaining the awards over a 12 month period. Some will not receive any payments until 2014.