Equitable Life Payment Scheme update
The Equitable Life Payment Scheme (ELPS) was set up by the government following the almost total collapse of the insurer Equitable Life some 15 years ago. The ELPS was launched in October 2010 to make compensatory payments to certain classes of policy holders. The payments were based on ‘relative loss’ calculations. The ELPS scheme was due to close in April 2014 but will now run until at least mid-2015 in order to give eligible policyholders time to make a claim.
The government has now issued payments to over 887,000 eligible policy holders out of a pool of 1 million. It is thought that many of the remaining policy holders are no longer alive. However, the government remains committed to using extensive electronic tracing methods as well as writing to policyholders’ last known address, working with other government departments and liaising with group scheme trustees to locate any further eligible policy holders.
Economic Secretary to the Treasury, Andrea Leadsom said:
‘I am pleased with the progress the Equitable Life Payment Scheme is making and am proud that the government is tackling the legacy of Equitable Life, helping over 887,000 Equitable Life policy holders with over £990.5 million worth of payments.’