Equitable Life policy holders must have been cracking open the bottles of bubbly last night. Why? Because generous Georgie O had upped their promised payout from £0.5 billion to £1.5 billion – all in the interests of fairness you understand. This decision totally flew in the face of the Chadwick review in July which said that £0.5 billion was quite enough.
You would be right to ask why Equitable Life policy holders are getting a payout at all. Apparently it’s because the collapse of Equitable Life was due to ‘regulatory failure’, and this is a government responsibility. In the circumstances they felt obliged to cough up.
Regulatory failure! What was the banking crisis if it wasn’t regulatory failure? What about all the businesses and individuals that have gone bust because the government failed to regulate the banks properly? Are they going to get compensated? No chance, but why not? Regulatory failure is regulatory failure, is it not?
The decision to compensate Equitable Life policy holders was a silly decision no doubt taken in an effort to appear ‘fair’. I wonder how fair it appears to those seriously ill people in residential care who are no longer going to receive any welfare support? It will save £290 million, but who are the most deserving? Was this even considered? Is this just a case of misplaced compassion or an appallingly callous decision? After all, the seriously ill residents of care homes are unlikely to be voting at the next election.