October 20, 2010 12:00 AM

Jenny Willott, the Liberal Democrat MP for Cardiff Central, has today welcomed the announcement that Government the will meet its pledge to help victims of the Equitable Life scandal.

As part of the Comprehensive Spending Review, the Government rejected the recommendation on Equitable Life payments made by Sir John Chadwick and announced that it will implement a much more generous settlement.

In total £1.5 billion will be spent compensating those affected by the collapse of Equitable Life, including covering the cost of the total relative lost suffered by policy holders With Profits Annuities, who were hardest hit by the scandal.

Commenting on the decision, Ms Willott said:

"During the Election the Liberal Democrats pledged to compensate Equitable Life victims. I am very pleased that today we have taken the first step in fulfilling that pledge.

"I am particularly pleased that the Government rejected the scheme proposed by Sir John Chadwick which dramatically underestimated the compensation to which policy holders were entitled. In total the programme announced by the Government today will be four times more generous than the Chadwick recommendations.

"Equitable policy holders have been waiting for a long time for compensation and I am very pleased that a Government with the Lib Dems at its heart have finally delivered the justice that policy holders deserve."

What would you like to do next?