Equitable Life avengers backed over compensation bid

MPs yesterday called for Equitable Life policyholders to be paid the £2.8bn balance owed to them by the Government.

A debate in the Commons led to all-party support for a motion calling on the Government to ensure full compensation for victims during the next parliament.

Hundreds of thousands of policies were hit when the mutual insurer almost collapsed at the turn of the century, following a promise of guaranteed annuities that it had no realistic chance of fulfilling. The House of Lords ruled that Equitable had to honour the guarantee, but it could not afford to do so and was forced to close its doors to new business in 2001.

Policyholders, including The Avengers actress Honor Blackman, have waged a decade-long battle to win compensation.