David Tredinnick, MP for Bosworth, welcomes the government’s admission of regulatory failings in the Equitable Life fiasco and its decision to compensation the victims. However he is extremely concerned that the government has torn up the Ombudsman’s timetable for compensation. Having already waited years as a result of the government’s attempt to block compensation, there is still no guarantee as to when policyholders will receive any payments.

He is also surprised to learn that in drawing up the terms of reference for Sir John Chadwick, the senior judge, who will draw up the compensation scheme, the government has suggested that payments should be means tested. Compensation is not a matter of charity but of justice to redress the wrongs done to policyholders.

Mr Tredinnick said, “We need a speedy conclusion to this fiasco. I hope Sir John will produce his proposals quickly, so that payments can be made.”