Equitable Life (Payments) Bill

I take the same view as the right hon. Member for Belfast North (Mr Dodds) on the responsibility of Ministers. Civil servants provide advice but Ministers decide and act and we cannot ignore that responsibility. We have taken this matter very seriously and have sought, over the past six months, to drive through a speedy resolution to the problem. I echo the remarks of my hon. Friend the Member for St Albans (Mrs Main) on tackling this matter. On the amendments before us, the purpose of amendment 3 is to make the design and operational mechanism of the scheme ““independent of government””. I understand the need for independence in the design of the payment scheme, which is why I established the Independent Commission on Equitable Life Payments. The commission's advice will necessarily form the basis of the scheme's design. It will advise on how best fairly to allocate payments among policyholders, with the exception of with-profits annuitants, and it will consider which groups, if any, should be prioritised. It is right that that process should be independent, so the scheme will be independently designed. The Government have considered whether the scheme should also be operated independently of the Government, as amendment 3 proposes, and have concluded that that would not be appropriate for three key reasons. First, it would delay the commencement of payments. Our ambition is to start making payments in the middle of next year using our preferred delivery partner National Savings and Investment. I shall say more about that on amendment 6. If amendment 3 were accepted, NS&I, which is an Executive agency of the Treasury, could not be used as the delivery partner as it would not be operating independently of the Treasury, which would therefore have to establish a new, independent body or identify an existing such body that could operate the scheme. It is also likely that legislation would be required to task the independent body with the design and operation of the scheme, which would delay significantly the making of payments to policyholders. Secondly, the Government have established an independent commission to advise on the allocation of payments. This function is independent of the Government and is key in determining a fair allocation of payments. Making the operational delivery provider, whose job is largely about sending out the payments and making sure that cheques get to the people who are entitled to receive them, independent of the Treasury would not add significant value to that task. Finally, it is important to ensure that value for money is considered when deciding on a delivery partner. The Treasury has satisfied itself that NS&I has the capacity and the capability to deliver the scheme, while at the same time providing value for money. The Government consider that by establishing the Independent Commission on Equitable Life Payments on 22 July, we achieved the aim that is at the heart of the amendment. I turn to amendment 4 and what policyholders should do if they consider that they are not being treated fairly under the scheme. The Government are committed to treating policyholders fairly. In line with that, there will certainly be a means by which policyholders can raise concerns about the incorrect application of scheme rules to individual cases. We have given much thought to how best to deal with complaints and have made a great deal of progress in putting together a process that is fair and thorough. Full details of this process will be included in the document that sets out the scheme design in full.