|Equitable Life Payment Scheme - there are 3 reports for this project: 2013, 2014, 2015
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|2015 (data is from September 2014)
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|In May 2010 the Coalition Government pledged to implement the Parliamentary and Health Ombudsmans recommendation to make fair and transparent payments to Equitable Life policy holders, through an independent payment scheme, for their relative loss as a consequence of regulatory failure. The scheme was set up rapidly, so that those who suffered losses as a result of maladministration were able to receive payments as early as possible. As a result the Governments stated ambition for payments to begin by the end of June 2011 was met. Payment volumes started to increase from November 2011, with the scheme moving into full operation during 2012-13. By end Q3 2014/15 (end December 2014) the Scheme had issued payment to the value of c.£998 million to c.893K (86% of total) policyholders.
In October 2013 the Chancellor announced that the Scheme would not close in 2014 but would remain open until 2015 in order to give people the maximum opportunity to claim their payments. The Treasury and the Scheme continue to work closely together to consider the most effective and efficient ways to trace and pay as many as possible of the remaining policyholders due a payment.
The project end date shown is subject to Ministerial decision but is included for administrative purposes.
|The Green RAG status reflects the extension of the Scheme to 2015 and that the number of payment issued by the Scheme at the end of Q3 2014/15 has reached 91% for individual policyholders and 81% of group scheme policyholders and continues to slowly increase.
Building on the success of the advertising and further tracing work begun in Q3 2013/14, work has continued to try to find the remaining c160,000 policyholders unpaid at the end of Q2. Following a successful pilot of the Department for Work and Pensions letter forwarding service, this has been rolled out where the Scheme holds a National Insurance number, date of birth and address. At the end of Q3 2014/15,26,000 letters sent the DWP's bulk letter forwarding service had resulted in 9,318 payments. Success rate monitoring will continue in coming months to ensure cost effectiveness is maintained in future tracing activity.
Progress has been made in reducing the number of the remaining, most difficult to trace, unpaid policyholders despite these efforts. Whilst payments will continue, it is expected that, despite these continuing efforts to trace them, c12.8% of the policyholder population will not be found.
|In October 2013 the Treasury announced the Chancellors decision to extend the timing of the closure of the Scheme to 2015. The emphasis on delivering payments remains unchanged and everything has been done to maintain the momentum to deliver as many payments as possible before the Scheme closes. The Treasury has been working with NS&I to revise the programme milestones in the light of the extension.
|Forecast is within 5%.
The ELPS programme budget is in AME and therefore there are no figures recorded above.
The ELPS programme budget will stay in AME for the duration of the scheme. The original budgeted costs were £57.6m to the projects original close date of 1 July 2014 (i.e. excluding the Scheme extension). A fixed price contract has been negotiated with NS&I for delivery of the Scheme from August 2015 to December 2015, however a the closedown date has not been announced. Treasury is working with NS&I to cost closedown activities with the aim of applying fixed price approach to control costs and achieve value for money.
|Whole Life Cost
|Following the Chancellors decision in October 2013 to extend the timing of the closure of the Scheme to 2015 a change to a fixed price approach to " business as usual" delivery costs during the extension period (from 1 August 2015) has been agreed. Discussions between HMT and NS&I to finalise closedown cost are continuing and will be completed at the end of Q1 2015/16.
| Data not provided by department Data not provided by department Data not provided by department Data not provided by department
Acknowledgement: GMPP data has been re-used under the Open Government Licence.