The coalition government will tackle Equitable Life compensation payments in the first session of parliament, a Treasury minister has said.
Writing in the Telegraph over the weekend, Financial Secretary to the Treasury Mark Hoban confirms that a bill will be introduced before parliament rises for the summer recess to allow "fair and transparent" payments to more than one million policy holders who lost money as a result of the pension company's financial problems.
The short time line shows the government's commitment to deliver on the Parliamentary Ombudsman's recommendations made two years ago, Mr Hoban says.
The measure to establish an independent payments scheme was one of 22 bills announced in the Queen's Speech.
It will compensate victims for their "relative loss as a consequence of regulatory failure" says Mr Hoban.
Equitable Life closed to new business in 2000 and came close to collapse after failing to put sufficient funds aside to pay for guaranteed payouts it had promised on pension policies.
About one million people saw their retirement savings slashed as a result of the company's struggle to stay solvent.
Policyholders have been fighting for a decade to win compensation for claims that in total add up to at least £4.7bn, but there fears remain that the final payout bill will fall far short of that figure.
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