The government is expected to announce this week it will treble proposed compensation payouts to Equitable Life policyholders to £1.5bn.
Chancellor George Osborne will unveil the revised figure in his Spending Review on Wednesday, the BBC reports.
It is still way below the £4.5bn believed to have been lost by 1.5m savers, according to some estimates. However, it is three times the payout proposed by Sir John Chadwick in his recent report into the debacle.
Many Equitable policyholders are believed to be very unhappy with the proposed payout and the fact it has been leaked ahead of the Review.
Equitable Life would not comment to the BBC while members' groups said they wanted to see the small print of the deal and promised to fight on.
Liz Kwantes of the members' help group said: "We've been waiting for this for 10 years. On the other hand, some people may think this is derisory compared to what we should be getting."
An Equitable Life Bill has now been introduced to Parliament to allow the Treasury to make the compensation payments, which are due to start in the middle of 2011.
Former High Court Judge, Sir John Chadwick was asked by the previous Labour government to devise a much more limited scheme, aimed only at those who had suffered "disproportionately".
His proposals were based on the amount lost because of government maladministration in regulating Equitable.
Sir John said investors' absolute loss should be set at between £2.3bn and £3bn, but compensation should be capped for each policyholder at between 20% and 25% of that.
After further downward adjustments that would have implied a total payout of between £400m and £500m.
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