The Treasury has spent more than £2.6m on administering the Equitable Life payments scheme (ELPS) in the three months to November, government figures have shown.
Treasury expenses data for November last year (£25,000+) revealed that operational costs of the scheme in August and September alone cost the government £2.2m, while it spend £350,000 on 'implementation' in August.
It spent a further £136,000 on actuarial support from Towers Watson in respect of the scheme in the months September and October.
The Treasury said the figures were in line with expected operational costs for the scheme, as the total administration budget was set at £57m by the National Audit Office (NAO) in April last year.
However, it admitted that the budget may need to be reset due to the 12-month extension of the scheme to 2015, announced in October last year.
The scheme, which was set up by the government to compensate investors who suffered losses as a result of the maladministration of Equitable Life, was criticised by the NAO last year for suffering severe delays.
The NAO alleged that the scheme had spent 72% of its original administration budget on only 35% of cases.
But by August last year the scheme's performance had improved, according to a progress report, which showed it had paid out a total of £734m to more than half a million policyholders at a rate of £1m a day.
The government announced in October that it had put aside a total of £1.5bn to be paid to policyholders through the scheme and said that it would extend the scheme after it had faced difficulties with tracing down eligible claimants.
The government also implemented an advertising campaign to entice policyholders to come forward.
The ELPS only covers policies issued after 1 September 1992 and holders of older policies should have received a letter from the Treasury outlining how they will be compensated, as announced in the 2013 Budget.
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