Solicitors welcome Equitable Life move to pay on annuities

Two solicitors acting for former policy holders of Equitable Life pensions have welcomed indications that the company is prepared to pay an estimated 40-75 million compensation between those who have lost out as a result of guaranteed annuity rate (GAR) costs.

Equitable estimates that this could affect some 70,000 former customers.

Irwin Mitchell senior partner Michael Napier said the announcement was good news, but 'would be followed by bad news if individual claimants had to prove policy mis-selling, as this would render the scheme unworkable.

We hope this will not be the case.'

Stephen Alexander, a partner at London firm Class Law, said: 'We are pleased because Equitable Life has moved from public statements saying that they will pay no compensation to saying that they are prepared to pay something'.

Paula Rohan