Contribution
It is a pleasure to serve under your chairmanship, Ms Furniss. I am grateful to my hon. Friend the Member for Leeds North East (Fabian Hamilton) for securing this debate. For 17 years, he has been limpet-like in this campaign for justice for Equitable Life victims, as have other Members of this House. It is a pleasure to follow the hon. Member for Strangford (Jim Shannon), who asked some very pertinent questions of the Minister, and I look forward to the Minister’s response.
I am sorry once again to have to stand up on behalf of my constituents who have faced a clear injustice over many years. I know at least four constituents who have been impacted, and it is likely that there are many more. I want to touch on a slightly wider theme: the injustice caused by what I can describe only as a series of financial scams and the weak response of successive Governments. This is not just about the Equitable Life scandal. Since I first entered this House in 2015, I have spoken up on the loan charge scandal, the Football Index scandal, the London Capital & Finance scandal, and now the Equitable Life scandal. The common theme of all those scandals is that the victims suffer financial hardship.
One constituent affected by the Equitable Life scandal was estimated to have had over £20,000 taken from him. “Taken” is the key word; it was not lost. That is what campaigners who were fleeced when Football Index collapsed made sure to tell me: “Use the word ‘taken’, not ‘lost’, Ruth.” A wallet is lost behind a sofa; money is taken from a wallet by a crook.
My constituent is not alone. Many people have had money taken from them as a result of this scandal. As other Members said, many are now much older. My constituent is in his 80s, and that is precisely the stage of life when people need money for social care, for their families or simply to enjoy their remaining life. It should be a time when people can relax, but they cannot. In too many cases over the past 30 years, the actions of private companies have led to constituents suffering.
During the Football Index scandal, one of my constituents had £10,000 taken. During the collapse of London Capital & Finance, a constituent had £120,000 taken. In both cases and that of Equitable Life, it is clear that the regulators, which exist to protect our constituents, failed to act.
Why does that matter? First, our constituents end up having money taken from them and their lives turned upside down. Secondly, the Government have to step in and provide financial compensation—taxpayers’ money—but it is too often inadequate and, as my hon. Friend the Member for Leeds North East said, some do not get any money at all. It is right that the Government provided compensation for my constituents and others who suffered as a result of this injustice, but we should not have got there in the first place.
The Equitable Life scandal is a reminder of what happens when regulators fail to act and private companies operate in an underhand manner and get away with it. Over the past decade, too many regulators have become hollowed out and either have failed to act at all or have acted too late. I feel somewhat nervous about even my own party in government talking about doing away with regulators. We sadly need regulators, because there will always be scammers.
It is the Government, taxpayers and ultimately the victims who end up picking up the tab when operators act against the honest aspirations of hard-working people. Far too often in these scandals, the private companies and directors get off scot-free. In many cases, they get to make more money and go on to fleece someone else.
The Equitable Members Action Group continues to campaign on behalf of those affected, and has argued that there needs to be greater transparency from the Treasury about the remaining money that has not been allocated to victims. I hope the Treasury can meet and engage with those campaigning on this injustice. I hope the debate serves as an opportunity for this House to remember the importance of having regulators that are able to act and to act swiftly.