Around 10,000 victims of the Equitable Life scandal will receive a £5,000 compensation payment a year early, the Government has announced.

Chancellor George Osborne said in this year's Budget that the Government will make pay a single ''ex gratia'' flat-rate lump sum of £5,000 to people who were shut out of the main compensation scheme because they bought their annuities before a cut-off point in 1992. The payments were expected to be made in the next financial year, or earlier if possible, and the Government today announced they will be made during this financial year (2013/14). Between 10,000 and 11,000 policyholders are in line for a payment and letters to those who are eligible will be sent out this week. Policyholders who meet the criteria and receive pension credit when the payments are made will receive an extra £5,000....Read more here