Written question asked by Harry Cohen (Labour) on Wednesday, 1 November 2000, in the House of Commons. It was due for an answer on Thursday, 9 November 2000. It was answered by Melanie Johnson (Labour) on Thursday, 9 November 2000 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what is his latest estimate of (a) how many endowment policies sold on the basis that they would on completion pay off home loans will now not do so and (b) the total shortfall; what steps he is taking to address this issue; and if he will make a statement. - Inc figures and fact that the total value of the policies in force and projected shortfall, are not held centrally.

Answer: Mr. Cohen: To ask the Chancellor of the Exchequer what is his latest estimate of (a) how many endowment policies sold on the basis that they would on completion pay off home loans will now not do so and (b) the total shortfall; what steps he is taking to address this issue; and if he will make a statement. [136973] Miss Melanie Johnson: The selling and marketing of endowment policies is regulated by the Financial Services Authority (FSA). In a progress report published on 3 October, the FSA estimated that some 60 per cent. of the 11 million endowment policies in force might not meet their targets. The total value of the policies in force, and the projected shortfall, are not held centrally.

Secondary information