The new Chancellor of the Exchequer has been urged to intervene and ensure full compensation for victims of the collapse of Safe Hands Funeral Plans, after it emerged that concerns first brought about five years ago about the running of the company were not acted upon by the Treasury.
In a letter to the new Chancellor, Kwasi Kwarteng MP, Dundee West MP Chris Law raised his own constituents’ plight following the collapse and urged him to intervene and commit to full compensation for those affected.
It is estimated that 45,000 people across the United Kingdom were affected by the collapse, and customers have now been told that there will be compensation and to expect no more than 20% of their own money back.
Fairer Finance, Dignity, and the Funeral Planning Authority all raised concerns in 2017 with the Financial Conduct Authority and the Treasury that Safe Hands was not following the Regulated Activities Order and should have been subject to FCA regulation. Despite this, no action was taken at the time.
Mr Law said:
“My constituents paid for their funerals in advance so that they could have a dignified funeral and know that the cost and burden would not fall onto their families.
“Despite assurances that the money they put forward would be held in a trust and protected, they now hear that they will receive no compensation and to expect no more than 20% of their money back. What was meant to be a dignified process has now turned into a farce.
“It is now clear that, by failing to act when concerns were first raised in 2017, the Treasury and the FCA have failed my constituents and the thousands of other people across the country affected.
“In the middle of a cost-of-living crisis, people should not lose out on thousands of pounds of their own money due to the failures of Government to protect them.
“The new Chancellor must intervene and do what his predecessor failed to do – right this wrong and ensure that those affected are properly compensated.”
Chris Law 