Financial secretary Mark Hoban is to unveil the details of how the government will make payments to Equitable Life policyholders.

The government scheme will aim to start making payments by the middle of the year, making the first payments by the end of June.

Hoban said the scheme was complex but had been designed with 'fairness, transparency and simplicity' in mind.

He said, 'When payments start in the middle of this year it will be a huge milestone for the policyholders, who have waited so many years for the resolution of this matter.'

Policyholders will be contacted by the scheme to provide further information.

The scheme reflects previous announcements that With-Profits Annuity policyholders will have their losses covered in full and tax-free.

Last year, the government announced £1.5 billion would be made available for the scheme.