Keighley’s new Conservative MP has welcomed Government proposals to provide compensation for those who lost out when Britain’s oldest life assurance company went bust.

Kris Hopkins said he was pleased Prime Minister David Cameron had followed through on his proposal to set up a payment scheme to compensate Equitable Life policyholders.

The 300-year-old company closed to new business in 2000 after an unsuccessful High Court battle and reduced payments to customers, leaving around one million people out of pocket.

Mr Hopkins said: “I received a steady flow of letters from Equitable Life policyholders throughout my time as the Conservative parliamentary candidate and it was an issue on which I campaigned very hard right up until polling day.

“I had the opportunity to raise the issue with David Cameron personally in Downing Street after the Queen’s Speech, when he gave me a personal assurance that the Equitable Life Bill would go forward as a matter of priority.”

Mr Hopkins conceded that a coalition government with the Liberal Democrats meant that some compromises have had to be made.

However, he welcomed the start of what he believed would be a “particularly radical government agenda”.

“I look forward to playing my full part in helping to shape this legislation as it moves through the House of Commons and, most importantly, to stand up for the interests of local residents in Keighley and Ilkley,” he added.