A report calling for a compensation fund for policyholders in Equitable Life promised by the government has been delayed.

Following the near collapse of the life insurance company in 2000 over one million policyholders were left with reduced retirement savings.

But despite the government’s promise to respond to an official report on the issue by the Parliamentary Ombudsman in the autumn, it said today no statement would be made before Christmas.

Reports said Treasury Minister Ian Pearson had promised MPs earlier in the week that a statement would be made in the Commons next week.

However, Leader of the Commons Harriet Harman confirmed that there would be no statement until Parliament returned from Christmas break on Monday January 12.

The insurance firm ran into trouble after a court decision insisted that it should honour financial promises it said it could not afford.

Opposition MPs have put government under pressure to make a statement and ministers previously said they needed more time to consider a voluminous report made after four years of investigation by Parliamentary Ombudsman Ann Abraham.