With three quarters of those insured planning to claim, the numbers continue to grow, according to a recent survey by Gilbert Financial Research. Almost £8bn has already been claimed, about £4bn is awaiting payment, with a probable £2bn yet to be claimed.
2 in 9 adults have taken out a PPI policy, according to the survey* responses. Northern Ireland (38%) and North East (35%) contain the highest densities of insured adults; London (17%), South East (18%) and West Midlands (18%), the lowest.
The average payment already received is around £2,900, excluding any payment to claims management companies, with no observable difference between payments to men and to women.
“PPI payments are reminiscent of the privatisation proceeds of the 1980s and 1990s and are sufficiently large and widespread to influence the seasonal mood. While spending on consumer durables, holidays and cars could account for about a third of the payouts, another third is simply being used to meet everyday expenses. Is this a bank windfall tax in disguise?”
Peter Warburton, director of Economic Perspectives