Treasury summons for pension firms

The heads of the 20 largest pension companies have been called to a meeting with Treasury economic secretary Helen Liddell on Wednesday, at which she will tell them to speed up compensation for the pensions mis-selling scandal or face action.

Of the 600,000 people who were identified as having been wrongly persuaded to switch from their company schemes to less favourable private pensions, only about 7,000 have so far been compensated. A Treasury spokesman said: "Mrs Liddell is making pensions mis-selling her first priority. She is coming from the consumer's point of view and is determined to meet the pension firms and find out how they intend accelerating and improving compensation."

The spokesman added: "A lot have suffered from mis-selling - over half a million people - and a rather paltry number have been sorted out. That is not good enough and something needs to be done."

Although he would not say what sanctions Mrs Liddell had in mind, or what penalties might be imposed, he added: "She is expecting something to happen, and happen quickly."

A spokesman for the Personal Investment Authority said: "We are very anxious that the review is moved forward now with speed - obviously the Government shares that view as well."