UK taxpayers 'received $6bn in bank bailout payback last year'

26 March 2013

British taxpayers received £4 billion ($6 billion) in repayment last year for two of the banking bailouts they funded at the height of the global economic crisis.

UK Asset Resolution (UKAR) - the state-owned body responsible for the winding down of the failed mortgage books of Northern Rock and Bradford & Bingley - revealed yesterday (25 March) it had increased reimbursements to the Treasury by £1.2 billion in 2012.

The organisation - which was established in October 2010 to manage the loan books of these companies following their failures - noted that the proportion of home loans three or four months in arrears declined by 23 per cent throughout the 12-month period.

However, it had to set aside an additional £130 million in compensation Northern Rock customers who had been mis-sold payment protection insurance.

Nevertheless, UKAR chairman Richard Pym said the debt to the Treasury has fallen from £48.7 billion to £43.4 billion in the 2.5 years since the body was set up.

By Claire Archer

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