Following publication of the Penrose report, the government has attacked former ministers, financial regulators, the bosses and management of Equitable Life.

Treasury financial secretary Ruth Kelly highlighted a catalogue of failures that led to the mutual society almost failing to meet guarantees on the pensions of thousands of people.

She also warned that the government would not be underwriting any losses.

"We have a responsibility to taxpayers now and in the future," she told the Commons.

The opposition was unimpressed with her statement.

Howard Flight, the shadow Treasury spokesman, said government regulators had failed to properly oversee the affairs of the mutual.

"There can be no doubt that the report provides unambiguous and compelling evidence of regulatory failure at the operational level," he said.

Vincent Cable, the Liberal Democrat Treasury spokesman, branded Kelly’s analysis of the report  "a total whitewash".