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 because it did not have enough funds.

She gave the government's response on Monday to the investigation by Lord Penrose into the scandal but warned the government would not be underwriting any losses.

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

"The society was the author of its own misfortunes. It is now for the Serious Fraud Office and the DTI to decide whether prosecutions should follow."

Kelly attacked the "dubious practices" by senior figures in the firm who were responsible for a catalogue of concealment and manipulation.

The pensions regulator and even the society's board were not told the full extent of problems.

Deep-seated management problems that began in the 1980s were compounded by a "light-touch" regulator.

Government ministers in the late 1980s and early 1990s failed to take the opportunity to tighten the regulatory framework.

Kelly rejected comparisons with the Barlow Clowes scandal as Equitable Life is still trading and there had been no findings of maladministration.

"The company is still trading. There is a comprehensive compensation scheme in place," she said.

The Conservatives warned that the public could lose faith in the savings industry.

"The implications of this episode are deep and are issues of trust. The issue is rather the trust of the ordinary family and the pension industry which is at the heart of our financial system," said shadow financial secretary Howard Flight.

He also called for an investigation of the government's actuaries department which was criticised as being complacent by Lord Penrose.

Liberal Democrat Treasury spokesman Dr Vince Cable argued policyholders who had lost out should be compensated.

He called for the mandate of Lord Penrose to be extended by three months to consider the issue.

"The minister says that Lord Penrose did not advise compensation," he said.

"Of course he didn't because it wasn't in his remit."