The verdict is stark and damning. A substantial and compelling independent report published this week says that government bodies failed for years in their regulation of Equitable Life. The life assurer almost collapsed eight years ago, leaving more than 1m policyholders with losses. The proper penalty for that failure is less clear-cut.

Ann Abraham, the parliamentary ombudsman and the report’s author, says the government should apologise and set up a compensation fund for policyholders. The group campaigning for policyholders claims losses could be £4bn.