Nine years after the near collapse of Equitable Life, pensioners and savers are still unsure if they see any compensation despite the long-awaited report by the parliamentary ombudsman, described by commentators as a “damning indictment of UK financial regulation.”

The victims may still be in for a long wait to get their estimated 4 billion pounds in compensation. Prime Minister Gordon Brown earlier this week indicated that he would not allow billions to be paid out automatically and maintained that Equitable Life’s “culpability” in the case had been proved.

Paul Braithwaite, general secretary of the Equitable Members Action Group , declared the publication of the report was “a red letter day for policyholders”.

But will the government cough up? Four billion pounds is a lot of money, which the government may be reluctant to spend when the slowdown in the economy is likely to hit tax revenues.

Equitable chairman Vanni Treves said: “I do not believe any argument that the Government has not got the money to do it. It is the job of the Government to fund it and pay out speedily.” He compared the situation to the government’s response to the crisis at Northern Rock: “It found 20 billion pounds for Northern Rock I think it should find a much smaller sum to compensate for its failings here,” he told Radio 4.

There are precedents for compensation payouts - in 1980 and 1990s, for example, over the Barlow Clowes and Maxwell scandals. More recently, when the ombudsman found maladministration in the regulation of the occupational pensions market, the Government paid out, albeit reluctantly and only after having been taken to court.

The Government keeps telling us that we should save more for retirement. But trust in the system is low and survey after survey finds that people do not save enough for their retirement.

Is the latest installment in the Equitable Life saga yet another nail in the coffin for retirement savings? Do you think regulation ensures that such failings won’t happen again in the future or does the regulator need to do more?