The Treasury has stressed responsibility lies with the States of Guernsey to support Landsbanki Guernsey depositors and recover their full savings.
Since Landsbanki Guernsey went into administration on 6 October 2008, depositors in the Icelandic Bank's offshore arm have only received 30% of their savings.
Depositors hoped the British Government would apply diplomatic pressure on Guernsey to ensure the outstanding savings are returned.
However, the Treasury firmly placed responsibility back on the crown dependency, saying as the regulatory authority, it was its responsibility to support savers.
Officials speaking on behalf of the Treasury say the UK is in no position to help Landsbanki Guernsey depositors.
As the States of Guernsey have benefited from years as a financial sector, it should be in a position to bail out savers as necessary, says the Treasury.
The Landsbanki Guernsey Depositors Action Group (LGDAG) will seek a third meeting with the chief minister of Guernsey, Lydon Trott, to press for an interim loan or an alternative way to rectify months of waiting for some 1,600 Landsbanki Guernsey savers.
"Having had high hopes for the meeting with the Treasury, we have once again been left without answers and assurances. We are feeling increasingly frustrated," says Matthew Dorman, spokesman for the LGDAG.
"Clearly no one will take responsibility or support us to ensure the swift return of funds to depositors. HM Treasury officials are adamant that the States of Guernsey is in a position to support depositors. LGDAG is committed to ensuring that this happens," he adds.
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