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Neither my warranty nor Volkswagen will repair an ESP fault on my Golf. What can I do?

I have a Volkswagen Golf 2006 which has developed this ESP fault. I innocently took it back to the dealer we bought it from and said what was happening. He said he'd do a diagnostic test and would be in touch. I then got told it would have to go to the Volkswagen dealer, only to be told that my warranty that I bought from the dealer (which still has two years to go) says that because it is a known fault, they will not pay, even though it states the warranty covers all electrical and mechanical factory-fitted components, including labour. Volkswagen are saying they are not paying for it and all the chap at the dealership is saying is I'm stuck in the middle with no one giving way. This has been going on since Monday.

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Complete cobblers. If the car has been fully maintained by Volkswagen franchises then Volkswagen will pay most or all of the cost. Even if it hasn't, Volkswagen will still contribute part of the cost. Email directly.
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