The Tories have said that the coalition government "does God", as it launched an attack on Labour's approach to faith.

Lady Warsi, the Conservative chair, said Labour acted as if faith was confined to "oddities, foreigners and minorities".

In a speech to Church of England bishops in Oxford, Warsi said the last government was "profoundly wrong" because it appeared to view religion as "a rather quaint relic of our pre-industrial history". She added: "They were too suspicious of faith's potential for contributing to society – behind every faith-based charity, they sensed the whiff of conversion and exclusivity.

"And because of these prejudices they didn't create policies to unleash the positive power of faith in our society."

The last government had encouraged "a new kind of intellectual, who dines out on free flowing media and sustains a vocabulary of secularist intolerance," she said. "The fact is that our world is more religious than ever. Faith is here to stay. It is part of the fabric of human experience. And in Britain faith is very much alive and kicking."

Warsi referred to a comment by Alastair Campbell that Labour did not "do God" to show how the coalition understands faith groups. "If anyone suggests that this government does not understand, does not appreciate, does not defend people of faith, dare I even say does not 'do God', then I hope my schedule this week will go some way to banishing that myth," Warsi said, pointing out she had celebrated the Muslim holiday of Eid al-Fitr, dined with the chief rabbi, and is due to meet the pope.

Her remarks will surprise Labour. Tony Blair is a strong Christian who converted to Catholicism. David Cameron has said his faith "is a bit like the reception for Magic FM in the Chilterns: it sort of comes and goes". Nick Clegg is an atheist.