A decision to rule out handouts for households struggling with fuel bills has been condemned by unions.

Ministers were expected to unveil plans to give each household up to £100 following in-depth discussions with power companies.

But Whitehall sources confirmed the Government would instead focus on long-term proposals including support for energy efficiency measures.

The Unite union said "greedy" fuel companies had won out over struggling consumers and people needed an "immediate respite" from rising energy costs.

Left-leaning pressure group Compass said the real disappointment would be felt by the "fuel poor who will go cold this winter".

Cabinet Office Minister Phil Hope refused to confirm that cash handouts are no longer part of the Government's plans, but said "long-term efficiency" was the way forward.

He said: "I don't want to make predictions about what the Government will be announcing next week in terms of energy policy.

"What I can say is that, as we go through these hard economic times, because of a global economic storm, we want to get through this in a way that has fairness and opportunity at its heart.

"For example, greater fuel efficiency - which means that people spend less on their bills - not only means people cope better because there's cash in their pockets but also the environment gets improved as well."

Tony Woodley, joint leader of the Unite union, said: "If greedy fuel companies have won out over struggling consumers then this is not just a disappointing move by the Government but a downright disgrace.

"At this moment in time people need immediate respite from the struggle to pay their gas and electricity bills.

"There must be a rethink and cash assistance for every needy household in the land. It cannot be right that big business is allowed to bank their obscene profits while ordinary people will shiver this winter."

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