Ananova:

The Government's decision to rule out cash handouts for households struggling with soaring fuel bills has been blasted by unions as a "downright disgrace".

The attack comes amid renewed calls for a windfall tax for energy firms after the disclosure that the biggest suppliers increased their dividend pay-outs to shareholders by £257m last year.

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

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

Tony Woodley of Unite 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.

"There must be a rethink and cash assistance for every needy household in the land"

There is concern that those in fuel poverty will start to feel real pain of this year's 42% rise in average bills when winter sets in.

In a speech to the Scottish CBI in Glasgow last night, Gordon Brown insisted there would be no "short-term gimmicks or giveaways".

The Prime Minister said ministers were currently "working up proposals" with utility companies but these would be focused on reducing bills in the long term.

Mr Brown said: "Not short-term gimmicks or giveaways - but firm steps towards making every home in Britain more energy efficient, thus reducing bills not just temporarily, but permanently.

"Because you cannot address a long term problem - the supply and demand for oil - with a short term gimmick like a fuel duty stabiliser."

But Neal Lawson, chairman of left-leaning pressure group Compass, said: "It is not a short-term gimmick to heat the homes of the poor and vulnerable.

"What people want is the warm glow of knowing the Government is on their side, they are not getting it.

Research commissioned by the Local Government Association (LGA) added fuel to the ire of consumers and unions.

It showed that the six biggest companies paid a total of £1.635bn in dividends last year - a 19% increase on the 2006 total of £1.378bn.