Fuel bills payment 'ruled out'

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Ministers had hoped to unveil plans to give assistance packages worth £100 to households struggling with rising bills.

But they are now focusing on a less ambitious deal including support for energy efficiency measures, sources said.

A spokeswoman for the Department for Business, Enterprise and Regulatory Reform (BERR) said ministers had been "working hard" with energy companies to find "long-term" solutions.

She said: "We are committed to responding to the concerns that hard-pressed families are currently facing."

It was suggested on Wednesday that the energy industry was holding out against proposals to fund one-off payments to households.

Prime Minister Gordon Brown's spokesman declined to discuss the details of negotiations between Government and the industry, which he described as "constructive".

It is now expected that an announcement on assistance for people affected by soaring fuel bills will be made next week, following the £1 billion package of support for the housing market announced on Tuesday.

Mr Brown's spokesman said that all options remained on the table - including the windfall tax on power companies' "excessive" profits supported by many Labour backbenchers.