The Government has today announced a £910 million package designed to redress the rising cost of energy bills. The long-term scheme will be funded by energy companies that have enjoyed years of fatter and fatter profits but prime minister Gordon Brown stressed: "I do not expect the £910m that we raise to be passed on to the consumer by the energy companies. I think that's a very important point to make."

The package of measures will include free cavity wall and loft insulation for pensioners and poor households, a 50% reduction on the cost of insulation for all other households and a freeze on this year's bills for half a million poor consumers.

It will also incorporate free central heating to poorest pensioners and an increase in 'cold weather payments' from £8.50 a week to £25 a week for pensioners, disabled people and unemployed families with children under five - that is, if temperatures drop below zero for seven consecutive days.

To spread the word, the Government is launching a nationwide advertising campaign informing people about the support available. It will also encourage people to compare suppliers to get the best energy deals, use direct debit to reduce costs, and take advantage of 'money off' deals on energy-efficient products. Adverts will appear in national newspapers from tomorrow, followed by television adverts later this month.

However, trade union leaders, who were calling for a tax windfall on energy giants' profits have described the long-term solution as 'ridiculous'. 

Scott Byrom, utilities manager at moneysupermarket.com, said: "Although it is encouraging to see these measures bought in, they are a kick in the teeth for British bill payers who’ve been left reeling with a whopping 52% increase for gas and 28% for electricity after two rounds of price hikes this year. For those who were paying £912 on average per annum for their fuel bills at the beginning of this year are now faced with bills of £1,294."

He added: "The likelihood is that the majority of households will still see a huge jump in their energy payments, especially with winter round the corner. If the Government can’t enforce energy suppliers to reduce the cost of energy, the buck stops with the bill payers."

In the mean time, Byrom urged consumers to save as much as they can by making sure they are on the best possible energy tariff.  He said that British Gas’ online dual fuel tariff is currently the cheapest on average for households. Customers on this tariff will pay £845 on average a year for their fuel bills compared with £1,328 on its standard tariff, or £1,317 on average across the big six energy giants.

For advice on help available ring the helpline 0800 512 012.

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