Handouts ruling blasted

THE decision to rule out cash handouts for households struggling with soaring fuel bills was blasted by unions as a "downright disgrace".

Ministers were expected to unveil plans to give each household up to pounds 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.

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".

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.

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NO GIMMICKS: Prime Minister Gordon Brown delivers a keynote speech to the Scottish CBI at the Glasgow Hilton Hotel last night

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