The government has admitted that it is powerless to stop energy firms passing on the cost on its fuel assistance package onto customers.

Business Secretary John Hutton said he could not stop firms increasing bills in response but said there would be “no justification” for them doing so.

The plan includes half-price insulation for all households and a freeze on this year’s bills for the poorest families.

The measures have been criticised as “flimsy” and “disappointing”.

Gordon Brown said he hoped for a “sea change in energy efficiency” and help for the poorest households this winter.

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