London - The British government Thursday unveiled an industry-backed aid programme of 910 million pounds (1,6 billion dollars) to help households cope with soaring energy prices and to combat what has become known as "fuel poverty."

Prime Minister Gordon Brown said low income earners and pensioners would receive free loft and cavity insulation, while everybody else would be given financial incentives to install energy saving measures over the next 3 years.

More immediately, winter fuel payments for this year would be increased.

The government would legislate to ensure that energy suppliers and electricity producers would provide the funding of the measures and not pass on the costs to consumers.

Trade Unions and anti-poverty groups dismissed the measures as "half-baked" and said the government had succumbed to the interests of the oil industry by not introducing a so-called windfall tax on oil profits, something demanded by unions and many Labour members of parliament.

Brown said the government had considered bringing in a windfall tax but decided that the new measures were "the better way forward" in the longer term.

The announcement came after a leading energy boss was reported as saying that higher fuel bills this winter would be good for profits.

Mark Owen-Lloyd of German energy giant E. ON, asked at a seminar how high gas and oil prices would be affected by a harsh winter, said: "It will make more money for us."

In a statement, E. ON said: We apologize unreservedly for the comment that was clearly thoroughly inappropriate."

Brown, commenting on the gaffe, also called it "inappropriate."

"I think everybody is against people making remarks like that, and I'm pleased there has now been a full and comprehensive apology." (dpa)