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Campaigners for a windfall tax on energy companies have begun criticising the prime minister after he appeared to rule out such a move yesterday.

Gordon Brown told Scotland's Confederation of British Industry (CBI) he does not intend to introduce "short-term gimmicks or giveaways" to address the problems faced by Britain's "hard-pressed, hard-working families".

He rejected a "fuel stabiliser" as an inadequate solution to the supply and demand of oil, apparently dismissing calls for a windfall tax on energy firms to pay for energy efficiency schemes.

Union Unite's joint general secretary Tony Woodley reacted angrily to Mr Brown's speech, saying it was unfair that "needy people" be forced to pay for improvements in fuel efficiency.

"There must be a rethink and cash assistance for every needy household in the land. It cannot be right that big business is allowed to bank their obscene profits while ordinary people will shiver this winter," he said.

"If greedy fuel companies have won out over struggling consumers then this is not just a disappointing move by the government but a downright disgrace."

Research published today by the Local Government Association (LGA) shows that dividends among the six major energy suppliers rose by 19 per cent between 2006 and 2007.

It wants the energy firms to contribute £500 million a year towards a national home insulation programme, less than a third of the total dividend payment in 2007.

LGA director Sir Jeremy Beecham said: "The government and Ofgem should seize the opportunity to take a long-term solution to encourage the energy companies to use their disproportionate dividend payments for a massive drive to insulate people's homes."