The Prime Minister is under pressure to introduce a windfall tax on the profits of energy companies. The proposal is thought to have resulted in significant discord among Gordon Brown’s administration, with as many as 70 party members signing a petition calling for the tax.

It is believed Brown is more in favour of increasing payments made on pollution permits issued under the European Union carbon-trading scheme.

Ministers began breaking ranks with Brown after bids to explore initiatives in helping some of the UK’s poorest failed. The initiative he’s set to endorse will form part of an autumn policy relaunch.

A £2.75bn drive to make low-income family homes more energy efficient has also been considered.