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Today's deal follows threats from the Government earlier this year that it would impose a windfall tax on energy companies unless they made extra efforts to cut fuel bills for the poor. Ofgem, the industry regulator, first raised the prospect of a windfall tax when it said that the six big companies would effectively receive a £9 billion windfall from receiving free carbon emissions credits and that these could be subject to a one-off levy to help reduce fuel poverty.

Under today's agreement, six companies - British Gas, Scottish and Southern Energy, ScottishPower, EDF Energy, E.on and RWE's npower - will increase spending from £50 million in the past financial year to £100 million this year, £125 million in 2009-10 and £150 million in 2010-11.

Ministers said the money could also be used to pay for energy efficiency measures.

Earlier this week, two charities said they were taking legal action against the government for not doing enough to help people hit by rising fuel prices.

Friends of the Earth and Help the Aged are bringing the joint legal challenge to end "the misery of fuel poverty" and filed a judicial review application with the High Court on Wednesday.

The Government is legally bound to eradicate fuel poverty for vulnerable households by 2010. But, by its own estimates, it will miss this target by a large margin. By 2010, there may still be 1.3 million vulnerable households in fuel poverty – nearly the same number as at the time of the Government’s Fuel Poverty Strategy in 2001.

Mervyn Kohler, special adviser for Help the Aged, said earlier this week: "The Government’s fuel poverty strategy is a fiasco and, all too often, older people are the casualties."

"When fuel costs fell, the Government was happy to take the credit for a fall in fuel poverty. Now that the energy market has changed, it must take responsibility for its inadequate and passive response."

Mr Hutton said: “Thanks to the cooperation of our energy companies the amount of money being spent on social programmes to help the poorest heat their homes is now set to treble.“

"This is a significant boost to the billions already spent by Government and the energy companies and means we can now get this vital extra support to the people who really need it in time for the coldest months this coming winter," he said.

Scottish and Southern Energy noted that the Government had stated that given the “substantial” commitment that an agreement of this kind represents, it will not expect companies to do more over the period 2008-11 on social assistance.

“Vulnerable customers need the lowest prices available, not simply a tariff labelled ’social’, and that principle is at the heart of our new code of practice,” Ian Marchant, chief executive of SSE, said.

British Gas said: “We welcome today’s decision regarding a voluntary approach to addressing fuel poverty. British Gas has been widely recognised as leading the energy sector on this issue. Today’s decision means the other suppliers will now have to shoulder a more equitable share of assistance for those in fuel poverty which is good news for consumers.”

EDF Energy welcomed the announcement and said that it looked forward to further discussions with the Government on how to deliver the additional support.

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