Heat pump grants of up to £9,000 face the axe as Burnham raids Net Zero budget to fill £5bn defence black hole

Energy Secretary Miatta Fahnbulleh has been told to find £2 billion in departmental savings before the October 28 Budget, placing the £2.7 billion Boiler Upgrade Scheme at risk of deep cuts as Andy Burnham seeks to close the gap in his Defence Investment Plan. The scheme currently offers households switching from gas boilers to heat pumps grants of up to £7,500, or up to £9,000 for those off the gas grid. Iain Duncan Smith welcomed the move, but industry leaders warned the reductions could wipe out the heat pump sector entirely.

Keir Starmer left the Defence Investment Plan nearly £5 billion short before leaving office, forcing Burnham to claw back savings from across government departments.

Thousands of families stand to lose around £230 a year in energy bill savings, with fuel poverty experts branding the plan 'short-sighted'.