Labour plans to slash heat pump grants worth up to £9,000 to free up cash for defence spending

Energy Secretary Miatta Fahnbulleh has been told to find more than £2bn in savings from her departmental budget so the money can be redirected to defence. Hundreds of millions of pounds are set to be cut from the boiler upgrade scheme's £2.7bn five-year budget, though the scheme itself will remain in place. The grants of up to £9,000 have allowed tens of thousands of households to swap gas boilers for electric heat pumps.

Treasury officials have long viewed the boiler upgrade scheme as a subsidy that mainly benefits middle-class households.

Critics warn the cuts would damage Britain's fledgling heat pump industry and undermine Labour's own climate commitments.

Approval for the Jackdaw gasfield is expected from ministers as early as this week, deepening concerns about a retreat from green energy pledges.