Ministers are reportedly preparing to reduce the amount of money available for heat pump subsidies. This move is part of an effort to fund higher defence spending, according to sources cited by the Guardian.
Energy Secretary Miatta Fahnbulleh has been tasked with identifying over £2bn in savings from her department's budget. These savings are intended to contribute to defence investment, following a plan established by the previous government.
Sources indicate that some of these savings will be achieved by cutting funds from the Boiler Upgrade Scheme (BUS) in England and Wales. The scheme, which offers grants of up to £9,000 for households to install electric heat pumps, will not be abolished but is expected to see cuts of hundreds of millions of pounds from its £2.7bn budget.
The Department for Energy Security and Net Zero stated that savings for the defence investment plan are a small part of its overall budget, which saw a significant uplift. The department plans to outline how it will fund national security investment this autumn.