Boris Johnson has reportedly asked ministers to find existing government schemes that could “lose” £1 billion in total funding in favour of insulation of low income households.

According to The Times, the government is exploring the option of diverting this cash from the £1 billion Public Sector Decarbonisation scheme which provides grants for public sector bodies, including hospitals and schools to fund heat decarbonisation and energy efficiency measures.

The reported plans could involve the expansion of the Energy Company Obligation scheme, a programme that helps billpayers insulate their homes.

A few days ago, the chief of E.ON hailed energy efficiency as the silver bullet in the cost of living and environmental crisis.

Michael Lewis told MPs on the Environmental Audit Committee: “Our plea to the government has always been to push hard on energy efficiency because that is the proven way, if you like the only silver bullet for this crisis that will reduce prices, reduce energy consumption and contribute to net zero on a sustainable basis.”

A government spokesperson told ELN: “We are investing £6.6 billion in total this parliament to improve the energy efficiency of homes and buildings across the country, benefiting tens of thousands of homes and delivering savings of £300 a year on average on their energy bills.

“We continue to look at ways to make UK homes more comfortable and cheaper to heat, which is particularly important in light of increased energy bills.”