British Gas is set to cut 500 jobs in its energy efficiency business in an effort to reduce its costs.

The roles are based in Oxford, Leeds and Leicester and will affect employees who deal with insulation. 

The company currently has a workforce of 28,000 across the UK.

British Gas boss Mark Hodges, Chief Executive, Energy Supply & Services, UK and Ireland, said: “We are focused on improving the efficiency and effectiveness of our organisation to meet the changing needs of our customers.

"British Gas is well positioned to grow, but we must ensure that our costs allow us to be competitive for our customers.

“I recognise that this will be difficult news for the employees who may be affected.

"However I believe today’s announcement is in the best long-term interests of the business.

"Our priority is to support all those potentially impacted, and to ensure a fair and transparent consultation process.”