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British Gas cuts 850 jobs

British Gas has said it plans to cut about 850 jobs to lower costs.

The job cuts will take place in British Gas’ services business, which employs about 10,000 people, and will affect back-office management and support roles.

“Household budgets are stretched, customers are looking for maximum value for money, and if we are going to remain competitive and offer the best prices for our customers, we need to reduce our costs,” a spokesperson for British Gas said.

British Gas had raised domestic tariffs for gas by an average of 18 per cent, and for electricity by an average of 16 percent in August.

British energy regulator Ofgem has said profit margins for energy firms have increased more than eight times since June as a result of rate hikes by the country’s six dominant energy companies.