Rachel Reeves dealt huge blow amidst waning influence as Keir Starmer sides with Ed Miliband over net zero raid

However, Energy Security Secretary Ed Miliband and the Chancellor have reached an agreement in the past few days after tense negotiations, reports The Telegraph.

The news will be considered a victory for Miliband and the left wing of the party who have warned against scaling back green plans.

Under the plans, properties will be more insulated and will be made more energy efficient through boiler upgrades and grants for heat pumps.

It comes as Downing Street seeks to satisfy backbenchers unhappy over spending cuts, but could be seen as a sign of the Chancellor’s shrinking influence in the Cabinet.

Less than 24 hours later, Reeves told a press conference in Rochdale that "not every department will get everything that they want next week."

Meanwhile opposition parties have shown scepticism over net zero, with Tory leader Kemi Badenoch suggesting hitting the target by 2050 was "impossible" and Reform UK's Nigel Farage pledging to scrap it all together.

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Reeves said yesterday in Greater Manchester: "People should be in no doubt that the means test will increase and more people will get winterfuelpayment this winter."

Asked whether she would tell the public if she planned to fund her commitments by raising taxes or cutting spending on other departments, the Chancellor said: “As we have been clear, on winter fuel we will set out how we will fund that at the next fiscal event.

“We will set out how everything will be paid for at the budget in the autumn but it’s important that everything that we do is funded, because that’s how people know that we can afford it.”

Downing Street did not deny that details of how the winter fuel payment may be restored to more pensioners could come at next week’s spending review.

The Prime Minister’s official spokesman told reporters: "As the Prime Minister has said, we will only take decisions that are affordable.

"He has made clear that we want to expand the number of pensioners who are eligible for the winterfuelpayment.

"We will set out the details of that in due course. You have got the Chancellor’s words from this morning. You have got the PM’s words from earlier in the week that we want to set out that detail as soon as possible."