BRITISH Gas announced yesterday it would shed 500 jobs as part of a programme that one trade union predicted would lead to a further 4,000 redundancies.

The Centrica-owned energy giant made the announcement following the closure of its buildings insulation business.

UK and Ireland energy supply boss Mark Hodges said the move, part of a Centrica-wide restructure, would make British Gas more competitive.

“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,” he said.

But general union GMB branded the 500 job losses “a real sickener” and called British Gas’s honesty into question.

“Last year [insulation] went through a reorganisation which we were told was to make that business competitive and everyone thought that was behind us,” said GMB national secretary Brian Strutton.

“But it seems … that the company was hatching secret plans to shut the whole operation down. Staff will feel gutted and we will think twice about believing anything the company says now.”

He predicted that 4,000 more jobs would go in other areas of British Gas.

General union Unison general secretary Dave Prentis said: “It is disappointing that British Gas are cutting yet more jobs around the country.

“This comes at a very uncertain time for those working for the company. It is important that the business now continues to engage fully with the unions to try to cushion the blow of this sad news.”