Families living near new electricity pylons and overhead power lines are to be offered up to £2,500 in compensation under Government plans. Households within 500 metres of new transmission infrastructure will qualify for £250 a year off their energy bills for up to 10 years – a package worth up to £2,500.
Compensation package details
Ministers hope the payments will soften opposition to the huge expansion of Britain's electricity grid needed to connect offshore wind farms and other renewable energy projects to homes, factories and data centres. The scheme covers people living close to new overhead transmission power lines carried on pylons, as well as major substations and converter stations built as part of the national grid upgrade.
Most households will receive the money automatically through their electricity supplier in two £125 payments every year. Those without a standard domestic electricity account will instead be able to apply for a yearly £250 payment or voucher. The discounts are expected to start reaching households in the first half of 2027, subject to Parliament approving the legislation later this year.
Who qualifies
To receive the payments, households must live within 500 metres of eligible new or significantly upgraded electricity transmission infrastructure. They must be close to projects where construction starts on or after March 10, 2025, and must already exist when construction begins – homes built afterwards will not qualify. People living near more than one qualifying project will generally only receive one payment.
The Government says the payments are designed to recognise the impact on communities hosting the new infrastructure required to modernise Britain's electricity network. Under the plans, landlords receiving the money on behalf of tenants will usually be legally required to pass the discount on.
Payment schedule and amounts
Every six months, eligible households will receive a £125 discount, totaling £250 each year, with a maximum payment period of 10 years and a maximum total of £2,500. The Department for Energy Security and Net Zero said eligible households living within 500 metres of new or significantly upgraded transmission infrastructure will receive electricity bill discounts of up to £250 a year for up to 10 years, with most households receiving the money automatically through their energy supplier.
Officials also plan to publish a list later this summer showing which transmission projects are expected to qualify, giving households an early indication of whether they could receive the payments.
