From the beginning of next year, 100,000 households living within 500 metres of energy pylons and infrastructure will receive Cost of Living payments under a scheme confirmed by Andy Burnham. The Government impact assessment earlier this year indicated that more than 100,000 households could benefit in the coming decades as further projects follow.
Scheme details and eligibility
The payments are part of a wider effort to upgrade Britain’s electricity grid, which was largely built in the 1960s. Labour Party Energy Minister Michael Shanks said: “Upgrading Britain’s electricity grid is a vital part of how we deliver secure, homegrown energy and unlock economic growth across the country.”
Shanks described the initiative as “a moment of national renewal – upgrading what was built largely in the 1960s for the modern age and is our route to bringing down electricity bills for households across the country.” He emphasised that communities hosting pylons should benefit directly, with the scheme bringing down energy bills for those hosting this vital national infrastructure.
Ofgem’s role in delivering payments
Neil Lawrence, Ofgem executive director for delivery and schemes, said: “Communities that host new electricity transmission infrastructure are playing a vital role in delivering the cleaner, more secure energy system Britain needs.” He noted that the bill discount scheme will help ensure eligible households living near these projects see a direct benefit through discounts on their energy bills.
Lawrence added: “As the scheme administrator, Ofgem’s role is to make sure payments are delivered effectively, fairly and transparently to eligible customers.”
Minister’s commitment to communities
Minister for Energy Consumers Miatta Fahnbulleh said: “As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake.” She stated: “That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits.”
Fahnbulleh concluded: “We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.” The scheme is set to begin in early 2026, with further projects expected to expand eligibility in the coming decades.
