UK Government confirms cash boost for households living near upgraded power infrastructure
Thousands of households across Britain are set to benefit from a fresh government scheme offering £250 off their energy bills each year, simply for living near new electricity pylons.
In an announcement from the Department for Energy Security and Net Zero (DESNZ), the government revealed that eligible residents will receive £125 every six months, totalling £2,500 over the next decade.
The payments are aimed at households located within 500 metres of newly built or upgraded electricity transmission infrastructure.
And the best part? The discount is tied to the home, not the person, so the benefit stays put even if residents move out.
While homes across the country could qualify, it’s rural areas, especially parts of Scotland and the East of England, that are expected to reap the most rewards. These regions are earmarked for significant energy network upgrades in the coming years.
This initiative falls under the government’s Planning and Infrastructure Bill, which officially launches a public consultation on 8 August. A key focus? Doubling the UK’s energy network infrastructure by 2030 to keep up with demand.
“As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake. That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits.
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,” said Miatta Fahnbulleh, Minister for Energy Consumers.
The idea isn’t entirely new. Earlier this year, Housing Minister Alex Norris made it clear that households facing the “sacrifice of having some of the infrastructure in your community” deserve compensation. This scheme delivers just that.
In a move to modernise the UK’s energy system further, the government is also rolling out fresh reforms around smart meters—devices that help residents track usage and cut bills in real-time.
Under new rules enforced by Ofgem, energy suppliers will now face tougher obligations. These include:
- Shorter waiting times for smart meter installations
- Faster repairs for faulty meters
- Automatic compensation for delays and poor service
“Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data. But we know many customers who want a smart meter wait too long to get one installed or face delays on repairs when it stops working, this needs to change.
These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong,” said Charlotte Friel, Director of Retail Pricing and Systems at Ofgem.
Between infrastructure rebates and smart tech rollouts, the UK government is signalling a strong commitment to future-proofing the energy grid—and ensuring communities feel the benefits first-hand.
The consultation begins on 8 August, and if all goes according to plan, Britain could be heading for a more connected, affordable, and community-driven energy future.
