Labour accused of 'bribing Britons' as thousands of homes near pylons to get money off energy bills

This will see those living within 500 metres of new or upgraded overhead power lines start to receive money off their bills in the first half of next year.

The Department for Energy Security and Net Zero said they could ultimately get £2,500 off their electricity bills over 10 years through the discounts.

But Reform, which opposes the UK’s Net Zero targets, branded the plans a “£20-a-month bribe for families whose homes will be permanently devalued”.

The first wave of projects includes National Grid transmission infrastructure from Bramford to Twinstead in East Anglia, the North London Reinforcement project and the Emmock substation in north east Scotland.

A Government impact assessment earlier this year found that more than 100,000 households could benefit from the scheme in the coming decades as further projects follow.

It comes as the Government pushes ahead with upgrades to the country’s electricity grid to allow new sources of clean electricity generation to connect to the network.

Thousands of homes near new electricity pylons will get money off their bills from next year

PA

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.

“It is 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.

“It’s vital we build again as a country and we are determined those communities which host pylons should benefit, which is why we’re bringing down the energy bills of those hosting this vital national infrastructure.”

Also among the first set of projects announced on Wednesday are transmission infrastructure from North Humber to High Marnham in the Midlands and from Pentir to Trawsfynydd in north Wales, as well as the Coalburn, Mark Hill, Branxton and Sanquhar substations across Scotland.

Most households that qualify for the scheme will receive the discount automatically on their electricity bill every six months via their energy supplier, officials said, although some may need to apply, such as those on commercial meters.

Ministers said they will be directly contacted by their energy supplier or Ofgem with further information in the first half of 2027.

These discounts build on the so-called “community funds”, where energy developers have provided financial packages to communities hosting new infrastructure since last year.

Ministers said that projects will only be in scope for the discounts once they have secured all necessary consents and the main construction works have started.

And only overground transmission projects – including substations, convertors, switching stations, sealing-end compounds and onshore converter stations for subsea power lines – will be eligible if construction started on or after March 10, 2025.

Those being delivered by National Grid Electricity Transmission, SP Energy Networks, and SSEN Transmission are set to be eligible.

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.

“The bill discount scheme will help ensure eligible households living near these projects see a direct benefit through discounts on their energy bills.

“As the scheme administrator, Ofgem’s role is to make sure payments are delivered effectively, fairly and transparently to eligible customers.”

However, Richard Tice, deputy leader of Reform, said that the scheme “insults the intelligence” of the public. Reform has pledged to scrap Net Zero.

Without the decarbonisation targets, said Mr Tice, most of the additional infrastructure would not be needed.

He said: “This announcement is simply a £20-a-month bribe for families whose homes will be permanently devalued by tens of thousands because of towering eyesore pylons.

“It insults the intelligence of every British household, especially when new cables should be placed underground where possible instead of scarring our landscape.

“These cables exist solely to prop up the failed net zero agenda which is locking tens of billions of pounds onto energy bills. Scrap net zero and the need for most of these new transmission cables vanishes.”

Octopus Energy welcomed the scheme and said it should be extended to wind farms, which are sometimes paid not to produce power when the grid can't handle it.

A spokesman said: “This is a welcome step in the right direction, recognising that people who contribute to the energy system can pay less.

“We should apply the same approach in other areas and give people cheap power when it’s windy in their region, instead of wasting billions turning off wind farms.”