In a bold shake-up of the UK’s planning system, households near newly constructed pylons will see their annual energy bills slashed—potentially saving them hundreds of pounds each year. The government’s latest proposals aim to streamline energy infrastructure development while compensating affected residents.
Unveiled this week, the initiative offers a financial lifeline to those within 500 meters of new or upgraded electricity infrastructure. Eligible residents can expect to receive up to £2,500 in discounts over a decade—equivalent to £250 per year. The scheme will roll out in 2026, covering above-ground transmission lines, substations, and significant electrical upgrades.
Beyond financial relief, ministers are gearing up for a broader overhaul of the planning system. The government plans to reduce the number of agencies involved in housing and energy project approvals, aiming to eliminate bureaucratic gridlock. Sir Keir Starmer has positioned planning reform as a cornerstone of his economic strategy, emphasizing its role in accelerating infrastructure projects and hitting Labour’s ambitious target of building 1.5 million homes by the end of this Parliament.
The Planning and Infrastructure Bill, set to be unveiled on Tuesday, will introduce fresh funding streams for communities affected by overhead electricity cables. The government is expected to announce compensation funds of up to £200,000 per kilometre of overhead cables and £530,000 per substation, providing direct financial benefits to local areas.
Deputy Prime Minister Angela Rayner said: “This government’s Planning and Infrastructure Bill will slash energy bills for local people living near new projects, so they benefit as we drive forward in our mission to achieve a more prosperous and energy-secure future for the next generation.”
Additionally, the bill proposes scaling back mandatory planning consultations, with Sport England, the Garden History Society, and the Theatres Trust potentially removed from the list of consultees. Over the past three years, more than 300 planning applications have been escalated to the Secretary of State due to disputes with statutory consultees, creating delays in critical infrastructure projects.
With these reforms, the government is prioritizing the UK’s transition to a modernized energy grid and tackling the long-standing inefficiencies in its planning system.
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