May diverts fracking cash to householders

A fracking exploration drilling site, as individual households will be given cash payments potentially running into thousands of pounds in recompense for fracking in their area, under new plans announced by Theresa May:  Gareth Fuller/PA Wire
A fracking exploration drilling site, as individual households will be given cash payments potentially running into thousands of pounds in recompense for fracking in their area, under new plans announced by Theresa May: Gareth Fuller/PA Wire

Individual households will be given cash payments potentially running into thousands of pounds in recompense for fracking in their area, under new plans announced by Theresa May.

A £1 billion shale wealth fund unveiled by former chancellor George Osborne in November will set aside up to 10 per cent of the tax proceeds from fracking to benefit the communities hosting wells.

But now the Prime Minister is amending the scheme so the money can go direct to residents rather than being given to councils or community trusts to spend, as Mr Osborne planned.

It is expected that the new fund could deliver as much as £10 million to each community where wells are sited. Downing Street declined to estimate how much payouts could be worth, but it is thought that individual households could receive between £5,000 and £20,000.

The change could go some way to countering resident resistance to fracking, but is likely to be characterised by critics as a “bribe” to householders which could divert cash away from community priorities like infrastructure or skills training.

Speaking ahead of the launch of a consultation on the fund, Mrs May said she wanted to make sure that individuals benefit personally from economic decisions.

“The Government I lead will be always be driven by the interests of the many – ordinary families for whom life is harder than many people in politics realise,” said Mrs May.

Green Party MEP Molly Scott Cato said the proposed payments to individual households amounted to “little more than bribes”.