Carter Jonas
Carter Jonas

Proposed plans to pay residents in host areas of fracking

The Prime Minister, Theresa May, has proposed making direct payments to households in areas affected by fracking, although it is still unclear whether residents will be swayed by the financial incentive.

In the days before her leadership, Theresa May supported a vision to create a more pro-development climate in England. This would share the benefits of new housing and infrastructure schemes with local authorities and local people.

The Prime Minister changed the consultation plans for a Shale Wealth Fund (SWF) that intends to give up to £1 billion of tax revenues from fracking activities to the areas hosting the work. This has now been changed to include an option for the money to be paid directly to local residents in these areas.

This approach has caused mixed feelings amongst professional bodies, with some concerned that it represents a form of bribery to local residents. At this point in time, it remains uncertain as to how this will work in practice, although there is speculation that this approach could be rolled out more widely and act as a model for other community benefit schemes.

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