Thousands of homes to receive £2,500 over 10 years regardless of household income

A new scheme from the Department for Energy Security and Net Zero means the government will be making yearly payments to thousands of Brits.

With homes set to end up getting £2,500 off their electricity bills over 10 years, household income will not play a factor.

Instead, the annual discount on bills will be given to customers in 43 locations across Britain.

This will be those within 1,600ft of new or upgraded electricity pylons and substations.

The government’s bill discount scheme was unveiled today (12 August) as payments are set start from next year.

Energy Minister Michael Shanks said: “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."

The government is upgrading the grid. (Jason Alden/Bloomberg via Getty Images)

He explained that the upgrade to the electricity grid is a ‘vital part of how we deliver secure, homegrown energy and unlock economic growth across the country’.

Much of the country’s grid was built in the 60s and the government is rolling out these upgrades needed to ‘connect new sources of electricity generation, strengthen energy security and deliver a more affordable energy system for billpayers’.

Household payments

It’s thought that hundreds of thousands of homes will benefit from the scheme over the next decade and people will only be in scope for the discounts once projects ‘have secured all necessary consents and the main construction works have started’.

Projects that started construction on or after 10 March 2025 will be eligible.

Most households that are eligible will get the discount automatically on their electricity bill every six months via their energy supplier.

But some households may need to apply, for example those on commercial metres.

“Households can expect to receive further information in the first half of next year, when they will be directly contacted by their energy supplier or Ofgem if they qualify,” a government press release reads.

Most eligible homes should automatically get the discount. (Getty Stock Image)

Eligible locations

The government released a list of projects that ‘should give households some indication of whether they may be eligible for the scheme’.

And eligibility will begin being confirmed in the first half of 2027 for projects that have started construction.

England

National Grid Electricity Transmission:

• Bramford to Twinstead – East Anglia
• Norwich to Tilbury – East Anglia, and East of England
• Eastern Green Link 3 - converter station – East of England
• Eastern Green Link 4 - converter station – East of England
• Sea Link - converter station – East Anglia
• Grimsby to Walpole – Yorkshire and the Humber, and East of England
• North Humber to High Marnham – Midlands
• Brinsworth to High Marnham – Yorkshire and the Humber, and the Midlands
• Chesterfield to Willington – Midlands
• North London Reinforcement – London/ South of England

Scotland

SSEN Transmission:

• Banniskirk Hub 400 kV substation and HVDC converter station – North Scotland
• Cambushinnie 400 kV substation – North, and central Scotland
• Fort Augustus Substation 400 kV Upgrade – North Scotland
• Spittal - Loch Buidhe - Beauly 400 kV overhead line – North and North West Scotland
• Beauly - Peterhead 400 kV overhead line – North, and North East Scotland
• Carnaig 400 kV substation – North Scotland
• Hurlie 400 kV Substation – North East Scotland
• Kintore - Tealing 400 kV overhead line – North East Scotland
• New Fanellan 400 kV substation and Converter Station – North Scotland
• Creag Dhubh – Dalmally 275 kV overhead line – West Scotland
• Edinbane substation – West Scotland
• Broadford substation – West Scotland
• Skye 132 kV overhead line reinforcement – West Scotland
• Netherton Hub – North East Scotland
• Tealing - Westfield 400 kV overhead line – Central, and East Scotland
• Bingally 400 kV Substation – North Scotland
• Greens (New Deer 2) 400 kV substation – North East Scotland
• Lewis Hub – West Scotland
• Emmock 400 kV Substation – North East Scotland
• Crarae 275 kV Substation – West Scotland

The payments are set to begin next year. (Jason Alden/Bloomberg via Getty Images)

SP Energy Networks:

• Coalburn Substation – Central Scotland
• Mark Hill Substation– South West Scotland
• Stranoch OHL and Substation – South West Scotland
• Chirmorie – South West Scotland
• Branxton Substation – South East Scotland
• Sanquhar Substation- South Scotland
• Denny to Wishaw 400 kV Reinforcement (DWNO) – Central Scotland, and South Scotland
• Eastern Subsea HVDC Link from Westfield to South Humber (TGDC) (EGL4) – East of Scotland
• Kincardine North – Tealing 400 kV Substation (TKUP) – East of Scotland
• Kincardine North 400 kV Substation (LWUP) – East of Scotland
• Kincardine North – Wishaw 400 kV Reinforcement (DWUP) – Central Scotland and East of Scotland
• Gala North – Harker Area 400 kV (CMN3 / CMN4) – Scottish Borders

Wales

National Grid Electricity Transmission

• Pentir to Trawsfynydd – North Wales