Planning and Infrastructure Bill

Baroness Pinnock Excerpts

Committee stage
Monday 1st September 2025 Lords Chamber

[Baroness Coffey (Con)]

My Lords, I will speak to Amendment 82C; I have also tabled a number of other amendments in this group. In essence, this amendment considers bill discounts and community benefits.

I think it is fair to say that the Government have recognised the need for some benefits, but they have not been generous enough, in my view. That is why I also strongly support Amendment 83, tabled by my noble friends on the Front Bench, to make sure that we are sufficiently generous. I am convinced that that will go a long way to persuading—or at least giving some comfort to—householders in large parts of our United Kingdom who will suffer some of the consequential impacts of the acceleration of renewable energy involving pylons and similar.

In essence, I am also concerned that we seem to have lost the amount of electricity generation happening around the country. It seemed quite odd to me that people might get compensation for there being a pylon within 500 metres of them, but people living next to the generation of new substations and new nuclear power stations are not, as it stands, intended to receive any community benefit.

One of the successes of the French Government was to try to reduce the electricity bills of people living close to generation. That has long been considered a sensible way forward for a local community. I am not saying that everybody in those local communities wants to be, to use their words, “bought off” by a reduction on their bill, but it would go a considerable way with some of the frustration in the preparation of those huge construction projects as well as being an ongoing reminder that they are living near a nuclear power station. They may not have realised one was going to be built there—or a substation, or the like—when they moved to that area.

Clause 26 enables the establishment of the energy bill discount scheme. I have tabled a couple of amendments, that it should not be “may” but “must”. I am conscious that the noble Earl, Lord Russell, has also included “must” in Amendment 86. That matters to give absolute certainty to local communities that this will happen and that we will not have to wait for further consultation, commencements and the like, and that it will actually be done.

It is important that we consider not just nuclear, which I have referred to already—I do not think that I would qualify for any of that, by the way; I do not live too far away from Sizewell C, but nevertheless, there are plenty of people who qualify. We should also consider it for other energy projects, including wind farms and the like, especially recognising the Government’s proposals.

The Government’s proposed discount is only 25% of the £1,000 bill discount that the previous Government suggested, which has already been referred to in Amendment 83. However, it is clear that we need to make sure this gets to the households, so there are parts of this clause which are absolutely right to be included by the Government.

On Amendment 86, tabled by the noble Earl, Lord Russell, I recall that I was a Parliamentary Private Secretary to Michael Fallon a long time ago. I think it was back in 2013 that we started discussing what amount of money local communities should get. That reflects quite how long this discussion has been going on for. At one point, it was about business rate revenues: what would be retained, what would be kept by the council and what would be given to bill payers. It is important to make sure that as much of this money goes directly to local people as possible.

In terms of thinking this through, the Ministers may not have the answer today, and I do not expect them to have an answer on every single part of discussions about business rates retentions. However, it would be useful to understand where the Government have ended up on how much of business rates would be retained by local councils for the operation of all these different power plants which are busy being built around the country. I am sure that local government would welcome that clarity. Certainly, if 100% of the business rates of Sizewell C were to be retained in East Suffolk—indeed, by the new unitary authority in due course—they would be very happy indeed. That is not to say that East Suffolk keeps all that money; right now, it participates in pooling. Nevertheless, it is about recognising that this significant infrastructure in a very modest way provides some local community benefit which can be used for a variety of factors. It is for those reasons that generation as well as pylons need to be recognised in any bill discount scheme. I hope that the Government will be generous in that regard.

Forgive me, but there is one other amendment that I have forgotten to speak to. It would make sure that this cost is not borne by other taxpayers or bill payers. This needs to be considered in the cost of the project. We will discuss this more in the Moses Room on Wednesday, but, too often, when it seems that the Government are being very generous about discounts, rebates and similar, it is actually bill payers in other parts of the country who simply pay for that. We need to recognise that we have an electricity system that will of course bring some disruption in certain parts of the country where generation and other aspects of transmission are happening—we all need to pay our energy bills—but, for once, we should see some of the energy companies recognising the significant profits they will be making from those projects and that, for the future, they do not have to rely on bill payers paying for those benefits in the short term. I beg to move.

[Baroness Pinnock (LD)]

My Lords, Amendment 85 in my name seeks to explore the extent and purpose of the compensation proposed for new energy infrastructure, particularly with regard to electrical infrastructure that already exists. Can the Minister explain how the clause enhances schemes that currently exist in the form of wayleave arrangements and payments for use of land for pylons, for example? Will the new scheme, for instance, be consistent with current arrangements for compensation?

Clarity about the parameters used to determine those residents who will qualify for compensation for the new infrastructure is important in understanding the scale of the scheme as anticipated by the Government. In a press statement, the Government stated that households within 500 metres of new or upgraded electricity transmission infrastructure will get electricity bill discounts of up to £2,500 over 10 years, and that this will see rural communities receive hundreds of pounds in their pockets for hosting vital infrastructure. It continues:

“Alongside money off bills, separate new guidance will set out how developers should ensure communities hosting transmission infrastructure can benefit by funding projects like sports clubs, educational programmes or leisure facilities”.


That press release sets out the principles behind what the Government are proposing for new electricity infrastructure. As I am sure the Minister will know, there are already over 20,000 pre-existing pylons, which have been associated largely with coalfields. Hence, many of the clusters of pylons are close to those sites; in Yorkshire, for example. For those communities at that time, there was an expectation by the state that electricity transmission was for the common good. The question I want an answer to today is: where has that sense of common purpose gone? Why are we not still considering the idea that for major infrastructure projects where the whole nation will benefit communities will need to accept that for the benefit of everybody, as was done in the past?

In their press release, the Government state categorically that it is rural communities that will see huge financial benefit from the scheme. Obviously, I do not have any argument with that, but I question the argument for compensating residents in those communities now when communities with infrastructure constructed in a different generation were not. Can the Minister explain, for example, whether the compensation will be extended to the Yorkshire GREEN scheme, which is upgrading existing infrastructure down the spine of Yorkshire to enable more green infrastructure to be linked to the grid? It is an upgrade of older infrastructure. Will those communities benefit from this scheme?