Energy Secretary Ed Milliband says an extra 80p is to be added to energy bills to fund a reduction for some people. The money will be used to pay £250 a year to people living near near electricity pylons.

The new plan will see anyone who lives with 500metres of new or upgraded pylons getting £2,500 off their energy bills over 10 years. And Mr Milliband says that will be funded by putting up bills by 80p.

The Government needs to build hundreds of miles of new infrastructure to hit its clean energy targets. Ed Milliband told the BBC : ” At the moment, we’re having to switch off offshore wind farms because we haven’t got the transmission infrastructure.

“So everybody benefits from this. Everybody gets lower bills, and those who live near pylons are given a recognition of what they’re doing.”

The government’s Planning and Infrastructure Bill is due to be published this week and could come into power next year. New pylons will also see developers have to pay communities to fund local projects like leisure centres and sports clubs.

As developers pass on the costs to customers this could push up bills by up to £2 more per year.

RenewableUK, which represents the sector,said bill discounts would “help to enable the roll-out of much-needed new grid infrastructure at a faster pace, so that we can make the most of the vast amounts of clean power we’re producing”.

Jackie Copley, campaign lead at CPRE, the countryside charity, said: “Investing in local green spaces or improving community infrastructure would be a better way to spend this money. Paying individuals comes with many problems, including questions of fairness, likely legal challenges, and the fact that it’s impossible to put a price on the loss of a landscape.”