People who live near sites used for shale gas exploration could be allowed to receive cash payments so they can benefit from the developments.

Prime Minister Theresa May is launching a consultation on the Shale Wealth Fund to include the option of money being paid directly to local residents in host areas.

The fund, announced in the last Autumn Statement by former Chancellor George Osborne, was designed to set aside up to 10% of the tax proceeds from fracking to benefit the communities hosting wells.

The new fund could deliver up to £10 million per eligible community.

Ms May said: “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. As I said on my first night as Prime Minister: when we take the big calls, we’ll think not of the powerful but of you.

“This announcement is an example of putting those principles into action. It’s about making sure people personally benefit from economic decisions that are taken – not just councils – and putting them back in control over their lives.”