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Government says payments, capped at £10m for communities near wells, will not be made until site is up and running

The government has admitted that payments of up to £10,000 a household for living near a fracking well would not be distributed until a new site begins operating and producing gas – at least five years after exploration begins.

In a consultation on the shale wealth fund published on Monday, officials said that payments would be capped at £10m for each community living near a well, over its lifetime. They also conceded that any money flowing directly to households would not happen until a full-scale fracking industry is up and running.

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Source: Guardian Environment