Eight communities around nuclear sites are set to receive up to £1000/MW in benefits once the stations begin operating.
The funds will be tailored to specific localities and managed locally, with Hinkley Point in Somerset potentially gaining up to £128m.
The scheme builds on the government’s business rates retention scheme introduced on April 1 this year, with local government keeping 50 per cent of the business rates it collects, together with the growth on that share for up to 10 years.
Communities will receive the funding for up to a decade once the plant becomes operational, with further funding from central government for 30 further years in the form of 100 per cent business rate retention from land-based renewables.
Business and energy minister Michael Fallon said: “New nuclear will have a central role to play in our energy strategy, providing heat and light to homes across the country.
“It is absolutely essential that we recognise the contributions of those communities that host major new energy projects.
“This package is in the interests of local people, who will manage it to ensure long-term meaningful benefit to the community.
“It’s proportionate to the scale and lifespan of new nuclear power stations and it builds on the major economic benefits they will bring in terms of jobs, investment and use of local services.”
New nuclear is expected to be worth £930bn globally over the next two decades, with a further £250bn in decommissioning work.
It is also expected to generate up to 40,000 jobs in the UK at its peak.