DAVID Cameron has backed ‘cash payments’ to householders’ directly affected by fracking.

The Prime Minister said he was sympathetic to compensation for residents to ‘make up for any inconvenience’ when wells were dug.

His comments followed an announcement by fracking firm Cuadrilla that Lancashire communities where it drills for shale gas will get £100,000 each to spend on local projects.

Earlier this week Mr Cameron said local councils would also receive all the business rates from shale gas schemes rather than half.

Last year the British Geological Survey revealed significant shale gas resources under the M65 corridor across Hyndburn, Burnley, Pendle and Rossendale.

Cuadrilla has asked Accrington-based Community Foundation for Lancashire to run a pilot scheme offering community benefit funds of £100,000 each at shale gas exploration sites.

Mr Cameron said direct cash compensation to residents could be justified ‘because of the disturbance of a well being dug’ in the early stages.