The government announced over the weekend that communities living near approved sites for shale gas extraction will receive £10m per community.
Initially the money for the fund will be raised from up to 10% of tax revenues coming from shale gas production.
Other community facilities the cash could pay for include improvements to transport links and restoration of local heritage sites.
Those living in the North and the Midlands, where there are significant shale gas reserves, are expected to receive money from the fund first.
Andrew Jones, exchequer secretary to the Treasury, said: “Shale production could play an important part in the UK’s future energy security, creating jobs and boosting our economy.
“The economic benefits must be shared with those living alongside these sites and this funding will ensure local people reap the rewards too.”
The government insist fracking will create around 65,000 jobs and attract £33bn in economic investment while boosting the UK’s energy security.
Anti-fracking campaigners believe shale gas production is a danger to the environment and local communities.
The Scottish Government announced what amounts to a total ban on fracking last month.
