Changes to T&Cs
All existing EU agri-environment agreements moved to domestic (UK) T&Cs (Terms and Conditions) on 1 January 2023.
The move allows for a simplification of the schemes which in turn will help to create greater flexibility and opportunities for agreement holders, an ask the NFU has continued to lobby for. These flexibilities are outlined below.
A summary of the main changes to the T&Cs is available on GOV.UK for each scheme:
- Environmental Stewardship agreements: addendum to terms and conditions | GOV.UK
- Countryside Stewardship agreements: modified terms and conditions GOV.UK
Annual revenue claims
On 1 December 2024 the RPA started making the 2024 CS and ES/HLS annual claim payments.
Although the payment window runs until 30 June 2025, the RPA aims to make the payments as promptly as possible. Each claim is run through a series of checks by the RPA to validate and verify it – in some cases these checks can take longer than others.
To be paid for the revenue actions in a CS Mid Tier, Higher Tier or ES/HLS agreement, including agreements which started in 2024, an annual revenue claim must be submitted during the claim window.
The CS and ES 2024 revenue claim window opened on 14 March. The revenue claim deadline (without reductions) closed on 15 May. Claims could, however, still be made until 2 September 2024, but reductions increase the later the claim is submitted.
CS agreement holders will have the option to either submit a claim form, or an annual declaration during the claim window.
Before submitting a claim, it is important to check that the land use codes recorded for the land parcels are correct and consistent with the claim. Failure to do this may lead to processing delays and hold up payments.
Payments for revenue claims typically begin in December, but can be made anytime between December and June.
Capital grants
Capital grants can form part of your CS mid or Higher Tier agreement, or a standalone grant agreement. There are some capital grants available if you are in agreement. More information can be found at: GOV.UK | Capital items: guidance for applicants and agreement holders.
Capital grant claims can be made at any time of the year if it is:
- within three months of the end of your agreement – a late claim reduction will apply if the claim is received between three and six months.
- after the capital work is finished
- after you have been charged or invoiced.
Multiple partial capital grant claims can be made for most, but not all, options as long as that part of the work is complete and invoiced. This can help manage cash flow for work which is often completed in stages.
- RPA guidance on submitting a CS revenue or capital claim can be found on: GOV.UK | How to make a capital or revenue claim for Countryside Stewardship.
- RPA guidance on how to get a payment for a ES/HLS agreement can be found at: GOV.UK | How to get paid under an Environmental Stewardship agreement.
Flexibilities
Site visits and administrative checks
There is greater flexibility to the RPA's approach to site visits (previously called inspections) and administrative checks.
This includes a longer notice period given to agreement holders before a site visit and in some cases virtual site visits.
The field officers (previously called inspectors) will take a new supportive and farmer focused approach. More information about this approach can be found on this RPA blog: RPA’s new supportive, partnership-based approach to visits | GOV.UK
Breaches, repayments, and penalties
Where there is a difference between what is being delivered in the agreement and what is being claimed the RPA, following checks, will recover any difference.
If the RPA has already paid the agreement holder, they will recover the difference.
Additional penalties however will not be applied but reductions will still apply to late payment claims.
There will be no payment recovery for exiting an agreement early and entering another environmental scheme.
HLS extensions
The RPA is offering a two-year extension to eligible HLS agreements expiring in 2024. Natural England has already approved these agreements for extension. If your agreement has already expired, you can only request an extension if you have continued to manage your land in accordance with your agreement.
For HLS agreements expiring in 2025, Natural England will review each case and recommend either a one or two year extension.
Defra previously announced its intention to retire HLS agreements and encourage their transition to SFI or CS. The final HLS agreements will expire in 2028.
Find out more at: GOV.UK | CSHT mirror agreements and HLS extensions: an overview.
CS mirror agreements
If your Higher Tier agreement expires at the end of 2024, or is partly expiring, you’ll be offered a mirror agreement with the same duration. The agreement will be identical to your existing agreement.
If your agreement contains an SSSI, you will need to contact Natural England separately to update the SSSI consent to match the duration of your new CS Higher Tier agreement.
Find out more at: GOV.UK | CSHT mirror agreements and HLS extensions: an overview.
Transferring between schemes
The ability to move between agreements is another one of the flexibilities created as a result of existing EU agri-environment agreements moving to domestic T&Cs from 1 January 2023.
Currently, there is no formal process to enable transfers between schemes such as HLS and CS to SFI. The NFU is lobbying the new government for arrangements to be put in place and guidance to be issued.
Defra intends to introduce an automatic process next year. To ensure continuity of support, Defra is offering mirror or extensions to CSHT or HLS agreements expiring soon.
The NFU’s current understanding is an agreement will need to be terminated before an application can be started for a new scheme. For the agreement you are leaving, you will be paid until the last complete agreement year. If you leave part way through the agreement year, you will not be paid for the part-year.
The new agreement will not need to have the equivalent options in it.
Guidance can be found at: GOV.UK | CSHT mirror agreements and HLS extensions: an overview.
Stacking CS/ES/HLS and SFI
Defra will not allow payment for the same action twice. Some of the scheme actions are however different, this means that some options and agreements can be stacked in the same area.
Interaction between an SFI agreement and CS depends on the standard and type of agreement (revenue or capital). Each SFI action sets out which CS or HLS options are compatible.
More information about how SFI interacts with CS/ES/HLS can be found at GOV.UK | How an SFI standards agreement interacts with other funding schemes.
Defra is aiming for a single integrated online service where farmers can select the combination of actions across SFI and CS that work for them. This will not be available in the short term.
