Defra unveils £30m HLS uplift and capital grants reopening

Defra secretary Steve Reed has announced a £30m increase in payment rates for existing Higher Level Stewardship (HLS) agreements and the reopening of the capital grants scheme this summer.

The payment increase is a welcome boost for cash-strapped farmers in England, especially those in upland areas, who are leading the way in nature recovery and habitat management.

This follows repeated calls from the NFU, the RSPB and the National Trust for a payment rise to help farmers address cashflow issues and meet environmental goals.

See also: Defra leaves farmers ‘in limbo’ over green scheme rollout

HLS is England’s legacy “higher tier” scheme and it has about 6,000 farmers in it, with the last agreement starting in 2014.

Many have been extended to sustain environmental benefits during the current transition to new green farming schemes. However, payments have remained unchanged since 2014, despite reductions in direct payments.

Mr Reed told the NFU conference in London on Tuesday 25 February about the importance of the change, stating: “These farmers are the pioneers of nature-friendly farming, often based in upland areas. They deliver high-quality environmental outcomes. Now, finally, they will get a fair price for their work.”

The £30m uplift aims to bring HLS payment rates in line with other farming schemes, ensuring fair compensation for environmental contributions.

Capital grants to reopen

Alongside the HLS increase, the capital grants scheme for England will reopen in the summer with £45m available for 2025-26.

Farmers who applied for the scheme before its closure last November will have their agreements honoured, with 4,000 applications being processed by the Rural Payments Agency, amounting to £120m over their lifetime.

In an interview with Farmers Weekly, Mr Reed explained that the funds for the HLS increase were part of Defra’s £2.4bn annual farming budget.

“It’s all part of the Defra budget we’ve been going through, making sure we use every penny as effectively as possible,” he said. “I was delighted to announce this change because farmers in these schemes have not been receiving an amount equivalent to other parts of the farming budget.

“They’ve pointed this out to me many times, both in opposition and in government. Today, as secretary of state, I’m glad to be able to do something to help them.”

During the conference, NFU president Tom Bradshaw reiterated the union’s calls for an HLS payment uplift and urged Defra to publish the full Environmental Land Management (ELM) offer. “I’m calling on Defra to urgently publish the full ELM offer, and to commit to transparency,” he said.

CS Higher Tier update

Defra also confirmed plans to open a new Countryside Stewardship (CS) Higher Tier this summer, offering funding for sustainable land management, including woodlands and heritage sites.

Pre-application advice will be available, and farmers can prepare by applying for capital grants.

However, the NFU raised concerns about Natural England’s capacity to support the scheme rollout, with plans to support just 700 Higher Tier agreements in 2025-26.