The Basic Payment Scheme was introduced in 2015 and replaced the Single Payment Scheme. It is the main support payment to farmers and landowners in England.
The payment is based on the area of eligible land entered onto a claim form each spring subject to an equivalent number of Basic Payment entitlements being held by a claimant.
There are three different rates of payment based on the classification of the land – Non-SDA (land not in a Severely Disadvantaged Area), SDA Other and Moorland SDA.
The entitlement values (not payment rates) for 2022 are:
| Region | Non-SDA | SDA Other | Moorland SDA |
|---|---|---|---|
| Entitlement Rate | £233.30 | £231.60 | £64.00 |
Progressive reductions are being applied to payments for all claimants from 2021 in order to phase out direct payments by 2028.
The reductions have been confirmed for the years 2021 to 2024 and are summarised below.
Direct Payment Reductions 2021 to 2024
| PAYMENT BAND | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| < £30,000 | 5% | 20% | 35% | 50% |
| £30,000 to £50,000 | 10% | 25% | 40% | 55% |
| £50,000 to £150,000 | 20% | 35% | 50% | 65% |
| > £150,000 | 25% | 40% | 55% | 70% |
It is expected that there will be further progressive reductions to direct payments in 2025, 2026 and 2027.
Payments will be delinked from land and entitlements from 2024. Payments from 2024 will be based on an average of claims made by a claimant in 2020, 2021 and 2022 – subject to a valid Basic Payment claim being submitted and accepted in 2023.
There was an opportunity for farmers who wanted to retire and take a lump sum payment in lieu of annual payments for the remainder of the scheme. The application window for the lump sump exit scheme closed on 30th September 2022.
