Following the temporary closure of the Capital Grants scheme in November 2024, Defra has announced that sufficient funding has been secured for 2025/26. This means that completed Capital Grants applications, which were previously on hold, will now be processed.
If you haven’t applied yet, there’s still time – the scheme will reopen later this year through the Rural Payments Service, so you can submit your application when the improved scheme is available.
What does this mean for you?
- Applications on hold – no action needed – your application will be processed, and if approved, you’ll receive an agreement to proceed with your planned works.
- Didn’t apply yet – you’ll be able to re-apply once the scheme reopens.
- Improved controls – the scheme has been refined to manage demand better, with spending caps in place to ensure smaller farms and high-priority projects have a fair chance. Caps are set at £25,000 for water quality, air quality, and natural flood management, and £35,000 for boundaries, trees, and orchards.
This approach ensures that the scheme continues to support projects that improve water quality, air quality, and biodiversity—helping farmers, foresters, and land managers make lasting improvements to the environment.
For more information on the improvements and how to apply read: The Defra Farming Blog: An update on Capital Grants
