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Guidance: Delinked payments: replacing the Basic Payment Scheme

Rural Payments Agency

February 15
08:00 2024

The Rural Payments Agency (RPA) will replace the Basic Payment Scheme (BPS) in England with delinked payments in 2024. The 2023 scheme year was the last year of BPS.

The delinked payments scheme rules are set out in new regulations which have been approved by Parliament and came into force on 1 January 2024.

You will not need any land or entitlements to receive delinked payments.

RPA will pay delinked payments each year from 2024 to 2027. The amount you receive will decrease each year as we apply progressive reductions. This is explained in How delinked payments are calculated. 2027 will be the last year of delinked payments.

Check if youre eligible for delinked payments

To receive delinked payments, you must:

  • be eligible - this means you must have claimed, and been eligible for, BPS payments in England in the 2023 scheme year (except for some inherited land). Read the BPS rules for 2023 for information about eligibility for BPS
  • have a reference amount

Your reference amount will normally be your average BPS payment in the reference period, which is the BPS 2020 to 2022 scheme years. If you did not claim BPS in the reference period, you will only have a reference amount if BPS reference data has been transferred to you.

Your BPS 2023 claim does not need to have been for the same amount of land, or for land in the same part of England, as you claimed in the reference period.

Your BPS 2023 claim needed to be for at least 5 eligible hectares, with 5 BPS entitlements in the same BPS payment region as the land.

So long as you are eligible for delinked payments, the value of your payments for 2024 to 2027 will not be affected if your farm size changes, or if you change what the land is used for, after BPS 2022 (the last year of the reference period).

You can receive delinked payments even if you choose to stop farming after the BPS 2023 application deadline (15 May 2023).

You will not be eligible for delinked payments if you have received a payment under the Lump Sum Exit Scheme.

Receiving delinked payments

You will not need to apply to receive delinked payments.

Your delinked payments information statement

In November, or December, 2023 we sent a statement for you to check, showing your reference amount based on the reference data we held for you at that time. We will use your reference amount when we calculate your delinked payments each year, if you are eligible.

If you claimed BPS in any of the scheme years 2020, 2021 or 2022, but did not receive an information statement, please contact us to request one. We will then check our records to confirm if you should have received a statement and let you know the outcome.

Decline payments

Contact RPA by email or post as soon as possible if you do not want to receive a delinked payment.

How reference amounts are calculated

Your delinked payments will be based on a reference amount.We use your BPS 2020, 2021 and 2022 payment information as the reference data to calculate your reference amount.

Your reference amount will be the average of the BPS payments made to your business for these scheme years, including any young farmer payment or greening payment.

Your reference amount will be adjusted if:

  • your BPS reference data is amended as a result of further RPA checks, such as following a BPS payment query or appeal you have submitted for any of the reference years, 2020, 2021 or 2022
  • BPS reference data has been transferred to or from your business.

We will add up your BPS payments for the 2020,2021 and2022 scheme years and divide by 3. We will divide by 3 even if no BPS payment was made to you in 1 or 2 of these 3 scheme years.

The reference data will take account of any reductions applied for over-claiming land.

The reference data will not take account of:

  • over-claim penalties (which can be applied to BPS payments on top of over-claim reductions)
  • reductions and penalties for not meeting the greening rules
  • late application penalties
  • penalties for not declaring all agricultural land parcels
  • cross compliance penalties
  • reductions to amounts above 150,000
  • progressive reductions for BPS 2021 and BPS 2022
  • amounts intercepted from your BPS 2020, 2021 or 2022 payments due to overpayments for other scheme years or other schemes

If you received a manual payment for BPS 2020, 2021 or 2022, this will be taken into account in your reference data.

If you also claimed BPS on entitlements in Scotland, Wales or Northern Ireland, your reference amount will be based only on the part of your payment which relates to your English entitlements. Payment schemes in Scotland, Wales or Northern Ireland will operate under the rules set by the relevant UK administration.

How delinked payments are calculated

We will apply progressive reductions when we calculate your delinked payments each year. This means the value of the delinked payments will become a smaller proportion of the reference amount each year.

Your delinked payment each year =

your reference amount - progressive reductions for that year

Use the progressive reductions calculator to see how progressive reductions may affect your payment for the 2024 scheme year. Different progressive reductions will be applied for years 2025 to 2027 as delinked payments are gradually phased out. These reductions have not been announced yet.

We plan to make your delinked payment in 2 instalments each year - an advance payment of around 50% from 1 August with the balance payment from 1 December.

If BPS reference data was used to calculate a payment under the Lump Sum Exit Scheme, it cannot also be used to calculate a delinked payment. We will contact farmers who are affected by this.

Transferring land after the reference period

Your reference amount will not be affected if you transfer out all or some of your land after 16 May 2022 (the BPS 2022 deadline). For example, where your tenancy comes to an end and the land goes back to the landlord. You will still need to have claimed, and been eligible for, BPS 2023 to receive delinked payments. To do this you will still have needed at least 5 hectares of eligible land and 5 BPS entitlements on 15 May 2023.

If you transfer in land after 16 May 2022, this will not increase your reference amount.

You can choose to transfer some or all of your reference amount to another business.

Business changes since BPS 2020

There may have been changes to the structure of your business since you were paid BPS 2020 (the first year of the reference period) which affect the delinked payments you could be eligible to receive. These changes could affect whether:

  • you meet the requirement to have claimed BPS in 2023
  • the BPS 2020 to 2022 payments of a previous business can be included in the calculation of your reference amount

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