How HS2 affects payments for stewardship scheme agreements
Updated 28 July 2023
Applies to England
How HS2 affects payments and eligibility
When HS2 Ltd takes control of land on the Phase One route for more than 12 months it can’t remain in your Environmental Stewardship (ES) or Countryside Stewardship (CS) agreement. This is because you’ll no longer be able to meet the terms and conditions of your agreement.
The Rural Payments Agency has to:
- remove land parcels and capital items affected from your agreement
- stop payments
- assess whether to reclaim grant you’ve received
You may be able to use one of these options to minimise the effect on your business:
- show that exceptional circumstances have stopped you meeting the terms of your agreement (known as ‘force majeure’)
- use the 5 year break clause in a 10 year HLS agreement
- recover repayments from HS2 Ltd
You can apply for a derogation if your land’s affected for less than 12 months.
Check if your agreement is at risk
Your agreement’s at risk if HM Land Registry or HS2 Ltd tell you that HS2 Ltd will take over your land before the agreement ends. You must tell the Rural Payments Agency if the land is in a CS or ES agreement.
Countryside Stewardship
HS2 is most likely to affect 10 year Higher Tier agreements. It’s likely to take over land in these agreements before they end.
You need to check if HS2’s route affects any of your land parcels under Mid Tier or Higher Tier options. You must tell the Rural Payments Agency if it does.
Environmental Stewardship
You must tell the Rural Payments Agency if HS2’s route affects any land parcels and part-parcels that you use for:
- Higher Level Stewardship (HLS) options
- Entry Level Stewardship (ELS) options and points
- Organic Entry Level Stewardship (OELS) options and points
Check you can still meet the minimum number of ELS and OELS points required. You may need to add new land parcels or features to your agreement to make up the points you’ll lose. Refer to your agreement and its handbook.
Claim exceptional circumstances (force majeure)
You can claim force majeure as a reason not to repay funding. Not knowing the Phase One route of HS2 before your agreement started would count as a force majeure event.
Parliament confirmed the route on 23 February 2017. You can only claim force majeure for agreements that started before this date.
How to claim force majeure
You can either:
- complete the Rural Payments Agency’s force majeure form
- explain your case in writing to the Rural Payments Agency - you’ll need to give all the details the form asks for
You’ll need to give the Rural Payments Agency the date when HS2 Ltd will take over your land before it can process your claim.
Send your claim to the Rural Payments Agency.
Deadlines for claim when HS2 Ltd permanently takes over land
HM Land Registry will send you a general vesting declaration (GVD) if HS2 Ltd will take over your land permanently.
You must:
- Send the force majeure form or write to the Rural Payments Agency within 8 weeks of getting the GVD.
- Write to Rural Payments Agency within 8 weeks of HS2 Ltd entering your land.
Deadlines for claim when HS2 Ltd temporarily takes over land
HS2 Ltd will send you a notice of temporary possession of land if it will take over your land for a limited time.
You must:
- Send the force majeure form or write to the Rural Payments Agency within 8 weeks of getting the notice.
- Write to the Rural Payments Agency within 8 weeks of HS2 Ltd entering your land.
Use a break clause for HLS agreements
You may be able to use the 5 year break clause to end your HLS agreement before HS2 Ltd starts work. If you do this, the Rural Payments Agency won’t ask you to repay your grant.
Check:
- your agreement has more than 5 years to go
- the break clause point is before HS2 Ltd takes control of your land
You must give the Rural Payments Agency one month’s written notice by writing to the Rural Payments Agency office.
Recover repayments from HS2 Ltd
If the Rural Payments Agency reclaims grant money, you may be able to recover repayments from HS2 Ltd. Discuss this with representatives of HS2 Ltd.
HS2 helpdesk
High Speed Two (HS2) Ltd
Two Snowhill
Snow Hill Queensway
Birmingham
B4 6GA
The helpdesk team are unable to transfer calls internally to HS2 Ltd members of staff.
You must not claim repayment of ES or CS grant compensation from HS2 Ltd if the Rural Payments Agency has approved your force majeure claim.
Apply for a derogation for land temporarily affected
Land may stay in an ES scheme if HS2 Ltd’s activities will affect your land for less than 12 months. Apply for a derogation using the ‘Minor and temporary adjustment form’.
Send the form to the Rural Payments Agency office.
The Rural Payments Agency may reduce your payments if you get a derogation.
Contact
Environmental Stewardship
Rural Payments Agency (ES)
PO Box 390
Worksop
S80 9HD
Email ruralpayments@defra.gov.uk
Main switchboard 03000 200 301
Countryside Stewardship
Rural Payments Agency
PO Box 69
Reading
RG1 3YD
Email ruralpayments@defra.gov.uk
Main switchboard 03000 200 301
(Official correspondence only)
Find out about call charges at www.gov.uk/call-charges