Guidance

Applicant's guide: Higher Tier Capital Grants 2023

Updated 5 August 2024

Applies to England

1. Important dates and main changes

This guidance was valid for applications made between 5 January and 31 December 2023. Read the agreement holder’s guidance if your agreement started between these dates.

1.1 Scheme changes for 2023

1. Agreement duration has increased for new agreements. For applications received from 5 January 2023, Agreement Holders will have 3 years to complete capital works.
2. Land in a Site of Special Scientific Interest (SSSI) or Scheduled Monument is now eligible for capital items if the land is already covered by an existing Countryside Stewardship or Environmental Stewardship agreement.
3. We are applying more proportionate reductions where claims are received late. Instead of a 100% reduction for being one day late, the reduction will be scaled according to how late the claim is.
4. Capital items which require support from Catchment Sensitive Farming (CSF) are now available in High, Medium and Low Priority Areas for Water and Air Quality.
5. Alternative fence posts material is now allowed for FG9 for agreements that start on or after 5 January 2023 only.

2. About Higher Tier Capital Grants

These grants are standalone capital grants available under CS which can also be used to support and complement CS Mid Tier, Higher Tier, Wildlife Offers and Environmental Stewardship (ES) Higher Level Stewardship.

This is a new scheme which offers 3-year agreements for capital items. It provides additional environmental benefits without the need for a CS Higher Tier agreement.

You can apply for a CS Higher Tier Capital Grants agreement any time after applications open on 5 January 2023.

For applications other than woodland-only, email Natural England at enquiries@naturalengland.org.uk to discuss your CS Higher Tier Capital Grants application before submitting it. Natural England’s advisors will help you to apply for the capital items best suited to your needs.

The Forestry Commission will assess your initial woodland-only application and if you pass the administration checks, your Woodland Officer will work with you to complete a final version.

If you accept an offer for an agreement, you will enter into an agreement with the Rural Payments Agency (RPA).

Applications will remain open until the funding is allocated. You can submit an application for each Single Business Identifier (SBI) that you manage in any calendar year.

New agreements cannot contain parcels that already have capital works that are incomplete or have not received their final payment.

2.1 What grants are available

This scheme offers a selection of specialist Higher Tier capital items to help support our most environmentally significant sites and woodlands.

There are 20 capital items – 8 actual cost items and 12 fixed cost items. You can find more information in section 5.1 and 5.2.

2.2 How applications are assessed

If it appears that the grant is likely to be oversubscribed, RPA will publicise this in advance of the full funding being allocated. This will include giving you 6 weeks’ notice on GOV.UK in advance of this. Prior to this notification, successful applications will be dealt with on a first come first served basis. However, from the point of this notification, remaining applications will be assessed on a competitive basis with those providing higher environmental benefits given priority.

2.3 What the grant cannot pay for

The grant cannot be used to pay for the cost of:

• any capital works started (or materials ordered) before the agreement start date
• planning application fees or other transactional fees
• agent fees or other advisory fees
• meeting legal requirements, including planning conditions and tenancy agreements
• woodland creation for short rotation coppice or short rotation forestry

3. Who can apply and what land is eligible

The CS Higher Tier Capital Grants scheme is open to land managers who are:

• an owner occupier
• a tenant
• a landlord
• a licensor, as long as they have control of all the land and all the activities needed to meet the obligations of the grant for the full duration of the agreement

3.1 Land that is eligible

To be eligible for a CS Higher Tier Capital Grants agreement, land parcels must be entirely within England.

You must have management control of the relevant parcels for 5 years from the agreement start date or have your application countersigned by the landlord (read section 3.3.1).

The following are eligible:

• land parcels included in a Forestry Commission approved Woodland Management Plan (WMP) or Woodland Creation Plan (WCP)
• land in an SSSI or Scheduled Monument, including the boundaries of these sites, but only if it has an existing CS or ES agreement
• land parcels already included in another CS agreement or in an ES Higher Level Stewardship agreement, as long as the same action is not being funded twice, there is sufficient space in the parcel, and the options and items are compatible with each other

3.2 Land that is not eligible

CS Higher Tier Capital Grants cannot be used on:

• developed land and hard standing, including permanent caravan sites and areas used for permanent storage
• land that is already included in certain other schemes or under obligation (read section 3.3)

3.3 Management control: who can apply

You must have management control of all the land and all the activities needed to meet the requirements of the capital items you select for 5 years from the CS agreement start date, including the durability requirement (read section 2.1).

If you do not have full control of the land and all such activities, you must get the written consent of all other parties who have management control of the land and activities for 5 years from the start of the agreement. Read below for more details on how to do this.

3.3.1 Tenants

If you occupy land under a tenancy, including the Agricultural Holdings Act 1986, the Agricultural Tenancies Act 1995 (a Farm Business Tenancy) or equivalent, and you are applying for an agreement in your own name, this land is eligible if you have all of the following:

• security of tenure for at least 3 years from the start of the CS Higher Tier Capital Grants agreement.
• management control of the land for 5 years from the start of the CS Higher Tier Capital Grants agreement. If you do not have this, you must get the countersignature of your landlord as part of your application
• control of all the activities over the land to meet the scheme requirements for the chosen capital items
• the agreement of your landlord before you apply

It is your responsibility to check that by joining CS you do not breach the terms of your tenancy agreement.

If the landlord takes over a CS agreement from you once your tenancy has ended, they must be eligible to do so. For example, they must not be an ineligible public body.

3.3.2 Landlords

If you are a landlord and can show that you have enough management control over the land and activities, you can apply for an agreement on land that has been let to a tenant.

As the Agreement Holder, you must give your tenant a copy of the CS agreement. You may need to provide evidence, if requested, that you have given your tenant a copy of the agreement. It is your responsibility to make sure that your tenant does not breach the terms of the agreement.

3.3.3 Partnerships

If you are in a business partnership, you can apply for CS. The person signing the application must have the appropriate permission levels in the Rural Payments service.

3.3.4 Licensors

If you are a licensor, you can apply for a CS agreement on the land in a licence arrangement. It is your responsibility to make sure that the licensee does not breach the terms of CS.

3.3.5 Licensees

Licensees are usually not eligible for CS as a licence arrangement will not provide sufficient management control of the land to the licensee for the agreement period.

If in practice your licence agreement gives you wider land management responsibilities, this may mean you are a tenant and therefore may be eligible for CS. You must show that you have sufficient management control of the land and activities to be able to apply. See section 3.3.1 for more information about CS for tenants.

3.3.6 Land owned by public bodies

Land owned or run by a public body is in general not eligible for CS.

Land is not eligible if it is owned or run by:

• Crown bodies (including all government departments, executive agencies and trading funds)
• non-departmental public bodies (NDPBs)

See a list of all government departments, agencies and public bodies on GOV.UK.

Land owned by some public bodies is eligible for CS provided the work does not form part of their obligations as a public body.

This includes land owned by:

• local authorities
• national park authorities
• public corporations

Parish councils and former college farms are not considered to be public bodies and so are eligible to apply for CS.

3.3.7 Tenants of land owned by public bodies

If you are a tenant of a public body, you will need to check with your landlord if the land is eligible for CS.

If the land is eligible, you will be eligible for CS, but the public body must countersign your application if you do not have security of tenure. You will not be eligible for funding any work which is already a requirement of your tenancy agreement or any other legally binding obligation.

If the land is not eligible, you will still be eligible for CS if you have security of tenure for the full term of the agreement, including the durability requirement, as the public body cannot countersign the application. You will not be eligible for funding any work which is already a requirement of your tenancy agreement or any other legally binding obligation.

3.4 Land receiving other funding

You cannot use CS to pay for any environmental management for which you are already receiving:

• payment from Exchequer funds
• grant aid from any other public body

You cannot use a CS Capital Grants agreement to fund capital works that you:

• are required to carry out under other legally binding obligations
• are currently receiving funding from other sources for
• have previously received funding for

You may be able to apply for a CS Capital Grants agreement in addition to an existing CS or ES agreement, as long as you follow the rules set out in Section 3.4.2 (Environmental Stewardship) or 3.4.3 (Countryside Stewardship).

We will carry out checks to make sure that capital works are not funded twice from public money.

You must make sure that any work proposed for this grant does not breach the conditions of any other agreement.

3.4.1 Applying for CS where someone else is claiming Basic Payment Scheme (BPS) on the same land (‘dual use’)

In certain circumstances, it is possible for a land parcel to be used by one SBI to claim BPS and that same land parcel to also be included in a CS application submitted by someone else under their SBI. This is known as ‘dual use’.

If you are in a dual use situation you must be able to demonstrate that you are meeting the rules and eligibility requirements of the scheme you are claiming for.

If you are the CS applicant, you have to meet the CS eligibility rules, including having ‘management control’ of the land included in your CS application.

The BPS applicant must show that they have the same land ‘at their disposal’ under the BPS rules (and meet BPS eligibility rules).

If you have an agreement with another person who uses the land to apply for BPS, this does not mean that person has the land at their disposal. It is the rights and responsibilities held in relation to the land, and how they operate in practice, which determine this.

An example of ‘dual use’ is where a landlord has management control of the land for CS while the tenant has the same land at their disposal to claim BPS.

If you are the CS applicant, make sure you have a written record before the BPS application deadline of 15 May 2023 that is signed and dated by both parties. This written record could be a tenancy agreement, a letter, or both, which shows:

• the rights and responsibilities you and the BPS applicant in the ‘dual use’ situation each have for the land
• you have management control of the land and the BPS applicant has the land ‘at their disposal’
• you have given a copy of the CS Agreement Document and the terms and conditions (once you receive them) to the other party and that they must meet the terms and conditions (unless you can show that you are carrying out the required activities)

You must also make sure that the ‘dual use’ land parcels are linked to both SBIs in the digital maps in the Rural Payments service. The BPS applicant may need to transfer the land parcels to you using an electronic or paper RLE1 form. Read about how to do this in the RLE1 guidance on GOV.UK.

You may want to get independent professional advice, especially if you previously had a verbal agreement (rather than a written agreement) with the other party.

3.4.2 Environmental Stewardship

Land parcels in Higher Level Stewardship are eligible for Higher Tier Capital Grant agreements.

If you intend to apply for a CS Higher Tier Capital Grants agreement on land parcels in an existing ES agreement, you must make sure:

• there is sufficient space in the parcel
• the same capital works are not being funded twice, and
• the actions required in your existing agreement and your new Higher Tier Capital Grants agreement are compatible with each other

3.4.3 Countryside Stewardship

CS Higher Tier and Mid Tier

You can enter land parcels in an existing CS Mid Tier or Higher Tier agreement into a CS Higher Tier Capital Grants agreement only if all capital works in your CS Mid Tier or Higher Tier agreement have been fully completed and paid for.

If you have finished and been paid for your CS Mid Tier or Higher Tier capital works and want to apply for a CS Higher Tier Capital Grants agreement on those land parcels, you must make sure that:

• there is sufficient space in the parcel
• the same capital works are not being funded twice
• the actions required in your existing agreement and your new Higher Tier Capital Grants agreement are compatible

You can apply for a CS Higher Tier Capital Grants agreement on land parcels which are not in your CS Mid Tier or Higher Tier agreement, as long as the new capital works do not conflict with your existing agreement.

Wildlife Offers and other CS capital grants

You may have a CS Higher Tier Capital Grants agreement alongside any of the following CS agreements:

• CS Capital Grants
• CS Protection and Infrastructure (all items)
• CS Woodland Tree Health
• CS WMP
• CS Wildlife Offer

You can apply for a CS Higher Tier Capital Grants agreement on the same land parcels as your existing CS capital or Wildlife Offer agreement if:

• there is sufficient space in the parcel
• the same capital works are not being funded twice
• the actions required in your existing agreement and your CS Higher Tier Capital Grants agreement are compatible with each other

You can apply for a CS Higher Tier Capital Grants agreement on land parcels which are not in your existing CS capital or Wildlife Offer agreement provided the new capital works do not conflict with your existing agreement.

You can only apply for one CS Higher Tier Capital Grants agreement per SBI in any calendar year.

3.4.4 Environmental Land Management schemes

Sustainable Farming Incentive (SFI) pilot

You can apply for this CS Higher Tier Capital Grants offer on land parcels included in an SFI pilot standards agreement.

If you want to enter into a CS Higher Tier Capital Grants agreement in addition to your SFI pilot standards agreement, you can have these on the same parcel, or on separate parcels, as long as the actions are compatible with each other.

Sustainable Farming Incentive

The SFI standards do not currently include one-off payments for capital items. You can apply for existing one-off payments for capital items, such as those in CS on land you enter into an SFI standards agreement. If you want to enter into a CS Higher Tier Capital Grants agreement in addition to your SFI standards agreement, you can have these on the same parcel, or on separate parcels, as long as the actions are compatible with each other.

Local Nature Recovery

We will develop an enhanced version of CS for future years, so we achieve the same ambitious outcomes that we intended to deliver through Local Nature Recovery, rather than building a whole new scheme. We will publish more information about the scheme, including how CS agreement holders can take part, later this year. 

Landscape Recovery

Customers with a CS Capital Grants offer can also apply for a Landscape Recovery agreement. Defra will work with Landscape Recovery applicants during the project development phase on how to transition CS agreement holders fully into Landscape Recovery and avoid double funding.

3.4.5 English Woodland Grant Scheme

You can apply for CS items on land parcels covered by an English Woodland Grant Scheme (EWGS) Management Planning Grant and certain capital grants (for example, Woodland Improvement Grant (WIG)) as long as this does not result in you being paid twice for the same items or activities and the CS items do not conflict with any ongoing EWGS requirements.

You cannot apply for CS items on land parcels covered by a multi-annual EWGS agreement, Farm Woodland Payment (FWP), Farm Woodland Premium Scheme (FWPS) or Farm Woodland Scheme (FWS).

3.4.6 Farming Recovery Fund

Land parcels covered by the Farming Recovery Fund are not eligible.

3.4.7 Inheritance Tax or Capital Gains Tax exemption

CS options and capital items may be available on land designated by HM Revenue & Customs (HMRC) as conditionally exempt from Inheritance Tax or as the object of a Maintenance Fund, depending on the specific undertakings and proposed options or capital items. Read Inheritance Tax and Capital Gains Tax exemption: Countryside Stewardship to find out whether capital items available under the CS Higher Tier Capital Grants are always eligible, never eligible, or need checking.

3.4.8 CS cannot fund works that form part of these or similar schemes or grants

These include:

• Countryside Productivity
• Growth Programme
• LEADER
• Water Environment Grant
• Farming in Protected Landscapes
• Woodland Carbon Fund
• HS2 Woodland Fund
• Farming Investment Fund
• England Woodland Creation Offer

4. How to apply for a Higher Tier Capital Grants

Find out how to apply for a Countryside Stewardship (CS) Higher Tier Capital Grants and the evidence and consents you’ll need.

4.1 Check you’re registered

Register your land on the Rural Payments service if you have not already done so and prepare your application. Application documents are available on GOV.UK.

4.2 Ways to apply

Submit your application to RPA by email or by post using the CS Higher Tier Capital Grants application form. Use the how to complete your Higher Tier Capital Grant application by email or post guidance to help you.

For applications other than woodland-only, email Natural England at enquiries@naturalengland.org.uk to discuss your CS Higher Tier Capital Grants application before submitting it. Natural England’s advisors will help you to apply for the capital items best suited to your needs.

The Forestry Commission will assess your initial woodland only application and if you pass the administration checks, your Woodland Officer will work with you to complete a final version.

4.3 Business viability test

We will check all applications against an insolvency register. If we assess your application as not financially viable, we may not offer you an agreement.

For applications including capital expenditure of over £50,000 in total, you must submit a statement from a registered accountant (for example, a chartered accountant or certified accountant). This is to confirm that the business or SBI has the resources from trading profits, reserves or loans to undertake the work in the proposed agreement schedule.

Where confirmation from an accountant is needed, the accountant will need to provide a letter on headed paper which confirms:

• they are a registered chartered accountant
• they act as the accountant for the applicant or have been contracted to act on behalf of the applicant
• they can confirm that you as the applicant have sufficient finances to complete the capital works in your application and how these funds will be sourced (for example, savings or loan)
• their understanding of the total value of the capital works in the application

Applications involving capital expenditure over certain limits will require additional evidence and undergo additional checks.

4.4 Getting consent

If any consents are needed, you are responsible for arranging all relevant consents, permissions, exemptions, and any written advice needed for your application as set out in sections 4.4.1 to 4.4.5. We may ask to see this evidence.

4.4.1 Planning consent

Your local planning authority can give you informal advice on whether a proposal needs planning consent. There is also general guidance on planning permission for farms available.

You do not need to provide evidence of whether planning permission or consent is needed with your application. However, if required, you will need to have permission or consent in place before you carry out any work, and you will need to submit this evidence when you make a claim for this work.

You will need to check if any permissions or consents are needed before you begin any work. There is also general planning practice guidance available.

4.4.2 Site of Special Scientific Interest (SSSIs) (including National Nature Reserves)

Work on land in an SSSI will need consent and you must contact Natural England as early as possible when you are getting your application ready. For further information on SSSI consents go to give notice and get consent for a planned activity on a SSSI on GOV.UK.

4.4.3 Scheduled Monuments

Your local Historic England officer can provide advice on any management or changes needed to maintain or bring the monument into favourable condition. You will also need Scheduled Monument Consent from the Government (advised by Historic England) for some of the chosen work (such as fencing and gateways).

In these situations, you must speak to Historic England to see whether consent is needed, or how to go about works to avoid or reduce negative impacts on the Scheduled Monument.

If your proposals are about any of the following, Historic England can advise whether they are likely to be acceptable:

• registered parks and gardens
• registered battlefields

4.4.4 Other consents

You may need to apply for other consents even if you do not need planning consent. If you do, you must keep this evidence as we may ask to see it. Examples of areas where consent is likely to be needed includes where the work affects:

• protected species (as defined by the Wildlife & Countryside Act 1981)
• registered parkland
• registered battlefield
• watercourse or highway areas subject to a Tree Preservation Order (TPO) – a licence may be needed for any changes to trees and hedges

For consents which affect protected species you may need to plan around seasonal activity. If this is the case, it’s important you arrange the consents well in advance.

If the work affects priority habitats (which may not be SSSIs), you may need to consider the impact on these even if you do not need consent.

4.4.5 Work on trees and hedges

You may need permission for work on trees that are under a TPO. If this applies to you, contact your Local Authority or National Park Authority. Read more information on TPOs and trees in conservation areas on GOV.UK.

You may need a Forestry Commission Felling Licence to remove trees or manage hedges. This applies whether they are in woodland or not.

You can fell up to 5m³ and sell up to 2m³ of timber without a felling licence each calendar quarter. If you plan to fell or sell more, you must get a felling licence before your agreement offer can be issued. Read more information about tree felling licences on GOV.UK.

You do not need to provide evidence of any TPO permission or a felling licence with your application. If required, you will need to have the consent before you carry out any work. You will need to submit this when you make a claim for this work.

4.4.6 Other considerations

When you carry out work under the agreement, remember that you must not breach any other rules or laws, such as:

• breaking domestic legislation or byelaws
• obstructing public rights of way
• blocking or restricting access to ‘open access’ land
• affecting oil or gas pipelines

4.5 Submit your application and supporting documents

Submit your application by email or post. A complete application is made up of:

• an application form
• an application map
• a land ownership and control form, if applicable
• any other supporting documents we ask for

Use the guidance on how to complete your Higher Tier Capital Grant application by email or post to help you submit your application.

If required, you will need to have permission or consent in place before you carry out any work. You will need to submit this evidence when you make a claim for this work.

4.6 After you apply

Once we have received your application, we will check that:

• you meet the eligibility requirements
• you have entered all the necessary details on your application form
• you have sent all the necessary evidence including maps, photographs and consents

If your application is successful, we will send you an agreement offer letter.

You can find more information about entering into an agreement at section 6.1 of the Higher Tier Capital Grants agreement holder’s guide.

If your application is unsuccessful, we will let you know why we rejected it. You will have the right to appeal, as set out in section 7.10 of the agreement holder’s guide.

5. Choosing CS Higher Tier Capital Grants items

This scheme offers a selection of specialist Higher Tier capital items to help support our most environmentally significant sites and woodlands.

There are 25 capital items – 8 actual cost items and 17 fixed cost items.

Use Countryside Stewardship grants (known as the ‘grant finder’) to read a description and essential requirements for each capital item. This includes eligibility and evidence requirements.

For an actual cost item, you will need to ask suppliers for quotes and we will pay you either the full amount or a proportion of that. For fixed cost items, we pay a specific rate to help support the cost of each item. More details are provided in sections 5.1 to 5.2.

5.1 Actual cost capital items

You need a minimum of 3 quotes in writing for actual cost capital items. You must submit these quotes with your application.

In exceptional circumstances where the work is specialised, RPA may accept fewer than 3 quotations. This must be agreed in writing with them before you apply for an agreement.

A Natural England advisor or Forestry Commission Woodland Officer (depending on the type of application) will discuss the contribution towards the costs of the work with you and will confirm this in writing. They will tailor each capital item to the requirements of the feature. The specifications are likely to include:

• technical design drawings to illustrate the extent of the work or schedule of works to provide an itemised list of the component parts and process for implementation
• a description of the standard to which each category of work is to be carried out

5.2 Actual cost items

Code	Capital item name	Capital item percentage of cost
AC1	Access capital items	Up to 100% of actual costs
FM1	Management of geodiversity features	Up to 100% of actual costs
FM2	Major preparatory works for priority habitats (creation and restoration) and priority species	Up to 100% of actual costs
HE1	Historic and archaeological feature protection	Up to 100% of actual costs
LV2	Livestock handling facilities	Up to 80% of costs
RP8	Constructed wetlands for the treatment of pollution	50% of costs
SB2	Scrub control on difficult sites	Up to 80% of costs
WN7	Restoration of large water bodies	Up to 100% of actual costs

5.3 Fixed cost items

Code	Capital item name	Capital item payment rate
FG5	Fencing supplement – difficult sites (this item can only be applied for with FG7, FG8 and FG9)	£3.98 per metre
FG7	Anti-predator combination fencing	£13.76 per metre
FG8	Anti-predator temporary electric fencing	£2.84 per metre
FG9	Deer fencing	£10.27 per metre
FG10	Temporary deer fencing	£8.09 per metre
FG11	Deer exclosure plot	£212.56 per unit
FY1	Deer high seat	£265 per unit
LV1	Cattle grid	£2,878.80 per item
SB1	Scrub control and felling diseased trees	Between £375 and £2,424 per hectare depending on method of removal, stem diameter and % ground cover. See item guide for more information
SB3	Tree removal	£155.17 per tree
SB5	Mechanical bracken control	£190.90 per hectare
SB6	Rhododendron control	£3,500 per hectare to £5,500 per hectare depending on slope of site and height of plant
TE13	Creation of dead wood habitat on trees	£285.58 per tree
WN1	Grip blocking drainage channels	£19.06 per block
WN2	Creation of scrapes and gutters	£2.23 per square metre
WN3	Ditch, dyke and rhine restoration	£5.72 per metre
WN4	Ditch, dyke and rhine creation	£13.63 per metre

Annex 1: Terms and Conditions

See the CS Terms and Conditions 2023.

Annex 2: Contact details

Contact Rural Payments Agency (RPA)

You can contact RPA by email, phone or post.

Rural Payments Agency (CS)
PO Box 324
Worksop
S95 1DF

Email: ruralpayments@defra.gov.uk

Telephone: 03000 200 301
Monday to Friday, 8:30am to 5pm, except bank holidays
Find out about call charges

For Higher Tier only: To request pre-populated applications forms:

• use the Rural Payments service
• email or call us

Please quote your single business identifier (SBI) and agreement number in all enquiries.

Contact Natural England

You can contact Natural England by email, phone or post.

Natural England
County Hall
Spetchley Road
Worcester
WR5 2NP

Email: enquiries@naturalengland.org.uk

Telephone: 0300 060 3900
March to September: Monday to Friday, 10am to 4pm, except bank holidays
October to February: Monday to Friday, 10am to 3pm, except bank holidays
Find out about call charges

Contact other organisations

You may also need to:

• contact the Forestry Commission
• contact Historic England
• contact Catchment Sensitive Farming (CSF)