BPS De-Linked Payments Update

BPS Delinked payments replaced BPS in England and are set to continue until the end of 2027. These payments will be determined based on the average BPS payment received by each business from 2020 to 2022, providing a more simplified approach to agricultural funding.

Following the announcement in October 2024 this information confirms the position and proposed the payment of the remaining BPS De-linked payments for 2025.

For 2025, the government plan to reduce delinked payments by the percentages in the following table. These percentages will be set in new regulations, which are expected to come into force by the end of July 2025, following parliamentary approval.

 

 

 

 

 

The reductions will be applied to your reference amount not your 2024 payment.

Example 1:

Reference amount £20,000 will have a 76% reduction applied- (reduction of £15,200) therefore payment of £4,800.

Actual 2024 payment for the above reference amount was £10,000

Example 2:

Reference amount of £40,000 will have a 76% reduction to the first £30,000 (reduction of £22,800) a 100% reduction will be applied to the next £10,000 (reduction of £10,000) therefore payment of £7,200

Actual 2024 payment for the above reference amount was £19,500

Payments will now be made in one instalment from 1st August 2025 rather than being split into two payments as they were previously.

 

Posted by Vickers & Barrass on February 21st, 2025

Agriculture

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Vickers & Barrass

Rural Chartered Surveyors offering professional land agency services in the North East.