Basic Payment Scheme - Payment reductions confirmed for 2021 to 2027
Basic Payment Scheme - Payment reductions confirmed for 2021 to 2027
It has now been confirmed how Direct Payments are to be phased out in England from 2021 to 2027. Reductions to BPS payments will start from 2021 and are to be reduced progressively until 2027. The reductions are to apply to the total payment the farmer would have received each year and are to work in a similar way to income tax bands, with bigger reductions for the higher payment bands.
The reduction in payment will also to apply to delinked payments when these replace BPS.
Payments will be reduced by the following percentages in 2021-2024:
Payment Band
Scheme Year
2021
2022
2023
2024
Up to £30,000
5%
20%
35%
50%
£30,000 to £50,000
10%
25%
40%
55%
£50,000 to £150,000
20%
35%
50%
65%
£150,000 <
25%
40%
55%
70%
To further explain this, the following table shows how payments will be reduced from 2021 to 2024 based on the payment value before the reductions.
Payment value before progressive reductions
2021 payment
2022 payment
2023 payment
2024 payment
£5,000
£4,750
£4,000
£3,250
£2,500
£10,000
£9,500
£8,000
£6,500
£5,000
£20,000
£19,000
£16,000
£13,000
£10,000
£40,000
£37,500
£31,500
£25,500
£19,500
£80,000
£70,500
£58,500
£46,500
£34,500
£160,000
£134,000
£110,000
£86,000
£62,000
As an example, in 2021 for an income of £80,000 before reductions, the calculations are as follows:
Band 0 - £30,000: £30,000 at 5% = £1,500 reduction
Band £30,000 - £50,000: £20,000 at 10% = £2,000 reduction
Band £50,000 - £80,000: £30,000 at 20% = £6,000 reduction
Total reduction £9,500
£80,000 minus £9,500 = £70,500
We will keep you updated but if you do have any queries, please call Hennie Carter or Georgina Bush on 01285 883740.
Things that Go Bang in the Night – Halloween & Guy Fawkes in the Cotswolds!
The Cotswolds offer endless activities for all ages in the run up to Halloween and Bonfire Night celebrations the following weekend, from scary attractions, and pumpkin carving to big bangs, bonfires and fireworks!
Things that Go Bang in the Night – Halloween & Guy Fawkes in the Cotswolds!
Cotswold Residential Market - Stow-on-the-Wold – Helen Whitfield
The residential market around Stow-on-the-Wold has been incredibly active during this current period of political uncertainty, and there have been some notable sales. Many properties are still selling privately under competitive bidding. That being said, the headline guide price needs to be realistic, and the best results are still on the turnkey properties.
Cotswold Residential Market - Stow-on-the-Wold – Helen Whitfield
Ben Way, Head of Butler Sherborn Equestrian - Rounds Up the Eventing Season 2024 with Badminton Qualification
As we head into October, the 2024 eventing season is drawing to a close, with the last couple of events left to go for some of the younger horses. Many of the older horses have already started their winter holidays, where they get an eight week break out in the fields.
Ben Way, Head of Butler Sherborn Equestrian - Rounds Up the Eventing Season 2024 with Badminton Qualification
Burford Residential Property Market by Katy Freeman - Head of Sales, Butler Sherborn, Burford Office
The Burford area, already known for its scenic beauty and charm, has gained significant attention recently due to high-profile developments nearby. Jeremy Clarkson’s new establishment, The Farmer’s Dog, located a short distance from Burford, has drawn in a new wave of interest, increasing awareness of the area's appeal.
Burford Residential Property Market by Katy Freeman - Head of Sales, Butler Sherborn, Burford Office
