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Direct Payments Funding

Treasury written statement – made on 9th January 2020.

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Photo of Rishi Sunak Rishi Sunak The Chief Secretary to the Treasury

The Treasury has confirmed £2,852 million of funding across financial years 2020/21 and 2021/22 to replace funding from the European Union and allow delivery of Direct Payments 2020 for farmers at the same level as the 2019 scheme.

The 2020 Direct Payment scheme across the EU is funded from the next Multiannual Financial Framework, which means that in the UK, the 2020 scheme will be funded domestically by the UK government. To provide certainty for farmers, the Department for the Environment, Food and Rural Affairs and the devolved administrations, the Treasury has announced that the following funding will be allocated:

  • £1,751 million in 2020/21 and £92 million in 2021/22 for the Department for the Environment, Food and Rural Affairs;
  • £449 million in 2020/21 and £24 million in 2021/22 for the Scottish Government;
  • £231 million in 2020/21 and £12 million in 2021/22 for the Welsh Government; and
  • £279 million in 2020/21 and £15 million in 2021/22 for the Northern Ireland administration.

This funding will be ringfenced for Direct Payments and is based on an exchange rate of €1 = £0.89092, the same rate as used for Direct Payments 2019.

This statement has also been made in the House of Lords: HLWS24