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Direct Payments Funding

Volume 669: debated on Thursday 9 January 2020

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 ring-fenced for direct payments and is based on an exchange rate of €1=£0.89092, the same rate as used for direct payments 2019.

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