Capital Grant Scheme – Re-Opening in July 2026
May 2026
The Capital Grant Scheme is a three year capital works programme designed to support landowners in delivering infrastructure improvements that provide clear environmental benefit. Through the scheme, applicants are able to complete eligible works and reclaim funding via lump sum grant payments.
DEFRA have confirmed that the Capital Grant Scheme is to return in July 2026 for another round of applications. As in previous rounds, funding caps will remain in place, with up to £25,000 available for water quality items such as fencing, and up to £35,000 for boundary restoration works. Following the latest guidance issued today, 28th May 2026, payment rates have now been released and appear to remain consistent with previous years.
It is prudent at this stage for applicants to begin preparing in advance. This includes ensuring any previous claims are completed and closed off, checking that business and land details held on the RPA are fully up to date, and confirming that all digital mapping is accurate. Where applications may exceed £50,000, applicants should also begin preparing appropriate financial evidence in readiness for submission.
It is also important to note that agroforestry items have been removed from the Capital Grant Scheme for this round; however, these are expected to be made available under a higher tier later this year. This comprises the only major change from previous rounds.
DEFRA have confirmed a change in approach for the 2026 round. Once the application window opens, updates will be provided via the online blog at key stages when approximately 25%, 50% and 75% of the available funding has been allocated, providing clearer visibility on remaining budget levels. This represents a more transparent approach compared to previous rounds.
All scheme guidance is available online. If you would like support with preparing an application or reviewing eligibility and potential applications GTH’s rural team across the West Country are ready to answer any questions and help you navigate through these ever-changing grants and subsidies, offering expertise, strategic insight, and providing practical support. For more information, get in touch with your local rural office or email [email protected].
DEFRA have confirmed that the Capital Grant Scheme is to return in July 2026 for another round of applications. As in previous rounds, funding caps will remain in place, with up to £25,000 available for water quality items such as fencing, and up to £35,000 for boundary restoration works. Following the latest guidance issued today, 28th May 2026, payment rates have now been released and appear to remain consistent with previous years.
It is prudent at this stage for applicants to begin preparing in advance. This includes ensuring any previous claims are completed and closed off, checking that business and land details held on the RPA are fully up to date, and confirming that all digital mapping is accurate. Where applications may exceed £50,000, applicants should also begin preparing appropriate financial evidence in readiness for submission.
It is also important to note that agroforestry items have been removed from the Capital Grant Scheme for this round; however, these are expected to be made available under a higher tier later this year. This comprises the only major change from previous rounds.
DEFRA have confirmed a change in approach for the 2026 round. Once the application window opens, updates will be provided via the online blog at key stages when approximately 25%, 50% and 75% of the available funding has been allocated, providing clearer visibility on remaining budget levels. This represents a more transparent approach compared to previous rounds.
All scheme guidance is available online. If you would like support with preparing an application or reviewing eligibility and potential applications GTH’s rural team across the West Country are ready to answer any questions and help you navigate through these ever-changing grants and subsidies, offering expertise, strategic insight, and providing practical support. For more information, get in touch with your local rural office or email [email protected].