4. What consideration has the Minister given to bringing forward the window for early payments under the basic payment scheme? OQ58092

Thank you. Once again, my intention is to make early advance payments in October. To continue supporting farmers, I am launching a number of new schemes this year, whilst also continuing the basic payment scheme and Glastir through until the end of 2023. 

I draw Members' attention to my declaration in the Members' interests log. Minister, other parts of the United Kingdom have brought forward the window for payment to July. You highlighted in an earlier response to a question that, actually, instead of three Fs, there needs to be five Fs, and one of those Fs was finance. It's critical that cash flow goes through farming businesses, especially with the busy autumn period coming up now, to purchase seed and breeding stock. Would you entertain any consideration about bringing the window forward, even to July? I heard what you said about October, but now that we've left the European Union, you have the ability to bring that window forward even sooner, and getting that finance into farm bank accounts is in the gift of your good self as Minister. So, could I urge you to give consideration to that, Minister?

I think it's fair to say that the announcement by the UK Government to bring forward a 50 per cent advance BPS payment in England is just really a sticking plaster to the much bigger issue of the cost-of-living crisis. It's also really important, and you will know better than anyone—the BPS budget in the UK has had a large reduction, and it was only reduced last year, and also, this year now, it's been cut by over 20 per cent, so a massive reduction in the BPS budget in England. As you know, I consulted on simplification to the BPS back in 2020, and agreed the farming industry's proposal to make advanced payments at 70 per cent of claim value in October, with balances due in December. We introduced that last year for the first time, and, as I say, I will be doing it this year. 

I've also given Welsh farmers cash flow certainty by introducing, as I say, the payment last year, but also, maintaining the BPS budget at £238 million for this year. I have to say, if you talk to our stakeholders, they've told me they'll be watching DEFRA very closely because they do think it's a sticking plaster. They are very pleased that we've given them stability and confidence by the work that we've done around the BPS. It's a good opportunity, this close to the date, to remind people that the final deadline to claim or apply for BPS is 10 June, and I want to ensure all claims are properly considered before we make advanced payments, and I don't want to risk incorrect payments for the sake of a headline.