New Capital Grants guidance published – what applicants need to know
Early preparation and complete evidence submissions will be vital to secure funding in 2026. Learn more ahead of the July application window
Following on from our March update on the 2026 Capital Grants offer, Defra has now published the full scheme guidance ahead of the application window opening in July.
The overall structure remains largely unchanged; however, there are some adjustments to the scheme which are set out below.
What's remained the same?
The core elements of the scheme remain consistent with previous years. Capital Grants will continue to fund a wide range of environmental improvements, from hedgerow and tree planting through to water and air quality interventions, organised across the same six categories:
- Boundaries, trees and orchards
- Improved water quality
- Improved air quality
- Improved natural flood management
- Assessments
- Improvements
Funding limits and the ‘one application per Single Business Identifier (SBI)’ rule remains unchanged. Demand is expected to exceed the available budget (£225m) again this year and Defra has reiterated that it will provide updates as funding is allocated, but the scheme will close once the budget is fully allocated.
What’s changed?
Items available
The overall number of items has increased slightly to around 80, and while much of the offer remains familiar, there are some adjustments. A small number of new items have been introduced, including:
- Fruit tree planting as a standalone option (distinct from previous agroforestry items)
- Tree surgery to hinge trees into watercourses
- Countryside educational access visits accreditation, and signage installation and maintenance
- Pond creation and restoration for biodiversity
TE6 (tree guard – tube and mesh) has been replaced by TE19 (tree guard – narrow weld mesh), and the names and specifications for tree guard items TE7 and TE8 will also be updated when the scheme opens.
Agroforestry items and woodland condition assessments have been removed from this offer and will instead be available through a Higher Tier Capital Grants offer later in the year.
For the full list of available items members should consult part 5.2 of the Capital Grants 2026 applicant’s guide. More detailed information and the specific requirements for each item can be found on the grant finder.
Evidence required
The most important practical change for 2026 is the increased emphasis on submitting fully evidenced applications from the outset.
Defra is seeking to prevent delays caused by incomplete applications, and applicants are now expected to provide all required supporting information at the point of submission.
The guidance clarifies that applicants must submit all supporting documentation within 10 working days of submitting their application.
Next steps
Those with complete, well‑designed applications ready to submit early are likely to be best placed to secure funding.
For CLA members, the key message is consistent with our earlier advice: preparation ahead of the Capital Grants window opening will be vital
The practical actions set out in our previous blog – such as ensuring mapping is up to date, securing necessary permissions, and gathering supporting evidence – remain relevant. You can also find further information in this recent Defra blog.
The CLA will issue a further update to members once the application window opening date is known.
If you have any questions, please contact Anna Novis or Susan Twining in the Land Use Team on anna.novis@cla.org.uk / susan.twining@cla.org.uk.
