Full schedule
| Tier | Applies to | £ / credit | Effective (SRM x2) |
|---|---|---|---|
| Tier A1 | Low and medium distinctiveness habitats | £42,000 | £84,000 |
| Tier A2 | Medium to high distinctiveness habitats | £48,000 | £96,000 |
| Tier A3 | High distinctiveness habitats | £66,000 | £132,000 |
| Tier A4 | Very high distinctiveness habitats | £125,000 | £250,000 |
| Tier A5 | Highest-distinctiveness irreplaceable habitats | £650,000 | £1,300,000 |
| Hedgerow | Hedgerow units (per credit) | £44,000 | £88,000 |
| Watercourses | Watercourse units (per credit) | £230,000 | £460,000 |
Why the price is deliberately punitive
The Spatial Risk Multiplier (SRM) for statutory credits is fixed at 2; a developer must therefore buy two credits per biodiversity unit required. A Tier A1 credit at £42,000 produces an effective £84,000 floor per unit. The design intent is to keep statutory credits as a backstop of last resort, not a substitute for off-site supply.[S3]
When the developer is compelled to buy
Compelled purchase arises where the trading rules cannot be satisfied locally: no available off-site units in the LPA or neighbouring NCA at the right distinctiveness band; or insufficient on-site delivery to meet the 10% uplift after all multipliers. The compulsion is procedural, not discretionary.[S1]
Worked example
A scheme requires 4 BU at high distinctiveness with no compliant off-site supplier. Tier A3 lists at £66,000 per credit; SRM applies; effective cost is 4 x 66,000 x 2 = £528,000. The same 4 BU delivered off-site at the Feb 2026 market mid-rate for high distinctiveness (around £70,000 per unit, within the published £45,000 to £110,000 range) clears at £280,000.[S8] The 1.9x premium is the credit-design penalty. Named operators such as Environment Bank and Nattergal quote bespoke rather than publishing a per-unit rate, so treat £70,000 as a market triangulation, not a quoted price.
Revenue flow into Nature Recovery
Credit revenue flows into the Nature Restoration Fund (NRF) for habitat creation aligned to Local Nature Recovery Strategies; Defra published a consultation on NRF structure that closed earlier in 2026 with implementation pending.[S2]
How you actually buy statutory credits
Statutory biodiversity credits are sold by Natural England on behalf of Defra through the GOV.UK buy statutory biodiversity credits service; there is no private marketplace and no third-party reseller. You cannot use an agent or representative to buy them on your behalf, and you can only use them as a last resort once on-site and off-site delivery have been exhausted.[S17]
The process is: submit the application with your completed statutory metric calculation and development details; pass customer due-diligence and anti-money-laundering checks (initial checks take about 4 weeks, up to 8 weeks in total if further verification is needed); receive a proforma invoice and pay; then get proof of purchase to submit to your planning or discharging authority.[S17] From 2 November 2026 the scheme also covers nationally significant infrastructure projects.[S9]
Common questions
How much does a statutory biodiversity credit cost?
Tier A1 (low and medium distinctiveness) is £42,000 per credit, rising through A2 £48,000, A3 £66,000, A4 £125,000 to A5 £650,000. Hedgerow credits are £44,000 and watercourse credits £230,000. The schedule was last updated on 2 June 2026 and the tier prices are unchanged since 2023.[S3]
Why is the real cost double the headline price?
A fixed Spatial Risk Multiplier of 2 applies to statutory credits, so a developer must buy two credits for every biodiversity unit required. That makes a Tier A1 credit an effective £84,000 floor per unit; the doubling is a deliberate design penalty to keep statutory credits a last resort.[S3]
Where do you buy statutory biodiversity credits, and are they for sale privately?
They are not for sale on the open market. The only seller is Natural England, acting for Defra, through the GOV.UK buy statutory biodiversity credits service. Off-site units from registered habitat banks are a separate, usually cheaper market; statutory credits are the compelled backstop only.[S17]
How long does it take to buy statutory credits?
Natural England aims to complete initial checks within about 4 weeks of receiving an order, and up to 8 weeks in total where more checks are needed, before issuing a proforma invoice for payment.[S17]