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 | £66,000 | £132,000 |
| Tier A3 | High distinctiveness habitats | £125,000 | £250,000 |
| Tier A4 | Very high distinctiveness habitats | £350,000 | £700,000 |
| 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 £125,000 per credit; SRM applies; effective cost is 4 x 125,000 x 2 = £1,000,000. The same delta delivered through Environment Bank or Nattergal at £70,000 mid-rate clears at £280,000. The 3.5x premium is the credit-design penalty.
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]