Biodiversity net gain (BNG) statutory credits report: 1 April 2025 to 31 March 2026
Updated 15 June 2026
Applies to England
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Headline summary
Total income received from biodiversity net gain (BNG) statutory credits for development under the Town and Country Planning Act (TCPA) during the period from 1 April 2025 to 31 March 2026 was £426,100.
Income from the sale of statutory credits funded an investment of £530,000 in habitat creation and biodiversity enhancement through procurement of registered biodiversity net gain (BNG) units.
Scope of report
This report is the third annual report since mandatory biodiversity net gain (BNG) was introduced in February 2024 which fulfils the Secretary of State’s reporting duty under section 101(8) of the Environment Act 2021.
This report refers to the sale and expenditure of statutory credits.
Credits sales – overview
The total value of statutory credit payments received in the 2025 to 2026 financial year was £426,100.
This shows an increase in the value of credit sales from the first financial year of the policy’s operation (£212,920). However, the overall level of receipts remained relatively low. This indicates BNG policy continued to operate as expected, with statutory credits being used for their intended purpose as a last resort backstop for developers.
Credit sales – expenditure on nature enhancement
Income from the sale of statutory credits funded an investment of £530,000 in habitat creation and biodiversity enhancement through procurement of registered biodiversity net gain (BNG) units through an open market tender. Purchasing BNG units represents an efficient method to deliver habitat improvement at landscape scale while supporting the maturation of the offsite BNG unit marketplace.
The government was pleased by the level of interest in this tender from a wide range of suppliers of BNG units. The most advantageous tender was selected in line with the published criteria (biodiversity net gain units procurement - find a tender) and the government secured 44.6 BNG units, representing highly distinctive “grassland – floodplain wetland mosaic habitat” in Lincolnshire. Habitat will be maintained for a minimum of 30 years, secured under a conservation covenant.
Natural England incurred £76,306 in costs related to administering sales of statutory credits in 2025 to 2026.
As of 31 March 2026, £32,714 of statutory BNG credit income remained unspent.