There has been recent reporting in the media and on social media around Natural England’s role in delivering the Nutrient Mitigation Scheme.
Natural England has a statutory duty to support sustainable development. We work with developers and planning authorities to support the building of new homes and help them comply with environmental law.
How the Nutrient Mitigation Scheme works:
Nutrient pollution is an urgent problem for freshwater habitats and estuaries which provide a vital home to many species including wetland birds, fish, and insects. Increased levels of nutrients such as nitrogen and phosphorus can disrupt natural processes and harm wildlife.
Since the implementation of nutrient neutrality in 2019 the private market has been developing to meet the new market need. In 2022 this market was not developing quickly enough to enable new homes, so the government directed Natural England to establish the Nutrient Mitigation Scheme.
Natural England’s Nutrient Mitigation Scheme helps developers secure planning permission for homes in areas affected by high levels of nutrient pollution. It does this by enabling developers to buy “nutrient credits”. These credits can come from land use change or projects that create new wetlands or woodlands, which help soak up and reduce nutrient pollution. This means new homes can be built without increasing pollution in protected rivers and lakes.
Natural England also has a statutory duty to advise local planning authorities on how nutrient pollution can be reduced. However, local planning authorities make the final decisions on planning applications.
This scheme operates to the same set of standards expected in the private market. Despite some growth in the private market remain clear gaps remain when it comes to tackling nutrient impacts in some parts of the country. When the Planning and Infrastructure Act passed into law in 2025, the government reinforced the need for public sector intervention, tasking Natural England with the development of Environmental Delivery Plans to address nutrient pollution starting from 2026.
Claim: Natural England’s Nutrient Mitigation Scheme creates conflict of interest.
Response: We reject this. As with any public body, decisions are taken objectively and in line with our statutory purpose and direction from government.
In accordance with the Direction from the Secretary of State of 28 July 2022, Natural England only intervenes to establish nutrient mitigation schemes itself where there is market failure, prioritising those catchments where interventions will have the most impact in addressing development pressures.
Claim: Natural England is “making money” from Nutrient Neutrality.
Response: In accordance with the Direction from the Secretary of State of 28 July 2022, Natural England only intervenes to establish nutrient mitigation schemes itself where there is market failure, prioritising those catchments where interventions will have the most impact in addressing development pressures. We do this on a cost recovery basis and, as per the rules that apply to public bodies, do not derive a profit.
Claim: Natural England’s dual role as regulator and administrator creates an uneven playing field.
Response: We recognise the risks flagged by Office for Environmental Protection and the need to separate regulatory functions from commercial markets. We are committed to ensuring that Natural England’s advisory and regulatory functions are objective and delivered with high degree of integrity and robust internal governance within decision making.One example of where we have managed this effectively is for District level Licencing, where private operators have been clear that in some places the private market is not commercially viable and alternative delivery models are needed. In this instance we have worked in an entirely complementary way with the private market.
Conclusion
Our ambition is to support nature whilst enabling the building of houses the country needs whilst finding swifter and cost-effective ways for developers to meet their environmental obligations. We are focused on finding the solutions which work for people and nature to enable development to go ahead, and this is a core part of our latest corporate strategy.
Nature recovery and sustainable development must go hand in hand. Thriving nature is essential for our nation’s growth, health and security. Through the Nature Restoration Fund, we can deliver new homes and make it easier for developers to meet their obligations to protect sites and species by investing at scale in nature’s recovery and restoring the natural systems that underpin our prosperity and protect our wellbeing. To read more: Building Britain’s Future: Why Nature and Growth Go Hand in Hand – Natural England
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