Defra's 29 June announcement opens nearly £50 million of peatland funding across England, with three application routes aimed at water management, wetter farming and restoration capacity. According to the department, the package is intended to cut carbon emissions, reduce wildfire and flood risk, and support rural economic activity. Nature Minister Mary Creagh presented it as a mix of better water management on farms, new wetter farming models and local skills for restoration. Issued after London Climate Action Week, the announcement is framed as delivery rather than a fresh round of target-setting.
Defra's case for intervention rests on the condition of England's peat soils. The department says peat stores more than half of England's terrestrial carbon, yet about 80% of peatland is dry and degraded after long periods of drainage for agriculture and other land uses. When peat dries, organic matter decomposes and releases carbon. Re-wetting and restoration therefore serve several policy purposes at once: emissions reduction, water retention, habitat recovery, drought resilience and lower downstream flood pressure. The government's long-term target remains 280,000 hectares restored by 2050, and these grants sit within the wider 2026-2030 Peat Programme, valued at about £85 million. Defra says the programme also sits alongside the Lowland Peat Water Discovery Grant, the Nature for Climate Peatland Grant Scheme and the England Peat Map.
The largest element is the £36 million Lowland Peat Water Implementation Grant, to be delivered by the Environment Agency. Defra says the fund will support local water projects and physical works that raise and manage water tables in lowland peat soils. In practice, this is an infrastructure scheme for places where farming continues but drainage patterns need to change if peat is to be protected. The official announcement points to earlier pilots in the Fens, Somerset Levels and Yorkshire, where water control measures helped retain more water in peat while also managing flood risk. Tony Grayling, the Environment Agency's director of nature and place, described the scheme as a route for farmers and land managers to invest in long-term peat protection. Applications are open on GOV.UK until 18 September.
The second route is the £10 million Paludiculture and Wetter Farming Fund, delivered by Natural England. This scheme backs research into crops that can be grown and harvested on wetter peat, alongside work to develop viable markets for those outputs. This matters because lowland peat policy is moving beyond a simple choice between full drainage and full withdrawal from production. Defra and Natural England are testing whether wetter farming can keep land economically active while reducing peat loss. The department cites trials in which wetland plants and bulrush were turned into building materials and jacket insulation. Sarah Dawkins, Natural England's deputy director of peatland restoration, said the fund is intended to bring together businesses, land managers and communities. Applications close on 23 August through Defra's eCommercial portal.
The third route, the £1.15 million Peatland Restoration Sector Capacity Grant, is smaller in cash terms but important for delivery. Administered by Defra, it funds training, apprenticeships, equipment and community engagement intended to expand the workforce available for peat restoration. This addresses a recurring implementation problem. Restoration targets depend not only on capital funding, but on contractors, advisers, field staff and local organisations able to plan and carry out work. Where projects are already planned or under way, extra capacity could shorten lead times and improve continuity. Applications for this grant close on 23 July through the government's Find a Grant service.
Taken together, the three schemes show a differentiated approach between lowland farmed peat and peat areas already moving into restoration. In productive lowland areas, the priority is water-level management and land use that reduces peat oxidation without assuming farming will stop. In other areas, the emphasis is on skills, equipment and local delivery capacity. That split is consistent with the government's Land Use Framework and the Environmental Improvement Plan, both of which support combining food production, nature recovery and climate action on the same land where possible. Defra's announcement also states that the measures are intended to safeguard productive farming on valuable agricultural land, strengthen food security and support the rural economy.
For land managers, the announcement creates three immediate questions: whether existing drainage and water control systems are compatible with peat protection, whether wetter crop models are commercially credible, and whether local restoration projects have the labour and equipment to scale. For local authorities, Internal Drainage Boards and water companies, the funding creates a clearer route into partnership work on water management and catchment planning. The delivery structure is also notable. The Environment Agency, Natural England and Defra are each responsible for different parts of the programme, with support from the Association of Drainage Authorities and engagement expected from farming bodies, environmental organisations, innovators and restoration partnerships. The policy direction is now clear; the immediate test is take-up before the first deadline on 23 July, followed by 23 August and 18 September.