Welsh Ministers have made the Basic Payment Scheme (Tapering, Payment Entitlements and Closure) (Wales) Regulations 2025 (WSI 2025/1282). Made on 3 December 2025 and applying in relation to Wales, the instrument comes into force on 1 January 2026, with certain revocation provisions commencing on 1 January 2029.
Using powers in section 16(1) of the Agriculture (Wales) Act 2023 and approved by Senedd Cymru, the Regulations set the statutory route to end the Basic Payment Scheme established under Regulation (EU) No 1307/2013. The policy objective is to bring direct payments in Wales to a formal close by the end of 2028, replacing rule‑making obligations with Welsh Ministerial discretion for the wind‑down period.
Regulation 3 provides that the BPS ceases to exist at the end of 31 December 2028. A Schedule lists the assimilated EU and domestic provisions to be revoked for Wales on 1 January 2029. A saving ensures those revoked provisions continue to operate insofar as necessary to finally determine outstanding rights and liabilities for claim years ending on or before 31 December 2028.
From 1 January 2026 the Welsh Ministers may annually reduce BPS payments by such amounts as they consider appropriate. This tapering power is inserted into the Direct Payments Regulation and will apply until scheme closure at the end of 2028. The instrument does not set specific rates; reductions will be determined administratively.
Ceiling‑setting is made more flexible. Article 5A of Regulation 1307/2013 (the total ceiling for Wales) is amended so that several duties become powers and the timing rule changes from ‘before the start of the relevant year’ to ‘at any time before payments are made’. Article 22 on the BPS ceiling is also amended so that the Welsh Ministers may determine the ceiling, with certain paragraphs removed to reflect the closure timetable.
Transfers of payment entitlements are tightened. Article 34 of Regulation 1307/2013 is amended so that any transfer-by any method-can only take place if, in the same transaction and from the same transferor, an eligible hectare is also transferred. Delegated Regulation (EU) No 639/2014 is aligned to require that each entitlement is transferred with an eligible hectare, using the definition in Article 32(2) of Regulation 1307/2013.
In practical terms this ends the sale or lease of ‘naked entitlements’ detached from land. Future transactions will need to bundle entitlements with sufficient eligible hectares on a one‑for‑one basis. Parties to land sales, farm business tenancies and seasonal arrangements will need to structure agreements to reflect the new statutory requirement.
Access to the Young Farmer Payment is closed to new claimants in Wales. Delegated Regulation 639/2014 now provides that, from 1 January 2026, the annual payment is available only to those young farmers already receiving it before that date. This preserves existing awards while preventing first‑time claims during the wind‑down.
The national and regional reserves are closed. Articles 30 and 31 of Regulation 1307/2013 are omitted, alongside related provisions in Delegated Regulation 639/2014 on reversion to, and establishment from, the reserves. Wales’ 2015 domestic regulations are amended to remove provisions on entitlements, their transfer, and the national reserve. The effect is that entitlements can no longer be created or replenished from reserves in Wales.
Implementing Regulation (EU) No 809/2014 is adjusted to match a no‑reserve system. Article 22 on allocation or increases in entitlement value is omitted, and Article 23 on recovery of undue entitlements is amended so that irregular holdings are adjusted accordingly, rather than reverting to a reserve that no longer exists.
Transitional arrangements ensure continuity for casework. Although revocations take effect on 1 January 2029, the saved provisions continue to apply as needed to determine appeals, reviews and recoveries relating to direct payment claims for years ending on or before 31 December 2028. This allows Rural Payments Wales to close out the scheme in a controlled manner.
The Regulations are signed by Huw Irranca‑Davies, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs. A Regulatory Impact Assessment has been prepared by the Welsh Government and is available through official channels. Annual taper and ceiling decisions will be set administratively before payments are made, so farm businesses should monitor official updates each year.