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Tees catchment: how to apply for nutrient mitigation credits from Natural England

Updated 9 December 2024

Applies to England

If you want to build new housing units within the Tees catchment area (also known as the Teesmouth or Teesmouth and Cleveland Coast Special Protection Area and Ramsar catchment area), you may need to mitigate any nutrient pollution your development creates. Mitigating nutrient pollution is part of the process to get planning permission with your local planning authority (LPA). 

To do this, you can apply to buy credits that fund mitigation activities, such as creating a new woodland or wetland. This will balance out nutrient pollution produced by your housing development. 

This guidance explains how to buy credits from Natural England’s nutrient mitigation scheme.

Who can apply 

You can apply to buy nutrient credits from Natural England if you want to build any number of housing units, including just one house. You can be:  

• an individual  
• a housing developer of any size  
• a consultant working on behalf of an individual or a developer  

Your development must be classed as a permanent residential development and be within the Tees catchment area.

When to apply 

The next application round for the Tees catchment (round 8) opens on 5 February 2025 and closes on 4 March 2025.

Any applications received outside of an application round will be rejected. 

You need to submit a planning application and have the planning application reference before you apply for credits, but you do not need to have received the permission.  

Choose the round that best fits your planning application timings. For example, if you plan to build housing in 12 months’ time, consider applying for credits in future application rounds.

Step 1: Calculate how many nutrient mitigation credits you need 

Calculate how many credits you need to buy, based on how many nutrients your development needs to mitigate. 

To do this: 

1. Read the guidance on using the calculators 
2. Use the Teesmouth SPA, Ramsar: nutrient neutrality calculator  

The calculator will tell you the total amount of nitrogen you need to mitigate and how many credits you need. To mitigate one kilogram (kg) of nitrogen, you need to buy one credit. To mitigate 2.75kg you’ll need to apply to buy 2.75 credits. 

The calculator will also tell you if your required credit amount changes after 2030. If it does, the calculator will provide a pre and post-2030 nutrient loading figure in kg per year and you need to provide both on your application form.   

Natural England currently offers long term credits only. However, these can meet both the short term (pre-2030) and long term (post-2030) requirements.  

Submit your calculations to your LPA as part of your planning application. Your LPA will confirm if the calculations are correct. 

You can apply for credits before your calculations are confirmed. 

If your LPA tells you that the number of credits you have applied for is incorrect, email Natural England at [email protected] for advice on what to do next.

How much credits cost 

The cost of a credit in the Tees catchment area for round 7 is £2,700. 

This includes a standard admin fee of £182.50 plus VAT per application. The fee covers the cost of processing the application and is non-refundable.  

The cost of credits can vary between catchment areas and in different rounds, depending on how much mitigation projects cost.

Step 2: Apply for credits 

Complete the application form with the following information:  

• the developer’s contact details  
• the consultant’s contact details (if applicable)  
• agent authorisation (if applicable) 
• site location as an Ordnance Survey (OS) grid reference 
• the development site address  
• a map showing the boundary of the development site as a Geographic Information System (GIS) polygon shapefile or Google Earth KML file  
• the planning use class of the development  
• the number of housing units you are building  
• the number of units classed as affordable housing  
• your planning application reference   
• the date you expect the first unit to be occupied  
• the number of credits you need to buy 

To submit your application, attach a copy of the completed application form and completed nutrient budget calculation to an email and send them to [email protected]. If you do not, your application may be rejected.

You’ll get a confirmation email from Natural England.  Your information will be checked by a company called Accenture on behalf of Natural England. 

How credits will be allocated 

Credits are allocated depending on the number of housing units you plan to build. In any one round, 60% of the credits will be made available to smaller developments (those of 50 units or fewer) and 40% to larger developments (those of 51 units or more). 

Following prioritisation, any unallocated credits within the smaller developments pot will be transferred to the larger developments pot, or the other way around. 

Within these pots, credits will be allocated to support the greatest number of homes. This means an application where 10 houses can be built for every credit will be prioritised over one where 5 houses can be built. Older planning applications that have already been granted full planning permission, subject to mitigating nutrient mitigation pollution, can form part of this application process. 

If multiple applications are prioritised equally, we will consider the order in which the applications were received.

Step 3: Sign and return your nutrient credit certificate 

If your application is successful, Natural England will email you with the following:  

• an unsigned nutrient credit certificate  
• your unique reference number (quote this in all correspondence)  

Check the following information on your nutrient credit certificate: 

• how many credits you’ve been allocated  
• the details of the development  
• the total cost of credits for mitigation  
• the scheme’s terms and conditions  

If the information is correct, sign and return the certificate to [email protected].   

Pay the deposit  

Natural England will send you an invoice for one of the following, whichever is highest:  

• £182.50 plus VAT (standard minimum fee)   
• 10% of the total cost of credits  

You need to pay this within 28 days or risk losing your credit allocation.   

When you’ve paid, you’ll receive your signed provisional nutrient credit certificate.

Step 4: Continue your application for planning permission with your LPA 

Send a copy of your provisional nutrient credit certificate to your LPA as proof that you have been allocated nutrient mitigation credits. Your LPA will confirm whether you can continue your planning application.  

Your provisional nutrient credit certificate expires 36 weeks after the issue date. The start date is on the front page alongside the nutrient credit certificate expiry date.  

If you cannot get planning permission within 36 weeks, contact [email protected] to request an extension, giving the reason for any delays.  

If you do not do this, your nutrient credit certificate will expire and your credits may be reallocated. 

If you do not continue with your planning application 

You may be able to get a refund if you contact Natural England within 28 days of one of the following happening: 

• you withdraw your planning application 
• your development is refused planning permission 
• you are given planning permission, but you do not agree to its terms and decide to withdraw from the development 

To request your refund, email [email protected] with: 

• the reason for your refund 
• your unique reference number 

If your deposit is higher than the administration fee, Natural England may refund your 10% deposit, minus an admin fee of £182.50 plus VAT. If your deposit was the same amount as the administration fee it is non-refundable.

Step 5: Tell Natural England as soon as you get a planning decision 

You must tell Natural England within 8 weeks of receiving planning permission. Email a link to the decision notice on your LPA website to [email protected].  

Natural England will invoice you for the remaining value of your credits. You must pay this within 28 days.    

If you do not contact Natural England within 8 weeks or pay your final invoice in 28 days, your nutrient credit certificate will expire, and your credits will be reallocated.  

When you’ve paid in full, you’ll be sent your final nutrient credit certificate.

Step 6: Send your nutrient credit certificate to your LPA 

When you have received your final nutrient credit certificate, send a copy to your LPA. Your LPA will confirm if you have met the nutrient mitigation conditions of your planning application. 

When this has been confirmed, the housing on your development can be occupied.

If the size of your development changes 

If the size of your development changes you must let your LPA and Natural England know. 

It’s your responsibility to calculate and confirm how many credits you now need. 

When you contact Natural England, provide your unique reference number and details of what has changed, including: 

• how much the development has changed in size 
• a map showing the new boundary of the development site as a GIS polygon shapefile or Google Earth KML file 
• how many credits you now need 

Natural England will tell you if you need to submit a new application. 

If the number of credits you need has increased, Natural England cannot guarantee they will be able to allocate you the additional credits. This may lead to a delay in your planning decision. You can apply for the additional credits in the next round of applications. 

If the number of credits you need has decreased, you may be entitled to a partial refund. Natural England will tell you if this is possible. 

If the name on the certificate needs amending  

If the name on the certificate needs to change you must inform Natural England as soon as possible.    

Contact [email protected].    

A change to the name of the certificate may require new checks and invoicing details. There may be an additional administration fee to pay.    

If a name change is not possible, any payment and VAT will be refunded without interest, after the admin fee has been deducted. 

Get help 

If you need more information on Natural England’s nutrient mitigation scheme and how to apply, email [email protected].