What you need to know about the Planning and Infrastructure Act (PIA)’s ‘Nature Restoration Fund’ and ‘Environmental Delivery Plans’

In response to growing concerns and questions over the implications of this new legislation, we’ve launched our Space for Nature Substack blog to share our perspective and the latest information.

Space for Nature

FAQ 

  • What are the Planning and Infrastructure Act (PIA), Nature Restoration Fund (NRF) and Environmental Delivery Plans (EDPs)?

    What is the PIA? 
    The Planning and Infrastructure Act (PIA) is a new piece of planning law passed in 2025 meant to streamline and speed up development. Part 3 of the PIA introduces measures to help developers ‘discharge environmental obligations’ and ‘unlock’ sites for development. This is where the Nature Restoration Fund (NRF) and Environmental Delivery Plans (EDPs) come from.

    What is the NRF? 
    The Nature Restoration Fund (NRF) is the central funding pot that developers can pay into to bypass environmental regulations.In theory Natural England will administer and use this pot to fund conservation measures that relate to the development impacts,though these details are yet to be confirmed in the secondary legislation.

    What are EDPs? 
    Environmental Delivery Plans (EDPs) are the plans written by Natural England that specify the compensation measures required to address the environmental impacts of a development. They will also specify how much a developer has to pay into the NRF.

  • Why is the government introducing the NRF?

    The government gave themselves a target to build 1.5 million homes in 5 years and believe deregulation through new planning reforms is the only way to achieve that goal.

    What evidence is the NRF based on? Are great crested newts and protected species a blocker? 
    There is no evidence that nature is a ‘blocker’ of development. Parliament were misled that EDPs were needed because evidence shows that bats and great crested newts were a factor in just 3% of planning appeal decisions. Even the government’s own report showed protected species have no substantial impact on housing delivery or high house prices so the problem EDPs are ‘fixing’ doesn’t exist.

  • Is the NRF mandatory?

    This is unlikely.

    The Planning and Infrastructure Act gives Nature England the power to make the NRF mandatory, but Natural England state that EDPs, if and when they do become available, will be voluntary, and will just present another option for developers to choose from.

  • Is District Licensing here to stay?

    Yes – NatureSpace’s District Licensing Scheme will continue to operate indefinitely, providing a simple, streamlined, certain licensing route.

  • When are the first great crested newt EDPs due and what will they look like?

    This is unknown. Little is currently known about what they will entail or how they will work in practice. Further (secondary) legislation is needed before any EDPs can be made.

    The first EDPs will address nutrient neutrality. Then these first EDPs must be reviewed, and parliament presented with a report on the early implementation of the first EDPs before further roll out. EDPs for other protected species most likely won’t be available for several years if at all.

  • How is the NRF different from Biodiversity Net Gain (BNG)?

    Does the NRF use like-for-like replacement (like with BNG)? 
    This is unknown.

    EDPs for species and habitats have not been released yet but there is nothing in the PIA, supplementary legislation or ministerial statements that suggests they will require like-for-like replacements. Indeed, given the likely lack of site-based impact assessment, like-for-like replacement is highly unlikely.

    Is BNG still required with EDPs? 
    Yes.

    BNG is still required for all sites that do not meet the exemption criteria. EDPs do not release developers from the mandatory 10% uplift in biodiversity, so the NRF will be in addition to BNG and any other requirements.

    Because EDPs will only cover specific areas, specific environmental features and specific development types, other licensing/compensation routes will still need to be pursued where a development does not fit within an EDP’s boundaries or scope. This could mean an overall more expensive and lengthy application process.

  • What does the NRF mean for nature?

    How much money will go to nature?
    This is unknown. We don’t have any information yet on how much money will be used for nature restoration through the NRF but it could be as low as £1.

    Natural England may spend levy funds received for a relevant development to fund conservation measures on internal administrative expenses, anticipated future administrative expenses, and on defending appeals.

    Creating, delivering and enforcing EDPs is likely to put an extensive administrative strain on Natural England which could end up being costly and impossible to manage effectively. There is a real danger that the majority of the funds collected through the NRF will go towards admin instead of nature restoration.

    Will developers still have to do ecology surveys if they choose the NRF?  
    It’s unclear.

    The appeal of the NRF is it claims to release developers from having to do their own on-site ecology assessments, however in practice this is complicated because EDPs do not release developers from other legal environmental obligations. Unless otherwise exempt, developers will still need site-based habitat surveys and condition assessments to satisfy their mandatory BNG requirements.

    Do eNGOs endorse the NRF? 
    No.

    There was strong pushback on part 3 of the PIA from the environment sector and opposition parties including several proposed amendments to prevent EDPs for protected species. The Office of Environmental Protection called the reforms ‘regressive’ saying the proposals ‘lower environmental protection on the face of the law’ and the environmental NGOs say it’s a ‘licence to destroy.’ It remains a controversial and unpopular option among eNGOs.

    What is the mitigation hierarchy and is it honoured in EDPs? 
    The mitigation hierarchy is the conservation framework currently used which requires development to first avoid environmental harm, then mitigate harm, and if mitigation is not possible the harm must be offset as a last resort. Natural England can now bypass avoidance and mitigation in the mitigation hierarchy and go straight to cheaper offsetting options if they consider it ‘appropriate’ and considering ‘value for money’.

    The new regulations turn the mitigation hierarchy into a discretionary choice by Natural England rather than a legally binding obligation which effectively defeats its purpose. There is currently no guidance on how Natural England will apply this discretion or criteria they will use to determine what ‘value for money’ is.

    This is different to District Licensing, where the mitigation hierarchy is built into the scheme.

  • What does the NRF mean for developers?

    How much will the NRF cost developers? 
    This is unknown.

    Natural England will decide how much each individual EDP will cost. Each EDP will set out costs to developers, but it is likely that developers will not know the total cost of their levy payment until after they have legally committed to use it.

    Can developers back out of the NRF?  
    No.

    Developers are forced to commit to levies before they know how much they will cost. Developers won’t know the final cost amount of the NRF that they are liable for until later in the process, at which point they will be locked in and unable to back out unless planning permission is refused. This is different to existing mitigation schemes which remain optional throughout and beyond the planning process.

    Is it certain that EDPs will be a viable option for developers? 
    No.

    It remains unclear when or if EDPs will be a viable option for developers. The National Audit Office has reported that Natural England “recognises that implementing these reforms will be challenging” and has said it “has a ‘low’ confidence that it will be able to deliver forthcoming milestones for three of the four critical reforms”, including the Nature Restoration Fund (NRF).

    Is NRF money required up front?
    No.

    Developers are allowed to pay the NRF levy in instalments and Natural England may set a reduced rate in a charging schedule to account for actual or expected sources of funding. By not requiring the full NRF costs to be paid before construction begins, Natural England risks the formation of a funding backlog. Chasing late and unpaid fees will inevitably add extra time and costs as well.

    Are developers liable for nature recovery with the NRF?
    No.

    Once the developer pays the levy fee their liability for nature recovery is dismissed.

    What happens if developers don’t pay their levy fees? Does the NRF affect homeowners?
    Natural England must impose levy liability on the landowner when the developer fails to pay. The only exemption is if doing so would result in ‘substantial injustice’. This means innocent homebuyers may purchase new homes without any warning that enforceable levy fees have been attached to their new home. The addition of ‘substantial injustice’ attempts to combat this, but the burden is on the landowner to pursue this exemption which could be a costly and time-consuming legal process.

     

  • What does the NRF mean for local authorities?

    Can local authorities still make decisions on EDPs and where NRF money is spent?
    No.

    All EDPs decisions are made by Natural England including where NRF money is spent. Money that developers would otherwise have spent locally is instead taken centrally. Monies can be spent by Natural England anywhere within the area of an EDP – and EDPs could cover the whole of England.

    Is NRF money spent locally? Is NRF nature recovery delivered locally? 
    There is no requirement for NRF money to be spent locally or nature recovery through the NRF to be delivered locally.
    Developer payments into the national ‘Nature Restoration Fund (NRF)’ will operate on an EDP-wide scale – unlike District Licensing schemes which are delivered locally. This means local wildlife populations and natural habitats will be lost, resulting in less nature and green spaces for communities to benefit from. The EDP system will mean less funding for Local Nature Recovery Strategies.

    Even if restoration is in their local area, local authorities won’t know for many years whether any nature spending is having any positive outcomes because of the very low monitoring requirements set out in the PIA.

  • How are EDPs different from District Licensing?

    Will EDPs have the same environmental standards as DL? 
    This is unknown.

    Unlike District Licensing, EDPs bypass the requirements of the Habitat Regulations. Key environmental principles like local increases in conservation status, precautionary principle, polluter pays and the mitigation hierarchy are either absent or optional with EDPs.

    How does District Licensing perform compared to EDPs? 
    The 2025 monitoring report from the Newt Conservation Partnership shows district licensing habitats are being created and restored to an exceptional standard, and our compensation sites are already being widely used by great crested newts, with many also supporting other regionally and nationally rare wetland plants and animals.
    Here are some key performance figures:

    90% of mature compensation sites occupied by great crested newts
    96% of ponds have a Habitat Suitability Index score of Excellent or Good
    91% of ponds meet confirmed or provisional ‘Priority Pond’ status and
    95% have clean water status

    EDPs do not have any data or evidence as they have not been created or implemented yet.

  • Does the NRF override Habitats Regulations?

    Currently the NRF does not legally override the entire Habitats Regulations all at once, but it does allow developers to scrap some specific obligations required which are set out within the EDP for those environmental features mentioned, for example site specific impact assessments or species licences. However this is still mostly unclear and subject to further legislation making it another grey area where problems could occur with implementation.

  • Do EDPs have unlimited capacity?

    No.

    EDPs will have a limited capacity and may only be applicable up to a stated ‘maximum’ amount of development within that area – this could ‘fill up’ rapidly, so there may not be capacity within the EDP by the time it comes to submitting for planning or discharging conditions, leading to greater uncertainty for planners and developers.

  • Can the Secretary of State approve and refuse EDPs?

    Yes.

    The Secretary of State has final say over the acceptance of EDPs.
    If it’s determined that the effect of conservation measures does not ‘materially outweigh’ the negative effect of the development on the conservation status of each identified environmental feature, the EDP could be invalidated. It’s worth noting that closure, revocation or delay of EDPs could affect planning consent prospects and cause problems for developers later down the line.

  • Who enforces EDPs?

    Natural England enforces EDPs. Natural England also design the EDPs, and decide how much EDPs cost.

  • Can this be changed? What can I do to take action?

    The Planning and Infrastructure Act and ministerial statements state that EDPs, if and when they do become available, will be voluntary, and will just present another option for developers to choose from. Local authorities and developers can still choose evidence-based, high-integrity, local delivery schemes that are proven to deliver positive outcomes for our protected species and habitats.

    If you are not a local authority or developer you can still help by emailing your MP with your concerns. This can be done quickly and easily with this template.