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Statutory Biodiversity Credits

Overview​

Statutory biodiversity credits are units sold by the government that a developer can buy to meet BNG only as a last resort — when on-site and off-site options have genuinely been exhausted. They are the backstop at the bottom of the biodiversity gain hierarchy, deliberately designed to be the least attractive option.

Why it matters for BNG​

Credits exist to guarantee BNG can always be met, so the requirement can't stall development — but they are engineered to be unappealing so the market (real habitat) does the work instead:

  • They are priced high and carry a penalty structure — broadly, you need to buy two statutory credits for every one biodiversity unit you're short, on top of per-credit prices tiered by habitat distinctiveness band. The maths is meant to hurt.
  • Using them requires evidence that the earlier hierarchy steps were maximised — you can't jump to credits for convenience.
  • The money funds national habitat creation, so the gain is real but displaced from the development's locality.

How it works — England​

  1. Exhaust on-site enhancement/creation, then off-site units — and be able to show it.
  2. For any residual shortfall, buy statutory credits from the government at the published, band-tiered prices, applying the multiplier that makes credits cost more than equivalent market units.
  3. The purchase discharges the residual BNG requirement; the funds are directed to national habitat delivery.

The pricing is periodically reviewed, and the whole design intent is that credits should rarely be used — their existence is mostly to make the market work by being the expensive alternative everyone wants to avoid.

Nation differences​

A government-credit backstop of this kind is part of the England statutory BNG regime; see What is BNG?.

None directly — credits are a financial/administrative mechanism, not a spatial dataset.

WildStack's take​

WildStack's take

Statutory credits are best understood as a deliberately bad deal that makes the system work. Their real job isn't to be used — it's to set a high, certain ceiling price so the off-site market has something to undercut and developers have a reason to design gain in properly. If a scheme's plan is to lean on credits, that's usually a signal the earlier steps weren't taken seriously, not a clever shortcut. Treat a credits line in a BNG strategy as a red flag to revisit on-site and off-site options, not as a solved problem — the price is high on purpose, and it will stay that way.

Official sources​

Last reviewed​

5 July 2026. Revisit whenever credit prices or the multiplier are updated, or if the eligibility rules for reaching credits change. Confirm current prices on GOV.UK before quoting figures.

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