Woodlands support subsidy scheme

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales.

Wales

Woodlands Support Subsidy Scheme

Woodland creation grants in Wales are legally justified through a combination of devolved competence, forestry‑specific statutory duties, and environmental and climate legislation that together empower and require Welsh Ministers to support afforestation through financial assistance.

The Government of Wales Act 2006 provides the constitutional basis. It establishes Welsh Ministers as the devolved executive with authority to exercise functions and incur expenditure in devolved policy areas. Forestry, environmental protection and land management are not reserved matters, meaning Welsh Ministers may lawfully design and fund woodland creation schemes as part of their devolved responsibilities.

The Forestry Act 1967, as it applies in Wales, provides the core forestry powers. It places a general duty on the appropriate forestry authority to promote forestry and afforestation and to encourage the establishment and maintenance of growing trees, while balancing timber production with conservation of natural beauty, flora and fauna. Grant funding is a long‑established and proportionate mechanism for discharging this statutory duty.

The Environment (Wales) Act 2016 significantly strengthens the legal basis for woodland creation grants. Part 1 establishes the statutory framework for the sustainable management of natural resources, including principles of long‑term thinking, prevention and integration. Section 6 places a legal duty on Welsh Ministers to seek to maintain and enhance biodiversity and promote ecosystem resilience. The Act also provides powers to enter into land management agreements. Part 2 places binding duties on Welsh Ministers to set and meet greenhouse gas emissions targets and carbon budgets, requiring implementation of policies—such as woodland creation—that contribute to climate mitigation.

Finally, the Well‑being of Future Generations (Wales) Act 2015 imposes a legal duty on Welsh Ministers to carry out sustainable development in pursuit of the statutory well‑being goals, including a Resilient Wales and a Globally Responsible Wales. While not a spending power itself, the Act requires Ministers to use available powers—such as grant funding—in ways that deliver long‑term environmental and societal benefits.

• Increase woodland creation in Wales to address long‑term under‑provision and contribute to Wales’ statutory Net Zero 2050 commitment through increased carbon sequestration.
• Restore damaged or diseased woodland, ensuring recovery of habitats and carbon stocks following tree health and disease events.
• Improve the long‑term resilience and condition of Welsh woodlands, including resilience to pests, diseases and climate change, through active and sustainable management.
• Support nature recovery and biodiversity enhancement by creating, restoring and managing woodland habitats that deliver public environmental goods.
• Strengthen the domestic timber supply in line with Making Wood Work for Wales, reducing reliance on imports, supporting decarbonisation of construction, and improving supply‑chain resilience.
• Support rural economic development, including skilled employment, up‑skilling and productivity across the forestry and timber supply chain.
• Promote fair access to environmental opportunities, enabling smaller farms, tenant farmers and community groups to participate in woodland creation and management where financial barriers would otherwise exclude them.

The woodland subsidy schemes pursue a clear public policy objective by addressing well‑evidenced market failures that result in the under‑provision of woodland creation, restoration and long‑term management in Wales. High upfront capital costs, long and uncertain payback periods, exposure to pests, disease and climate risk, and limited private returns mean that these activities would not be delivered at the required scale without public intervention. The schemes support farmers, land managers, community groups and woodland owners to deliver outcomes that generate significant public benefits, including increased carbon sequestration, biodiversity recovery, improved ecosystem resilience, and a stronger domestic timber supply. These outcomes directly support Wales’ statutory Net Zero 2050 commitment, nature recovery objectives and the Timber Industrial Strategy, and deliver benefits that extend beyond individual beneficiaries to the wider economy, environment and society.

Welsh Government

Farmers, landowners, land managers, community groups and woodland owners are eligible to receive subsidies under the scheme.

Landowners or managers with permission can access the woodland creation grants for planting new trees. existing woodland owners will be able to access management grants.

Agriculture, forestry and fishing

From 20 March 2026 to 21 March 2031

£50,000,000

All subsidy awarded under the scheme will be awarded by way of direct grants.

• Land must be in Wales.
• Applicants must have management control for the full commitment period.(schemes are not available if you are a government department or their agents)
• Land must be registered in Welsh Government's Land Parcel Identification System
• For woodland creation minimum block size must be 0.1Ha

Subsidies for the scheme are based on capital costs for tree planting including ancillary activities (eg. ground preparation and fencing) and management actions as well as revenue payments for maintenance and income foregone (premium payments). Subsidies are paid up to a cost ratio of up to 100%.

£1,500,000

For more information about applying for support under this scheme, please contact PolisiCoedwigaeth.ForestryPolicy@gov.wales

For more information about this scheme’s compliance with the Subsidy Control Act 2022, please contact: