When does money arrive — the payment timeline
The cash flow profile across the scheme's first ten years: DEFRA payments, carbon credits, and market access income.
The scheme’s income case is strong over the long term. But the three streams don’t all arrive at the same time. This page maps the expected timeline honestly, including the lag periods and the cash flow profile in the early years.
1. The three streams and when they start
LRS payments
Confirmed — from Year 1- Range: £200–£900/ha/yr indicative, based on comparable LRS projects
- Lag: 3–6 months after agreement signing before first payment
- Rate is bespoke — negotiated per holding, not a flat rate
Carbon credits
Provisional — Year 3–5 earliest- PIUs (Pending Issuance Units): Year 2–3 after restoration commences, subject to validation
- PCUs (Peatland Code Units): Year 5–8+ after re-verification
- PIUs are tradeable but at a discount to PCUs
- Price: we do not quote a price. See the IUCN UK Carbon Price Index for current market reference.
Plain-English definitionsPIU — Pending Issuance Unit. A promissory credit issued once restoration works are underway and validated. Tradeable, but usually sells at a discount because the permanent carbon outcome has not yet been independently verified.
PCU — Peatland Code Unit. A verified credit confirmed after re-verification against the Peatland Code. Commands a higher price than a PIU because the carbon outcome has been independently confirmed.
Premium market access
Variable — from Year 1- Bronze trustmark: Fodder listing from Year 1
- Premium above commodity depends on buyer relationships, tier, and production
- Most variable of the three streams — hardest to project
2. Early-years cash flow profile
Illustrative proportions only. Not £ amounts and not a projection for any specific holding. The shape — not the size — is what matters here.
The transition gap.In Year 1, there is typically a 3–6 month DEFRA processing period between agreement signing and the first payment. The scheme team can advise on the specific timeline for Ure Dales once DEFRA confirms the agreement structure.
3. The 87/3/10 split — when does it apply?
The Environmental Credits Protocol applies once credits are generated and sold — Year 3 at earliest for PIUs, later for PCUs. The split is 87% to the originating landowner, 3% to the SLE, and 10% to a shared pool. It requires consortium agreement and is not unilaterally set by the SLE.
See income treatment reference and trustmark scoring for how these revenues are treated in practice.