---
title: "Biodiversity Net Gain (BNG): What It Is and How It Works (2026)"
description: Most new development in England must leave habitats 10% better. How biodiversity net gain works, who it applies to, the 2026 changes and whether it works.
image: https://www.pixcellence.co.uk/hubfs/blog/images/bng-guide-hero-20261029-20261029-112343.webp
---

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 By [Clwyd Probert](https://www.pixcellence.co.uk/blog/author/clwyd-probert) on October 29, 2026

[biodiversity](https://www.pixcellence.co.uk/blog/tag/biodiversity)

# Biodiversity Net Gain (BNG) Explained: The 2026 Guide for England

**Biodiversity net gain (BNG) is a legal requirement in England that most new development must leave wildlife habitat at least 10% better than it was before, measured in "biodiversity units" and secured for at least 30 years.** It has applied to major development since 12 February 2024 and to small sites since 2 April 2024, under Schedule 7A of the Town and Country Planning Act 1990, inserted by the [Environment Act 2021](https://www.legislation.gov.uk/ukpga/2021/30/schedule/14/enacted) ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)).

This guide explains what BNG is, why it was introduced, who it applies to, how the 10% is delivered and paid for, what changed in 2026 and what the evidence says so far. It links to our deeper guides on [the law and exemptions](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-regulations), [how the metric calculates units](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric) and [the strengths and criticisms of the metric](https://www.pixcellence.co.uk/blog/statutory-biodiversity-metric-explained-guide).

10%

Minimum net gain

Environment Act 2021

30 years

Minimum habitat commitment

Off-site and significant on-site gains

12 Feb 2024

Mandatory for major development

Small sites from 2 April 2024

2 Nov 2026

Mandatory for NSIPs

New DCO applications

Sources: [Environment Act 2021, Schedule 14](https://www.legislation.gov.uk/ukpga/2021/30/schedule/14/enacted); [GOV.UK, Understanding BNG](https://www.gov.uk/guidance/understanding-biodiversity-net-gain); [GOV.UK, BNG for NSIPs](https://www.gov.uk/guidance/biodiversity-net-gain-nationally-significant-infrastructure-projects).

Key Takeaway

BNG turns "no net loss" into a measurable gain. A developer surveys the site, scores its habitats with the **statutory biodiversity metric**, and must show the finished scheme delivers **at least 10% more biodiversity units**, through on-site habitat first, then registered off-site land, and statutory credits only as a last resort. In 2026 the rules changed: sites of **0.2 hectares or less** are exempt for new applications from 6 August 2026, and BNG reaches **nationally significant infrastructure projects** from 2 November 2026.

In this guide

- [What is biodiversity net gain?](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#what)
- [Why BNG was introduced](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#why)
- [Who BNG applies to](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#who)
- [How BNG works, step by step](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#how)
- [On-site, off-site and credits](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#hierarchy)
- [The off-site market and the register](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#market)
- [Statutory biodiversity credits](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#credits)
- [What changed in 2026](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#2026)
- [Is BNG working?](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#working)
- [BNG and wider nature policy](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#policy)
- [FAQs](https://www.pixcellence.co.uk/blog/biodiversity-net-gain#faq)

## What is biodiversity net gain?

BNG is an approach to development that makes sure habitats for wildlife are left in a measurably better state than before. In England it is a statutory condition: every planning permission is deemed to be granted subject to a **biodiversity gain condition**, unless it is exempt or falls outside the transitional dates ([Planning Practice Guidance](https://www.gov.uk/guidance/biodiversity-net-gain)).

Three features make BNG different from earlier "net gain" planning policy:

- **It is quantified.** Biodiversity is measured in standard biodiversity units with Defra's [statutory biodiversity metric](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric), so a 10% gain means 10% more units, not a general improvement.
- **It covers the whole site.** The 10% applies to all habitats inside the red line boundary, whether or not they are directly affected by the building work ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)).
- **It is long-term.** Off-site gains and significant on-site gains must be created or enhanced and then maintained for at least 30 years, under a legal agreement.

BNG applies in **England only**. Scotland, Wales and Northern Ireland have their own planning approaches to biodiversity. It uses habitats as a stand-in for biodiversity; it does not count species, and it sits alongside, not in place of, [protected species law](https://www.pixcellence.co.uk/blog/protected-species-uk-guide).

## Why was BNG introduced?

BNG was introduced because development has long been one of the pressures on England's wildlife, and the old planning approach of avoiding, mitigating and compensating for harm did not reliably stop habitat loss. UK species studied have declined by an average of 19% since 1970, and nearly 1 in 6 species are threatened with extinction from Great Britain ([State of Nature 2023](https://stateofnature.org.uk/)).

Before 2024, national planning policy already asked for "measurable net gains for biodiversity", but there was no standard measure and no legal minimum. The Environment Act 2021 made the gain mandatory, set the floor at 10% and tied it to a single metric. It also sits alongside a legally binding target to halt the decline in species abundance in England by 2030 ([Environmental Targets (Biodiversity) (England) Regulations 2023](https://www.legislation.gov.uk/uksi/2023/91/contents/made)). For the wider picture, see [the causes of biodiversity loss](https://www.pixcellence.co.uk/blog/loss-of-biodiversity-causes).

## Who does BNG apply to?

BNG applies to developers who need planning permission in England, to land managers who want to sell biodiversity units, and to local planning authorities (LPAs), who check and enforce it. From 2 November 2026 it also applies, with different rules, to nationally significant infrastructure projects (NSIPs) such as major energy and transport schemes ([GOV.UK](https://www.gov.uk/guidance/biodiversity-net-gain-nationally-significant-infrastructure-projects)).

It does **not** apply to:

- planning applications made before 12 February 2024 (or before 2 April 2024 for small sites), or reserved matters approvals under those older outline permissions;
- householder applications, such as extensions and loft conversions;
- development granted by a development order, including permitted development rights;
- de minimis development affecting less than 25 m² of habitat and 5 m of hedgerow, with no priority habitat affected;
- from 6 August 2026, new applications on sites of **0.2 hectares or less** and temporary development permitted for 5 years or less, unless onsite priority habitat is affected;
- sites created to supply off-site BNG, urgent Crown development and the high-speed rail network.

The self-build and custom-build exemption was **removed** for applications made on or after 6 August 2026 ([GOV.UK, exempt developments](https://www.gov.uk/guidance/biodiversity-net-gain-exempt-developments)). The full list, with the transitional rules, is in our [guide to BNG regulations and exemptions](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-regulations).

## How does BNG work, step by step?

![Watercolour of an ecologist making notes beside an old hawthorn and field maple hedgerow at the edge of an English field, with a yellowhammer on the hedge top.](https://www.pixcellence.co.uk/hubfs/blog/images/bng-rules-hedgerow-survey-20261029-20261029-112404.webp)

1. **Baseline survey.** An ecologist maps and condition-assesses the habitats on site. For small sites, the simpler Small Sites Metric can be completed by a competent person such as a landscape architect ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)).
2. **Metric calculation.** The habitats are entered into the [statutory biodiversity metric tool](https://www.gov.uk/government/publications/statutory-biodiversity-metric-tools-and-guides), which gives a baseline in biodiversity units and tests design options.
3. **Planning application.** The applicant confirms whether BNG applies and submits the minimum BNG information, including the pre-development biodiversity value and a habitat plan.
4. **Biodiversity gain plan.** After permission is granted, and before work starts, the developer submits a biodiversity gain plan. The LPA must approve or refuse it within 8 weeks ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)).
5. **Delivery and 30-year management.** Habitats are created or enhanced, secured by planning condition, section 106 obligation or conservation covenant, and managed and monitored for at least 30 years.

Want the arithmetic? Our metric guide sets out the formula, the distinctiveness and condition scores and a worked example.

[How the BNG metric calculates units →](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric)

## On-site, off-site and credits: the biodiversity gain hierarchy

Developers should first avoid and reduce harm through site choice and layout. They then have three ways to reach 10%, which must be used in this order ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)):

| Option | What it means | Legal security |
| --- | --- | --- |
| 1. On-site | Creating or enhancing habitat within the red line boundary, such as meadows, ponds, hedgerows or street trees | Planning condition or section 106 for significant gains; 30 years |
| 2. Off-site | Habitat on other land: the developer's own, or units bought from a land manager or habitat bank | Section 106 or conservation covenant; registered; 30 years |
| 3. Statutory credits | A payment to government, which invests it in habitat creation elsewhere in England | Last resort only; proof that options 1 and 2 are not possible |

Since 6 August 2026, small (minor) developments that are not exempt can weigh options 1 and 2 together and go straight to off-site delivery ([SI 2026/790](https://www.legislation.gov.uk/uksi/2026/790/contents/made)). Irreplaceable habitats, such as ancient woodland, sit outside the hierarchy: losses need bespoke compensation agreed with the LPA, and cannot be bought off with credits ([PPG](https://www.gov.uk/guidance/biodiversity-net-gain)).

![Watercolour study of a great crested newt at the edge of a newly dug wildlife pond with marsh marigold, water mint and pondweed, and a common darter dragonfly on a reed.](https://www.pixcellence.co.uk/hubfs/blog/images/bng-guide-newt-pond-20261029-20261029-112354.webp)

## The off-site market and the biodiversity gain sites register

BNG has created a market in biodiversity units. Farmers, estates, conservation charities and habitat bank operators can create or enhance habitat on their land, sign a legal agreement of at least 30 years, register the site, and sell the resulting units to developers ([GOV.UK](https://www.gov.uk/guidance/understanding-biodiversity-net-gain)).

- **The register.** Off-site gains must be recorded on the national [biodiversity gain sites register](https://www.gov.uk/guidance/search-the-biodiversity-gain-sites-register), run by Natural England under section 100 of the Environment Act 2021, and allocated to the development they serve.
- **Legal agreements.** Either a section 106 planning obligation with the LPA, or a conservation covenant with a "responsible body" designated by the government ([GOV.UK](https://www.gov.uk/guidance/enter-a-legal-agreement-for-biodiversity-net-gain)).
- **Location matters.** Units from further away count for less: under the metric's spatial risk multiplier, off-site habitat in a neighbouring local planning authority or national character area is worth less than habitat close to the development, and habitat further away less again ([metric user guide](https://assets.publishing.service.gov.uk/media/6a1d98e9c7335e2ca6daadd5/The_Statutory_Biodiversity_Metric_-_User_Guide_-_June_2026.pdf)).

![Watercolour of a former arable field restored as a wet floodplain meadow with shallow scrapes, ragged robin and young trees, and two lapwings, one in display flight.](https://www.pixcellence.co.uk/hubfs/blog/images/bng-guide-habitat-bank-20261029-20261029-112350.webp)

For land managers this is a new income stream that can sit alongside farm schemes. Our guide to [agricultural biodiversity](https://www.pixcellence.co.uk/blog/agricultural-biodiversity) covers what restored farmland can support.

## Statutory biodiversity credits

Statutory credits are the backstop. They are sold by Natural England on behalf of Defra, and the money is invested in habitat creation or enhancement ([GOV.UK](https://www.gov.uk/guidance/statutory-biodiversity-credits)). Prices are deliberately set high so they do not undercut the private market ([GOV.UK price list](https://www.gov.uk/guidance/statutory-biodiversity-credit-prices)):

| Tier | Example habitats | Price per credit |
| --- | --- | --- |
| A1 | All low-distinctiveness habitat; medium grassland, heathland, urban; reedbeds; traditional orchards | £42,000 |
| A2 | Medium woodland; lowland calcareous grassland; lowland heathland; open mosaic habitat | £48,000 |
| A3 | Wet woodland; upland birchwoods; littoral mud | £66,000 |
| A4 | Ponds; saltmarsh; lowland mixed deciduous woodland; upland oakwood | £125,000 |
| A5 | Lakes (high, moderate and low alkalinity; marl; peat) | £650,000 |
| H / W | Hedgerows / all watercourses | £44,000 / £230,000 |

A "spatial risk multiplier" means developers must buy **two credits for every biodiversity unit** they are short ([GOV.UK](https://www.gov.uk/guidance/statutory-biodiversity-credit-prices)). Sales have been small: £206,180 in the first year of mandatory BNG ([Defra annual report](https://www.gov.uk/government/publications/biodiversity-net-gain-statutory-credits-annual-report-2024-to-2025/biodiversity-net-gain-statutory-credits-annual-report-2024-to-2025)) and £426,100 in 2025 to 2026 ([Defra report](https://www.gov.uk/government/publications/biodiversity-net-gain-bng-statutory-credit-reports-2025-to-2026/biodiversity-net-gain-bng-statutory-credits-report-1-april-2025-to-31-march-2026)), consistent with credits being a last resort. We look at what that does and does not tell us in [the statutory biodiversity metric: strengths and criticisms](https://www.pixcellence.co.uk/blog/statutory-biodiversity-metric-explained-guide).

## What changed in 2026?

| Change | Status | Applies to |
| --- | --- | --- |
| Exemption for sites of 0.2 ha or less (red line boundary), unless onsite priority habitat is affected | In force 6 August 2026 | New applications |
| Exemption for temporary development of 5 years or less, unless onsite priority habitat is affected | In force 6 August 2026 | New applications |
| Self-build and custom-build exemption removed | In force 6 August 2026 | New applications |
| Minor development may go straight to off-site gains | In force 6 August 2026 | New applications |
| BNG for nationally significant infrastructure projects | Mandatory from 2 November 2026 | New DCO applications |
| Local Nature Recovery Strategies | Being published across England's 48 areas | Strategic significance scoring |
| Further exemptions and metric changes, and a possible brownfield residential exemption | Proposed; timing not confirmed | To be confirmed |

Sources: [SI 2026/790](https://www.legislation.gov.uk/uksi/2026/790/contents/made); [Defra, July 2026](https://defraenvironment.blog.gov.uk/2026/07/14/biodiversity-net-gain-amendments-and-transitional-arrangements-published/); [Defra, August 2026](https://defraenvironment.blog.gov.uk/2026/08/27/biodiversity-net-gain-for-major-infrastructure-projects-new-guidance/); [GOV.UK, LNRS areas](https://www.gov.uk/government/publications/local-nature-recovery-strategies-areas-and-responsible-authorities); [Government response, April 2026](https://www.gov.uk/government/consultations/improving-the-implementation-of-biodiversity-net-gain-for-minor-medium-and-brownfield-development/outcome/government-response-and-summary-of-responses).

The changes apply to applications made on or after 6 August 2026. Earlier applications, and permissions already granted, keep the previous rules. For NSIPs, BNG applies to the habitats a project affects rather than the whole site, gains can be on- or off-site from the outset, and an outline biodiversity gain plan is needed with the application ([Defra](https://defraenvironment.blog.gov.uk/2026/08/27/biodiversity-net-gain-for-major-infrastructure-projects-new-guidance/)).

## Is biodiversity net gain working?

The honest answer is that it is too early to know. BNG habitats take years to reach their target condition, and there is no national dataset yet on how much has been delivered on the ground. The research so far points to where the risks are:

- A study of BNG plans from six early-adopter councils found the developments were associated with a **34% loss of non-urban habitat area**, offset on paper by promised improvements in habitat condition, and that **95% of the units** were planned on or next to development sites ([zu Ermgassen et al., 2021](https://doi.org/10.1111/conl.12820)).
- A later study found **27% of units** came from on-site improvements unlikely to be monitored or enforced, and that **21% of development applications** contained a simple recurring error in the metric calculation, half of which councils had approved ([Rampling et al., 2024](https://doi.org/10.1111/cobi.14198)).

Both studies looked at plans, not outcomes, and some predate mandatory BNG. But they show why the 30-year legal agreements, LPA monitoring and the register matter. The test of BNG is whether the habitat promised in 2024 is still there, and in good condition, in the 2050s.

## BNG and wider nature policy

BNG is one tool among several for nature recovery in England:

- **Local Nature Recovery Strategies.** England is divided into 48 LNRS areas, and the strategies have been published area by area through 2025 and 2026 ([GOV.UK](https://www.gov.uk/government/publications/local-nature-recovery-strategies-areas-and-responsible-authorities)). Habitat created where an LNRS maps it scores a higher strategic significance in the metric, steering BNG towards places that matter most.
- **Farm schemes.** Environmental land management payments fund nature on farmland; BNG adds private money from development.
- **Protected sites and species.** Sites of Special Scientific Interest, European sites and protected species licensing still apply in full.
- **30by30.** Around 7% of England's land currently meets the government's 30by30 criteria (Defra, July 2026). BNG sites can contribute to nature recovery networks but are not protected areas in themselves. See [conservation and protection in the UK](https://www.pixcellence.co.uk/blog/conservation-and-protection-uk-guide).

## Frequently asked questions about biodiversity net gain

### What is biodiversity net gain in simple terms?

Biodiversity net gain (BNG) is a planning rule in England that requires most new development to leave wildlife habitat in a measurably better state than before. The gain must be at least 10%, measured in biodiversity units with the statutory biodiversity metric, and the new or improved habitat must be maintained for at least 30 years.

### When did BNG become mandatory?

BNG became mandatory for major development on 12 February 2024 and for small (minor) development on 2 April 2024. It applies to planning applications made on or after those dates. For nationally significant infrastructure projects it applies to development consent order applications made on or after 2 November 2026.

### Does BNG apply to my extension or small site?

Householder applications such as extensions are exempt. Since 6 August 2026, new planning applications on sites of 0.2 hectares or less are also exempt, unless the development affects onsite priority habitat. Development affecting less than 25 square metres of habitat and 5 metres of hedgerow is exempt under the de minimis rule.

### How is the 10% gain measured?

With Defra's statutory biodiversity metric. An ecologist (or, for small sites, a competent person using the Small Sites Metric) records each habitat's area, distinctiveness, condition and strategic significance. The metric converts these into biodiversity units before and after development, and the post-development total must be at least 10% higher.

### What are the three ways to deliver BNG?

On-site habitat creation or enhancement; off-site gains on registered land, either the developer's own or bought as units from a land manager; and, as a last resort, statutory biodiversity credits bought from the government. Developers must follow that order, although since 6 August 2026 minor developments can go straight to off-site gains.

### How much do statutory biodiversity credits cost?

Between £42,000 and £650,000 per credit for area habitats, depending on the habitat tier, £44,000 for hedgerows and £230,000 for watercourses. Two credits are needed for every biodiversity unit, so a unit of low-distinctiveness habitat costs £84,000 through credits.

### How long must BNG habitats be maintained?

At least 30 years for off-site gains and significant on-site gains. The commitment is set out in a section 106 planning obligation or a conservation covenant, and off-site gains must be registered on the national biodiversity gain sites register.

### Is biodiversity net gain working?

It is too early to say from monitoring data, because most BNG habitat is only a few years old. Studies of early BNG plans found that most gains were promised on development sites themselves, where legal security and monitoring are weakest, so enforcement over 30 years is the key test.

Understand the law behind UK nature

Plain-English guides to biodiversity net gain, protected species and the policies shaping nature recovery in England.

[BNG regulations and exemptions](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-regulations)

[How the BNG metric works](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric)

Sources: [Environment Act 2021](https://www.legislation.gov.uk/ukpga/2021/30/contents/enacted); [Planning Practice Guidance: biodiversity net gain](https://www.gov.uk/guidance/biodiversity-net-gain); [GOV.UK, Understanding BNG](https://www.gov.uk/guidance/understanding-biodiversity-net-gain); [GOV.UK, exempt developments](https://www.gov.uk/guidance/biodiversity-net-gain-exempt-developments); [GOV.UK, statutory credit prices](https://www.gov.uk/guidance/statutory-biodiversity-credit-prices); [GOV.UK, statutory credits](https://www.gov.uk/guidance/statutory-biodiversity-credits); [GOV.UK, legal agreements](https://www.gov.uk/guidance/enter-a-legal-agreement-for-biodiversity-net-gain); [GOV.UK, BNG for NSIPs](https://www.gov.uk/guidance/biodiversity-net-gain-nationally-significant-infrastructure-projects); [SI 2026/790](https://www.legislation.gov.uk/uksi/2026/790/contents/made); [Defra credits report 2024–25](https://www.gov.uk/government/publications/biodiversity-net-gain-statutory-credits-annual-report-2024-to-2025/biodiversity-net-gain-statutory-credits-annual-report-2024-to-2025); [Defra credits report 2025–26](https://www.gov.uk/government/publications/biodiversity-net-gain-bng-statutory-credit-reports-2025-to-2026/biodiversity-net-gain-bng-statutory-credits-report-1-april-2025-to-31-march-2026); [GOV.UK, LNRS areas](https://www.gov.uk/government/publications/local-nature-recovery-strategies-areas-and-responsible-authorities); [State of Nature 2023](https://stateofnature.org.uk/); [zu Ermgassen et al. 2021](https://doi.org/10.1111/conl.12820); [Rampling et al. 2024](https://doi.org/10.1111/cobi.14198).

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Published by [Clwyd Probert](https://www.pixcellence.co.uk/blog/author/clwyd-probert) October 29, 2026

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[![](https://www.pixcellence.co.uk/hubfs/blog/images/statutory-biodiversity-metric-hero-hero-1.webp) Read More](https://www.pixcellence.co.uk/blog/statutory-biodiversity-metric-explained-guide)

[biodiversity](https://www.pixcellence.co.uk/blog/tag/biodiversity)

 By [Clwyd Probert](https://www.pixcellence.co.uk/blog/author/clwyd-probert) on October 29, 2026

### [Statutory Biodiversity Metric Explained: How England Measures Net Gain](https://www.pixcellence.co.uk/blog/statutory-biodiversity-metric-explained-guide)

[![](https://www.pixcellence.co.uk/hubfs/blog/images/bng-regulations-hero-hero-1.webp) Read More](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-regulations)

[biodiversity](https://www.pixcellence.co.uk/blog/tag/biodiversity)

 By [Clwyd Probert](https://www.pixcellence.co.uk/blog/author/clwyd-probert) on October 29, 2026

### [Biodiversity Net Gain Regulations: Requirements, Exemptions & Compliance Guide](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-regulations)

[![](https://www.pixcellence.co.uk/hubfs/blog/images/bng-metric-hero-20261029-20261029-001508.webp) Read More](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric)

[biodiversity](https://www.pixcellence.co.uk/blog/tag/biodiversity)

 By [Clwyd Probert](https://www.pixcellence.co.uk/blog/author/clwyd-probert) on October 29, 2026

### [BNG Metric Explained: How Biodiversity Net Gain Is Calculated (2026 Update)](https://www.pixcellence.co.uk/blog/biodiversity-net-gain-metric)

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