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Wales removes £100 cap on subsidy appeals from Jan 2026

Welsh Ministers have approved changes to farm support appeals that remove the long‑standing £100 cap on fees for legacy schemes. The Agricultural Subsidies and Grants Schemes (Appeals) (Wales) (Amendment) Regulations 2025 take effect on 1 January 2026 and allow Ministers to set charges for appeals linked to pre‑2023 Act programmes, according to legislation.gov.uk and Welsh Government guidance.

For farm enterprises, the near‑term headline is price. From 1 January 2026 the Stage 2 fee will be £290 for an oral hearing or £220 for a written hearing, replacing today’s £100/£50 structure set out in Rural Grants and Payments guidance. The Government says the new rates apply across schemes and do not affect TB compensation appeals.

The Welsh Government frames the increase as cost recovery for independent scrutiny rather than a revenue‑raising move. Its Sustainable Farming Scheme FAQ puts the Independent Appeals Panel at £875 per day for three panel members, typically handling three oral appeals or four written appeals daily, with no department overheads included in the fee.

Refund terms matter for cashflow. Current guidance repays the Stage 2 fee when an appeal is wholly or partially successful; the SFS FAQ states that from 1 January 2026 the fee will be refunded when an appeal is accepted in full. That shift raises the cash risk for appellants who secure only a partial change.

The underlying process does not change. Appeals remain two‑stage: a free internal review (Stage 1) followed, if needed, by an Independent Appeals Panel (Stage 2). Timelines are tight: you generally have 60 days to start Stage 1 after the decision letter, and a further 60 days to request Stage 2 after the Stage 1 outcome. Planning around those windows is essential as the new fees begin in January.

Which cases are in scope? The amendment covers appeals tied to pre‑2023 Act schemes referenced in the Agriculture (Wales) Act 2023-legacy CAP‑era support such as the Basic Payment Scheme and rural development. RPW’s own guidance shows the appeals system also covers programmes including Glastir and the Food Business Investment Scheme. From 1 January 2026 the new fee level applies regardless of scheme.

What might this look like on farm? A claimant disputing a £1,500 deduction who opts for a written hearing will need to outlay £220 next year versus £50 today; an oral hearing moves from £100 to £290. The fee is returned on a full win under the new policy, while today’s rules repay fees for partial wins as well. Factor that into year‑end cash budgets and case strategy with your adviser.

For cross‑border context, England’s Rural Payments Agency charges up to £450 for Basic Payment Scheme appeals on disputes above £10,000, while many other schemes attract no fee. On that benchmark, Wales’s 2026 rates sit below England’s top BPS tier but significantly above current Welsh levels.

Ministers told the Senedd this week the reforms modernise the appeals framework and align it with the 2023 Act while preserving independent scrutiny. Our take: the arithmetic is transparent and linked to panel costs, but the end of a hard cap-and tighter refund rules-shift more working‑capital risk onto appellants. Publishing a single, definitive fee and refund policy page before 1 January would help businesses plan with confidence.

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