Phosphate credits Lugg catchment
Latest update March 2025
1 March 2025 Herefordshire Council's position on phosphate credits
The council has released 247.9kg of phosphate credits, from the Luston and Tarrington wetlands, which are now available for trade. These credits have to date released planning permissions for 797 new homes in the north of the county.
Additionally, phosphate credits have been offered for a further 360 homes on the allocations list, with the council either awaiting confirmation that these credits are required or processing these applications.
Currently, there are 184 homes on the list that have not yet been allocated credits, but there are still some remaining credits available. Further strategic mitigation is being developed according to our phasing plan and we expect to make further mitigation available by summer 2025.
To support us in administering the phosphate credits we would ask:
- Developers employ the best environmental technologies available to minimise both environmental impact and the cost of mitigation required.
- Developers who have been offered credits confirm as soon as possible if they wish to take up the credit offer.
Summary of Herefordshire Council's phosphate credit sales November 2024
As of November 2024, the Council has made 247.8kg of phosphate credits available through the Luston and Tarrington Wetlands for trade. These credits have been used to mitigate the phosphate impact of developments within the Lugg catchment area. So far, 742 homes have been granted planning permission using 99.06kg of these credits.
Additionally, 462 homes on the Allocations List have been offered phosphate credits. The Council is either waiting for confirmation that these credits are needed or is still reviewing the planning applications.
Currently, there are 250 homes on the list that have not yet been allocated credits, but there are still credits available. Since each development's phosphate load needs to be calculated individually, we cannot yet confirm exactly how far the remaining credits will stretch. However, based on current demand, we expect there will be enough credits to cover the needs of the Allocations List.
We are also working on developing further strategic mitigation measures and expect additional credits to be available by mid-2025.
Update 19 July 2024
The council has paved the way with the development of the nutrient budget calculator and is now progressing a pioneering natural solution to nutrient management. Integrated wetlands will address point source pollution and provide mitigation through the trading of phosphate credits, which will unlock housing development in the north of the county and provide river betterment.
This page provides an update on where your application is placed in the waiting list for credits, guidance on updating your planning application and on using the nutrient budget calculator to calculate the nutrient budget of the proposal.
Updated phosphate credits position
Following approval of Phase 2 of the council's Phosphate Mitigation Strategy by Cabinet on 29 February 2024, a further 77kg of phosphate credits from our second wetland at Tarrington, are now available for purchase.
Credits from the Luston Wetland can be applied to development anywhere within the Lugg catchment and can effectively mitigate development impacting upon the whole of the nutrient neutral section of the River Wye SAC. Please view the Luston Wetland mitigation area map July 2024.
Credits from the Tarrington Wetland can only be applied to a small area of the Lugg catchment. Mitigation delivered by the Tarrington Wetland enters the River Wye SAC at the confluence between the River Wye and the River Frome (at Grid reference SO 56048 38642) and it cannot be applied to development upstream of this point. Please view the Tarrington Wetland mitigation area map July 2024.
You can find out what hydrological sub-catchment your development is in using the River Lugg sub-catchments map.
View the list of Welsh Water waste water treatment works in the Lugg catchment.
Further detail around development impact points and mitigation impact points can be found in the FAQs.
The Council has amended its approach to credit allocation to allow effective use of available credits:
- Phosphate credits will now be allocated in validation date order in two streams:
- 1 - applications requiring credits from the Luston wetland and
- 2 - applications using credits from the Tarrington wetland. This to ensure that best use is made of the Tarrington credits and that they are applied to qualifying developments.
- Credits will now be available to purchase by paying a 10% non-refundable deposit at the point of signing the Section 106 agreement with the balance being payable prior to the commencement of development.
You can view the Record of Officer Decision amendments to phosphate trading process July 2024 setting out these changes.
Occupation of developments relying on Tarrington credits
The Tarrington Wetland is legally secure and can be relied upon for the purposes of Habitats Regulations Assessment but has not yet been constructed or made operational. On this basis the Council has agreed with Natural England that it is necessary for developments relying upon credits from this wetland to be subject to an occupation restriction.
Developments using Tarrington credits cannot be occupied until 1 June 2026.
This restriction will be secured by planning condition on any relevant permissions.
The Luston wetland is fully operational and does not require an occupation restriction.
Important information about allocation of phosphate credits
If you are on the identified list as eligible for credits, please review the published guidance and prepare updated documents as required. Officers will shortly be in contact with each individual applicant to advise on securing the purchase of credits.
- To see where you are in the waiting list for credits and to understand which wetland credits will be used for your development please view our current Phosphate credit allocations list. This list includes all applications in the Held Phosphates list.
- Herefordshire Council keeps complete records relating to our wetlands and records which developments have been given permission, how many phosphate credits have been used and how many remain.
For full details please view Herefordshire Council's Phosphate credit bank list
- For guidance on the information we require view River Lugg catchment update June 2022 Advice for agents and applicants - applications review and send with your required documents
- Complete the applications review checklist and send with your required documents
- For developments using non-mains foul drainage see:
Allocation of credits will be managed by the planning team. Planning case officers will work through the applications in the two streams on the waiting list in date order. When an application is ready to be determined, the case officer will invite you to apply for credits.
- For more about the credit allocation process view Phosphate credits: allocation process information for developers
- A Phosphate S106 agreement will need to be signed when purchasing credits
Using Sustainable Urban Drainage Systems (SuDS) to reduce phosphorus in surface water
Advice on using Sustainable Urban Drainage Systems (SuDS) to reduce phosphorus in surface water has been issued by CIRIA.
The latest Natural England Budget Calculator also allows mitigation delivered by SuDS to be taken into account.
- Sustainable Urban Drainage Systems (SuDS) can form a key part of appropriately addressing phosphate in surface water within development sites. CIRIA have released a piece of good practice guidance titled ‘Using SuDS to reduce phosphorus in surface water runoff’ (2022), which sets out how various SuDS treatment options may be able to be used to address urban runoff of phosphate and how these treatment options may function together.
Other forms of phosphorous mitigation
The phosphate impacts associated with development can be mitigated in a number of ways. The development impact must match, or be downstream within the River Wye SAC, of the mitigation impact point.
Potential mitigation options include:
- Purchase of credits from the council scheme.
- Purchase of credits from a private phosphate bank which has been assessed by the council and agreed as acceptable mitigation.
- Upgrade of the foul drainage system (legally operating septic tank or old packaged treatment plant) at one or more properties within the same catchment as the development.
- Planting of orchards downslope of foul drainage fields where the Natural England methodology for calculating phosphate uptake by orchard trees has been utilised.
- Phosphate reducing land use changes where these have been agreed by Natural England and Herefordshire Council and can be legally secured.
For detailed discussions relating to bespoke mitigation including all proposed land use changes the council operates an Environmental Advice Service.
In some circumstances the council may advise developers to use Natural England’s paid environmental advice service.
Phosphate credits FAQs
Queries about the credit allocation process - Email us with your query at phosphates@herefordshire.gov.uk.
We can't reply individually but will post regular updates to questions asked on the Phosphate credits FAQs.