Chapter 2: Direct Payments After EU Exit Section 10: Power to provide for the continuation of the basic payment scheme beyond 2020
This section provides the Secretary of State with a power to make provision for the continuation of the basic payment scheme in England beyond 2020. The power in this section can only be exercised until the Department replaces the current basic payment scheme with delinked payments (which can occur, at the earliest, in 2022) or until Direct Payments are phased out completely at the end of the agricultural transition period.
	The Direct Payments Regulation, which governs the basic payment scheme and became retained EU law for the 2020 scheme year at 11pm on 31 January 2020, does not contain a financial allocation after the 2020 scheme year. That Regulation only specifies annual financial ceilings in Annexes II and III up to, and including, the 2020 scheme year. The financial ceilings are used as the basis for calculating Direct Payments. There are no ceilings specified for 2021 or later years. Without a power to specify the Direct Payments ceiling, the Department could not make payments under the basic payment scheme after 2020.
	This section is only concerned with payments under the basic payment scheme and is not concerned whatsoever with delinked payments. The power to make delinked payments is contained in section 12.
	Subsection (1) provides the power for the Secretary of State to make regulations that modify the legislation governing the basic payment scheme, with the express purpose of ensuring that the basic payment scheme in England can continue for one or more years beyond 2020. The scheme cannot be extended if payments under the scheme have ceased by virtue of section 8(2) (the end of the agricultural transition period) or 12(7)(a) (the introduction of delinked payments). The power in subsection (1) is beyond the scope of section 9 which is concerned with modifications that, in the opinion of the Secretary of State, serve the purposes defined in that section.
	Subsection (2) specifies that the power under subsection (1) includes a power to determine the Direct Payments ceiling in a specified manner, instead of, for example, specifying the amount in the Direct Payments Regulation. There is an important restriction in subsection (3)(a), namely, the Direct Payments ceiling for the relevant year, once determined, must be published as soon as practicable after it is made. Subsection (3)(b) allows the Secretary of State to delegate the determination of the Direct Payments ceiling to any person.
	Subsection (4) provides definitions for certain terms used in this section.
	Subsection (5) means that this section does not affect any power in the rest of Chapter 2 or any other enactment from being able to amend or revoke legislation applicable to the basic payment scheme after 2020.
	Subsection (6) specifies that regulations made under this section are subject to the affirmative resolution procedure.