18/01/07 - Interest Payments for Single Payment Scheme (SPS) 2005 Customers
The latest run of Interest payments is underway to customers who have received their full Single Payment Scheme (SPS) 2005 payment after the 30 June regulatory payment window and since the previous Interest payments were made in December 2006.These payments have been made under conditions set out by Environment Secretary David Miliband.
In his oral statement in the House of Commons on 22 June the Secretary of State said he had authorised RPA to make the interest payments at the London Interbank Offered Rate (LIBOR) +1%, calculated from 1 July, subject to a minimum interest payment level of £50.
A total of 546 customers are receiving £139,266 in interest payments on this run and RPA is writing to those customers.
An interest calculator contained in the letter can help customers work out the interest and is shown at the foot of this page.
RPA will continue to make interest payments along these established lines once each final payment is made to customers still awaiting full or partial payment top-ups.
Customers wishing to query their interest payment are invited to telephone the Customer Service Centre on 0845 603 7777 between 8:30am and 5pm Monday to Friday, quoting their Single Business Identifier (SBI) number and the reference shown at the top of the letter.
The interest payable is at the 3 month London Interbank Offered Rate (LIBOR) +1%.
Since the end of June the interest rates have been:
Daily interest on £1000
1st and 2nd July (1)
3rd to 31st July (2)
* Rate for 30th June
If you were due a payment of £9,500 which was not made until (say) 8th January the interest due would be:
July rate (1)
| 15.66p x 9.5 x 2 days||= £2.975|
July rate (2)
| 15.75p x 9.5 x 29 days||= £43.391|
| 15.86p x 9.5 x 31 days||= £46.708|
| 16.39p x 9.5 x 30 days||= £46.712|
| 16.66p x 9.5 x 31 days||= £49.064|
| 16.98p x 9.5 x 30 days||= £48.393|
| 17.15p x 9.5 x 31 days||= £50.507|
| 17.33p x 9.5 x 8 days||= £13.171|
| Total payable||= £300.92|
Page published: 15 September 2010