05/09/08 - Interest Payments for 2007 Single Payment Scheme
The first run of interest payments have been made to customers who have received their Single Payment Scheme (SPS) 2007 payment after the 30 June 2008 regulatory payment window. These payments have been made under conditions set out by the Secretary of State.
In his written statement in the House of Commons on 3 July 2008 the Secretary of State said interest will be paid to claimants on sums paid after 30 June on the same basis as for the 2005 and 2006 schemes. They will be paid at the London Interbank Offered Rate (LIBOR) +1%, calculated from 1 July, subject to a minimum interest payment level of £50.
The interest calculator below can help claimants 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 a payment is made to claimants, including payments made where entitlement adjustments have now been completed.
Claimants 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) and the reference shown at the top of the letter.
Where appropriate, 2005 and 2006 interest payments will be made in due course.
Interest Calculator
The interest payable is at the 3 month London Interbank Offered Rate (LIBOR) +1%.
Since the end of June 2008 the interest rates have been:
| Dates | Rate (%) | Daily interest on £1,000 |
| 1 to 31 July | 6.9400 | 18.96p |
| 1 to 31 August | 6.7800 | 18.52p |
| 1 to 30 September | 6.7488 | 18.44p |
Example
If you were due a payment of £4,500 which was not made until (say) 3 September 2008 the interest due would be:
| Month | Daily interest x Value x Day | Months interest
(£) |
1 to 31 July | 18.96p x 4.5 x 31 | £26.449 |
1 to 31 August | 18.52p x 4.5 x 31 | £25.835 |
1 to 3 September | 18.44p x 4.5 x 3 | £2.489 |
 | Total payable: | £54.773 |
Page published: 5 September 2008