The latest run of interest payments have been made to customers who have received their full Single Payment Scheme (SPS) 2005 payment after the 30 June 2006 regulatory payment window and since the previous Interest payments were made. These payments have been made under conditions set out by the Secretary of State.
In his oral statement in the House of Commons on 22 June 2006 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.
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 and includes payments made where “redefinition work” has now been completed.
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.
Please note that interest payments will be made to customers under the 2006 SPS under the same conditions after 30 June 2007.
INTEREST CALCULATOR
The interest payable is at the 3 month London Interbank Offered Rate (LIBOR) +1%.
Since the end of June 2006 the interest rates have been:
Dates | Rate (%) | Daily interest on £1000 |
1st and 2nd July (1) | 5.7175* | 15.66p |
3rd to 31st July (2) | 5.75 | 15.75p |
August | 5.79 | 15.86p |
September | 5.9825 | 16.39p |
October | 6.0825 | 16.66p |
November | 6.1963 | 16.98p |
December | 6.26 | 17.15p |
2007 January | 6.3244 | 17.33p |
February | 6.5956 | 18.07p |
March and 1st April | 6.5325 | 17.90p |
2nd to 30th April | 6.6269 | 18.16p |
May | 6.7256 | 18.43p |
June and 1st July | 6.8194 | 18.68p |
2nd to 31st July | 7.0006 | 19.18p |
August and 1st & 2nd Sept | 7.0488 | 19.31p |
3rd to 30th September | 7.74 | 21.21p |
* Rate for 30th June 2006
Example
If you were due a payment of £9,500 which was not made until (say) 8th Sept the interest due would be:
Month | Rate x Value x days | Months interest |
| | |
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 |
August rate | 15.86p x 9.5 x 31 days | 46.708 |
Sept rate | 16.39p x 9.5 x 30 days | 46.712 |
Oct rate | 16.66p x 9.5 x 31 days | 49.064 |
Nov rate | 16.98 x 9.5 x 30 days | 48.393 |
Dec rate | 17.15p x 9.5 x 31 days | 50.507 |
Jan rate | 17.33p x 9.5 x 31 days | 51.037 |
Feb rate | 18.07p x 9.5 x 28 days | 48.066 |
March (and 1st April) rate | 17.90p x 9.5 x 32 days | 54.416 |
April (from 2nd April) rate | 18.16p x 9.5 x 29 days | 50.031 |
May rate | 18.43p x 9.5 x 31 days | 54.276 |
June (and 1st July) rate | 18.68p x 9.5 x 31 days | 55.013 |
July (from 2nd July) rate | 19.18p x 9.5 x 30 days | 54.663 |
August (and 1st & 2nd Sept) rate | 19.31p x 9.5 x 33 days | 60.537 |
Sept rate | 21.21p x 9.5 x 6 days | 12.090 |
| | |
| Total Payable | 727.879 |
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