In my statement of 2 July (col. 41WS), I reported that the Rural Payments Agency (RPA) had met its formal target of making 96.14% of payments under the 2006 Single Payment Scheme (SPS) by 30 June. Outstanding cases continue to be processed and there now remain about 60 claimants who have received a partial payment and await the balancing sum. Work has also to be completed in respect of a further 80 claims, mainly small ones and those affected by legal issues such as probate. Starting in the New Year, interest will be paid to claimants on sums paid after 30 June 2007 on the same basis as for the 2005 scheme.

I also reported in July that a review was underway of 2005 cases where entitlement values have been identified for review and possible adjustment, upwards or downwards, to 2005 and 2006 payments. Further investigation led to a total of some 38,250 cases for review. The review has been completed in all but 1,150 cases, mostly those identified for possible correction subsequent to July. Where appropriate, additional payments are being made on the reviewed cases. Work is also underway to recover overpayments.

Alongside those activities, RPA has been processing the 106,000 or so claims that have been submitted under the 2007 SPS. The necessary system and process updates have progressed to plan, allowing a pilot run of full payments to be made on 10 December. Having evaluated the results of that pilot, the RPA Chief Executive has now authorised a series of full payment runs with the first payments expected to be with claimants this week. With payments having been initiated a month earlier than for the last Scheme year, the Agency is currently on track to meet its targets for 2007 SPS of making 75% of the total value of payments by end March 2008 and 90% by end May 2008.

I will continue to update the House on progress.