The first run of interest payments have been made to customers who have received their full Single Payment Scheme (SPS) 2006 payment after the 30 June 2007 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 2 July 2007 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 scheme. 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.

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 entitlement adjustments have 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) and the reference shown at the top of the letter.


INTEREST CALCULATOR

The interest payable is at the 3 month London Interbank Offered Rate (LIBOR) +1%.

Since the end of June 2007 the interest rates have been:

Dates	Rate (%)	Daily interest on £1000
1 July 2007*	6.8194	18.68p
3 to 31st July 2007	7.0006	19.18p
1 August to 2 September 2007	7.0488	19.31p
3 to 30 September 2007	7.7400	21.21p
October 2007	7.2775	19.94p
1 November to 2 December 2007	7.2838	19.96p
3 December 2007 to 1 January 2008	7.6200	20.88p
2 January to 31 January 2008	6.8900	18.83p

* Rate for 30th June 2007

Example

If you were due a payment of £7,500 which was not made until (say) 8th January 2008 the interest due would be:

Month	Rate x Value x days	Months interest
1 July 2007	18.68p x 7.5 x 1 days	1.401
2 to 31 July 2007	19.18p x 7.5 x 30 days	43.155
1 August to 2 September 2007	19.31p x 7.5 x 33 days	47.792
3 to 30 September 2007	21.21p x 7.5 x 28 days	56.419
October 2007	19.94p x 7.5 x 31 days	58.723
1 November to 2 December 2007	19.96p x 7.5 x 32 days	47.904
3 December to 1 January 2008	20.88p x 7.5 x 30 days	46.980
2 to 8 January 2008	18.83p x 7.5 x 7 days	9.886
	Total Payable	288.020