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 5:00pm 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
1 to 31 October	7.3075	19.97p
1 to 30 November	6.7763	18.51p

Example

If you were due a payment of £4,500 which was not made until (say) 3 November 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 30 September	18.44p x 4.5 x 30	£24.894
1 to 31 October	19.97p x 4.5 x 31	£27.858
1 to 3 November	18.51p x 4.5 x 3	£2.499
	Total payable:	£107.535