Miliband provides update on SPS

Making an oral statement in Parliament today, Mr Miliband explained that, as of 20 June, �1.38 billion has been paid to more than 100,000 applicants � representing more than 90% of the total fund.

As a result, 82,571 claims have been settled in full, while 18,785 applicants have received a partial payment and are awaiting their �top-up' payment.

He again stressed the importance for the RPA to settle the claims of �1,000 or more where no payment had been made.

�The number of claimants in this category is now approximately 2,300,� he explained. �I recognise the hardship involved for them and deeply regret the distress caused.

�The RPA is taking further steps to pay these complex claims, including discussing issues direct with claimants and, where feasible, bringing parties together in cases of continuing disagreement. The RPA has written twice to all individuals concerned.�

Mr Miliband also recognised the importance of the unresolved Hill Farm Allowance (HFA) payments.

�Of the approximately 10,500 eligible HFA claims, 5,000 have been paid in full and a further 900 authorised for partial payments,� he said. �Full and partial payments are continuing to be made.�

The EU defined payment window for making 2005 SPS payments runs from 1 December until 30 June.

The Environment Secretary said that work is continuing to pay as many claims as possible by this date.

Farming leaders have already contacted Mr Miliband on behalf of any farmers who fail to receive the full sum due to them within the payment window.

And he has therefore authorised the RPA to make interest payments of the London Interbank Offered Rate +1%, calculated from 1 July, for any payments delayed by the Agency.

This will be subject to a minimum interest payment level of �50.

He also confirmed that work on delivering the 2006 SPS is underway and that it will be �very challenging�.

�I know that this year's problems have caused real distress and I repeat the apology to farmers I have made before.
�I can assure the House that the RPA chief executive Tony Cooper, with the support of the Department, will be looking to take interim steps to aid the recovery process and improve the experience of farmers dealing with the Agency to the maximum possible extent.�