As at 23 June 2006 104,230 payments had been made in respect of Single Payment Scheme applications. This figure consists of full and partial payments. Work is continuing by the Rural Payments Agency to pay as many claims as possible using a variety of methods by the end of the payment window on 30 June.
Payments have been calculated and paid based on the number of entitlements established, including a substantial number of partial payments, where the payment was calculated on the basis of an estimated number of entitlements.
Details of payments made in England up to 30 June 2006, including by constituency and county, are not presently available but will be published in due course.
The chief executive of the RPA was replaced after advising Ministers that, contrary to earlier assurances, the bulk of 2005 Single Payment Scheme (SPS) payments would not be made by the end of March. The current interim chief executive, who is now responsible for turning the system around, will be eligible for a bonus payment at the end of this financial year subject to the achievement of challenging targets. These will be set in the light of his plans to improve the RPA’s performance and will certainly cover the administration of the SPS.
The main third parties whose services have been used to set up the administration of the Single Payment Scheme are Accenture, Infoterra and Black & Veatch. Payments made to date to each of these companies are detailed as follows:
Main third party £ million Accenture 49.9 Infoterra 9.36 Black & Veatch 0.4
Main third party
Black & Veatch
In addition, the Rural Payments Agency has employed agency staff and consultants.
(2) how much the European Commission will fine the UK Government for missing the 30 June 2006 deadline for Single Farm Payment if (a) 85 per cent., (b) 86 per cent., (c) 87 per cent., (d) 88 per cent., (e) 89 per cent., (f) 90 per cent., (g) 91 per cent., (h) 92 per cent., (i) 93 per cent., (j) 94 per cent., (k) 95 per cent., (l) 96 per cent., (m) 97 per cent., (n) 98 per cent., (o) 99 per cent. have been paid by the deadline.
The end of the regulatory payment window for the 2005 Single Payment Scheme (SPS) is 30 June 2006. Discussions with the European Commission suggest that a formal extension to that window is unlikely, but those discussions will continue, focussed on the application of separate regulatory requirements on the EU funding of payments. As things stand, those requirements are, in summary, that where payments made after 30 June in any member state amount to 4 per cent. or less of what was paid out before that date, no reduction in EU funding will be imposed. For any amounts outstanding after 30 June over and above the 4 per cent. threshold, reductions will apply as follows:
Month Percentage up to 1 10 up to 2 25 up to 3 45 up to 4 70 up to 5 or more 100
up to 1
up to 2
up to 3
up to 4
up to 5 or more
Furthermore, where the 4 per cent. threshold has not been used by 15 October, it will be reduced to 2 per cent.
Whether there is any reduction in EU funding of UK 2005 SPS payments and, if so, how much will, therefore, depend on the amount and timing of any payments made after 30 June deadline across the UK.