“I for one am impressed that the DPS, which is funded by the interest on the deposits it holds, has managed to keep going through such a long period of rock-bottom interest rates. Surely their contingency planning couldn’t have foreseen what is a sea change in fiscal policy. All power to them for adapting to a rapidly changing environment.”
It emerged in the press this week that the DPS had a clause in it’s contract with the government which required central funds (or The Taxpayer, if you read the tabloids) to bail out the DPS if it didn’t make enough money from interest alone. With interest rates so low for so long, the DPS, which is funded by interest on the deposits it holds, had gone cap in hand to the treasury, admitting to a projected shortfall of over £30million over the life of the contract.