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10.—(1) Where any part of an authority’s qualifying expenditure is attributable to a rebate granted in respect of the reasonable amount which a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985(1) for board and lodging accommodation made available to that person, for the purposes of article 3(1)(b), the appropriate amount shall be–
(a)if the rebate granted is the same as or less than the difference between the weekly eligible rent and the appropriate maximum amount, nil per cent. of the qualifying expenditure attributable to such rebate;
(b)if the rebate granted is greater than the difference between the weekly eligible rent and the appropriate maximum amount, nil per cent. of the portion of qualifying expenditure attributable to such rebate which is equal to the excess and 97 per cent. of the balance.
(2) In paragraph (1) the appropriate maximum amount shall be determined in accordance with the formula–
Where–
A is the weekly amount specified in column (2) of Schedule 5 in relation to an authority specified in column (1) of that Schedule;
B is the number equal to the number of persons aged 11 or over in respect of whom the accommodation has been made available; and
C is the product of £6 multiplied by the number equal to the number of persons aged under 11 in respect of whom the accommodation has been made available.
(3) In this article “board and lodging accommodation” means–
(a)accommodation provided for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which are both cooked or prepared and consumed in that accommodation or associated premises; or
(b)accommodation provided in a hotel, guest house, lodging home or some similar establishment,
but it does not include accommodation in a residential care home or nursing home within the meaning of the Income Support (General) Regulations 1987(2) nor in a hostel within the meaning of regulation 12A of the Regulations(3).
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