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10.—(1) Where any part of an authority’s housing benefit qualifying expenditure is attributable to a rebate granted in respect of the amount which a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985(1) or section 35(2)(b) of the Housing (Scotland) Act 1987(2), as the case may be, for board and lodging accomodation made available to that person, and the amount of weekly eligible rent exceeds the appropriate maximum amount specified in column (2) of Schedule 6 for the area in which the accommodation is situated, for the purposes of article 4(1)(b)(ii), 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 that part of the housing benefit 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 that part of the housing benefit qualifying expenditure attributable to such rebate which is equal to the excess, and 97 per cent. of that part of the housing benefit qualifying expenditure attributable to 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 6 for the area in which the accommodation is situated 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 £6.30 multiplied by the number equal to the number of persons aged under 11 in respect of whom the accommodation has been made available.
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