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3.—(1) Subject to paragraphs 4 to 6, where in the case of an appropriate authority in England or in Wales—
(a)α (being the housing benefit amount and the applicable amount calculated under this Part in respect of that appropriate authority) exceeds β (being 120 per cent. of the relevant amount), the applicable amount for that appropriate authority for the relevant year shall be the sum calculated under paragraph 2 less the excess; or
(b)α (being the total of the housing benefit amount and the applicable amount calculated under this Part in respect of that appropriate authority) is less than Υ (being 95 per cent. of the relevant amount) the applicable amount for that appropriate authority shall be the sum calculated under paragraph 2 plus an amount equal to the difference between α and Υ.
(2) The relevant amount for the purposes of this paragraph and paragraph 5 is—
(a)the aggregate of the housing benefit amount and council tax benefit amount payable to that appropriate authority for the financial year ending 31st March 1996 calculated in accordance with Schedules 1 and 2 to the 1996 Order (calculation of subsidy in respect of administration costs); except
(b)in the case of a new authority listed in column (1) of Schedule 13, the figure specified for that authority in column (2) of that Schedule.
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