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The Warm Home Discount Regulations 2011

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Regulation 12(2)

SCHEDULE 1Aggregate non-core spending obligation

This schedule has no associated Explanatory Memorandum

Determination of aggregate non-core spending obligation

1.  Before determining the amount of the aggregate non-core spending obligation for a scheme year, the Secretary of State must estimate the aggregate amount of benefits (if any) to be provided by scheme suppliers under Part 3 in that scheme year (“the core group spending estimate”).

2.  The amount of the aggregate non-core spending obligation for a scheme year (“year t”) is to be T – E where—

  • T is the overall spending target for year t; and

  • E is the core group spending estimate for year t.

3.  The overall spending target is—

(a)£250 million for scheme year 1; and

(b)subject to any adjustments under paragraphs 4 to 6, £275 million for scheme year 2;

(c)subject to any adjustments under paragraphs 4 to 9—

(i)£300 million for scheme year 3; and

(ii)£310 million for scheme year 4.

4.  Before determining the amount of the aggregate non-core spending obligation for scheme year 2, 3 or 4, (“year t”), the Secretary of State must—

(a)review the core group spending estimate for year t-1; and

(b)increase or reduce that estimate, if it appears to the Secretary of State that the aggregate amount of benefits provided under Part 3 in year t-1 will be greater or less than the estimate.

5.  If the Secretary of State increases the core group spending estimate for year t-1, the overall spending target for year t is to be reduced by a corresponding amount.

6.  If the Secretary of State reduces the core group spending estimate for year t-1, the Secretary of State may increase the overall spending target for year t by an amount not exceeding the amount of that reduction.

7.  Before determining the amount of the obligation for scheme year 3 or 4 (“year t”), the Secretary of State must (in addition to the steps in paragraph 4 to 6) calculate the difference between—

(a)the aggregate amount of benefits provided under Part 3 in year t-2 (“At-2”); and

(b)the core group spending estimate (with any increase or reduction previously made to it) for year t-2 (“Et-2”).

8.  If At-2 is greater than Et-2, the overall spending target for year t is to be reduced by an amount corresponding to the difference between At-2 and Et-2.

9.  If At-2 is less than Et-2, the Secretary of State may increase the overall spending target for year t by an amount not exceeding the difference between At-2 and Et-2.

Interpretation

10.  In this Schedule—

“year t-1” means the scheme year preceding the scheme year for which the amount of the obligation is being determined; and

“year t-2” means the scheme year before year t-1.

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