Paragraph 7 Determination of aggregate non-core spending obligation

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 (“A_t-2”); and

(b)

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