Paragraph 1

(1)

E (contribution to benefit costs) is zero when either A is less than or equal to 1.045 or F is less than or equal to J. (For A, F and J see paragraphs 2, 3 and 4 respectively.)

(2)

Otherwise, E is equal to—

\frac{(C - M) \times T \times B \times Z}{1 - (B \times Z)}

(3)

For C, M and T see paragraphs 2(2), 5 and 5(4) respectively.

(4)

B is the amount shown in relation to the authority in column 2 of Table A in this Schedule, being the lower of—

(a)

the proportion (estimated by the Secretary of State) of council tax yield for the authority in the financial year beginning with 1st April 2000 accounted for by council tax benefit;

(b)

the national average proportion (as so estimated) of council tax yield for authorities in that financial year accounted for by council tax benefit.

(5)

Z (proportion of council tax benefit subsidy to be borne by the authority) is the amount shown in column 2 of Table B in this Schedule which corresponds with the amount N for the authority. (For N see paragraph 6.)