(1)The Secretary of State may—

(a)make a scheme for compensating any local authority which, or candidate who, incurs additional expenditure as a result of any provision of, or made under, this Act, and

(b)make payments in accordance with the scheme.

(2)Claims for compensation must be made in accordance with the scheme.

(3)The scheme may provide that in the case of a candidate for a registered political party any payment of compensation may be made to that party rather than to the candidate.

(4)The Secretary of State’s expenditure under this section is to be paid out of money provided by Parliament.

(5)“Registered political party” has such meaning as may be specified in the scheme.