5.—(1) Subject to paragraph (3), where any part of an authority’s qualifying expenditure is attributable to an increase exceeding 13 per cent. in the average of the eligible rents of the persons to whom it granted allowances, that authority’s subsidy for the relevant year in respect of such part shall be 25 per cent. of an amount calculated in accordance with Schedule 3.
(2) In this article “rent” includes all the payments in respect of a dwelling specified in paragraph (1) of regulation 10 of the Regulations (rent), less, except where a person is separately liable for rates or charges for water, sewerage or allied environmental services, the deductions in respect of rates and such charges set out in paragraph (6) of that regulation.
(3) This article shall not apply in a case to which article 7 applies.