7.—(1) Regulation 61 of the Principal Regulations(1) maximum housing benefit) shall be amended in accordance with the following paragraphs.
(2) In paragraph (1) for “Subject to paragraph (2)” there shall be substituted the words “Subject to the following provisions of this regulation”.
(3) After paragraph (2) there shall be added the following paragraphs—
“(3) Where in any case—
(a)regulation 11 applies;
(b)the maximum rent is less than the amount which would be the claimant’s eligible rent if regulation 11 did not apply (“his reckonable rent”); and
(c)the appropriate authority is satisfied that—
(i)an amount by way of housing benefit would fall to be payable to the claimant; and
(ii)unless that amount is increased, the claimant or a member of his family will suffer exceptional hardship;
the authority may determine that the amount of the person’s appropriate maximum housing benefit calculated in accordance with paragraph (1) shall be such increased amount as it considers appropriate in the particular circumstances of the case, but so that the amount of housing benefit payable to that person, including any such increase, shall not exceed his reckonable rent calculated on a weekly basis in accordance with regulations 69 and 70 (calculation of weekly amounts and rent free periods), after any deduction made in accordance with section 130(3)(b) of the Contributions and Benefits Act (taper) and regulation 63 (non-dependant deductions) and for the purposes of this paragraph “eligible rent” in those regulations shall be taken to mean his reckonable rent.
(4) In a case where paragraphs (2) and (3) both apply an authority may pay an increased amount under both those paragraphs.”.