Reply To: Over Threshold/Over Cap

Julian Hobson

Its a bit academic really!

I don’t think you have any option but to pay over the cap.
The cap will limit the subsidy.
The subsidy budget takes the hit.

The only way that the HN section can take the hit is if they take a hit on their budget to prop up the subsidy budget.

In either case the shortfall on subsidy is paid from general fund which in turn gets its money from CT (and grants etc).

The bottom line is making sure that it is budgeted for in either the HN or Subsidy budgets.

Hope this makes sense