The UK is reimbursed 66% of the difference between its contribution to the EU budget (excluding traditional own resources) and the amount it receives back from the budget.
In principle, EU Member States share the cost of the UK rebate in proportion to their relative contribution to the EU GNI. However, the financing of the UK correction has been modified over time, granting what is commonly known as 'the rebates on the rebate' to the traditionally most important net contributors to the EU budget.
The December 2005 European Council decided to adjust the UK correction and agreed that non-agricultural expenditure in the new Member States will no longer be included in its calculation base (ie. the pooper new member states were not to be expected to contribute to the cost of the rebate). This change was introduced progressively over the period 2009-2011. The maximum cost to the UK of this measure was limited to EUR 10.5 billion over the period 2007-2013.
The current UK rebate was agreed on by the 1984 Fontainebleau European Council. It has no expiry date.
In 2011, the UK rebate amounted to EUR 3.6 billion.
Commitments are legal promises to spend money on activities whose implementation extends over several financial years.
Payments cover expenditure arising from commitments entered into the EU budget during current and preceding financial years.