Diminution of capitalN.I.
7.—(1) Paragraph (2) applies where—
(a)there is an overpayment of universal credit which occurred as a consequence of an error relating to the amount of a person’s capital; and
(b)the overpayment period is 3 months or more.
(2) Where this paragraph applies, the Department must, for the purpose only of calculating the recoverable amount of that overpayment—
(a)at the end of the first 3 months of the overpayment period, treat the amount of that capital as having been reduced by the amount of universal credit overpaid during those 3 months;
(b)at the end of each subsequent period of 3 months, if any, of the overpayment period, treat the amount of that capital as having been further reduced by the amount of universal credit overpaid during the immediately preceding 3 months.
(3) Capital is not to be treated as reduced over any period other than 3 months in any circumstances other than those for which paragraph (2) provides.