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5. For regulation 104 of the principal Regulations (sums to be deducted in calculating recoverable overpayments) there shall be substituted the following regulation—
104.—(1) Subject to paragraph (3) in calculating the amount of a recoverable overpayment, the appropriate authority shall deduct any amount of housing benefit which should have been determined to be payable in respect of the whole or part of the overpayment period—
(a)on the basis of the claim as presented to the authority;
(b)on the basis of the claim as it would have appeared had any misrepresentation or non-disclosure been remedied before the determination, or
(c)on the basis of the claim as it would have appeared if any change of circumstances had been notified at the time that change occurred.
(2) For the purposes of paragraph (1)(c) where the change of circumstances is the cessation of entitlement to income support or income-based jobseeker’s allowance the deduction shall be made as if that change of circumstances had not ended the benefit period.
(3) In the case of a rent or rate rebate only, in calculating the amount of a recoverable overpayment the appropriate authority may deduct so much of any payment by way of rent or rates in respect of the overpayment period which exceeds the amount, if any, which the claimant was liable to pay for that period under the original erroneous determination.”.
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