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39.—(1) This regulation applies where—
(a)a person has been paid a sum by way of income support or jobseeker’s allowance; and
(b)it is subsequently determined that—
(i)child benefit or guardian’s allowance should be awarded or is payable in lieu of the income support or jobseeker’s allowance; and
(ii)the income support or jobseeker’s allowance was not payable.
(2) Subject to regulation 40, any sum of income support or jobseeker’s allowance in respect of the period covered by the subsequent determination—
(a)shall be offset against any arrears of entitlement to the child benefit or guardian’s allowance payable for that period by virtue of that determination; and
(b)except to the extent that it exceeds them, the sum so paid shall be treated as properly paid on account of the arrears.
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