Modification of subsidy on payments in excess of entitlement made before 1st April 1988

11.—(1) Notwithstanding any provision made under the Social Security and Housing Benefits Act 1982 in respect of housing benefit paid in excess of entitlement, where an overpayment of benefit to which any such provision applies made before 1st April 1988 under that Act is discovered on or after 1st July 1988, an authority’s subsidy in respect of such a payment shall be calculated as set out in paragraph (2).

(2) The amount of that subsidy shall be–

(a) in the case of an overpayment caused by an error of the authority making the payment, 15 per cent. of the overpayment;

(b) in the case of an overpayment caused by an error of a local office of the Department of Social Security, 97 per cent. of so much of the overpayment as has not been recovered by the authority; or

(c) in the case of any other overpayment, 30 per cent. of the overpayment.