8.—(1) Where any part of an authority’s qualifying expenditure is attributable to an overpayment of rebates or allowances its subsidy for the year in respect of such part shall be calculated in accordance with paragraph (2).
(2) Subject to paragraph (3), 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 qualifying expenditure attributable to 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 qualifying expenditure attributable to the overpayment as has not been recovered by the authority; or
(c)in the case of any other overpayment, 30 per cent. of the qualifying expenditure attributable to the overpayment.
(3) This article shall not apply in a case to which paragraph (15) of regulation 72 of the Regulations (time and manner in which claims are to be made) applies.