Regulation 7 Diminution of capital

(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 Secretary of State 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.