Does the diminishing capital rule still apply ( as opposed to the dimishing notional capital rule)?
It arose where a person had been overpaid IS/ibJSA, HB or CTB as a result of a failure to disclose or misrepresentation about capital. The amount of capital was assumed to have reduced in 13 week blocks, by the amount of any overpaid benefit.
I can not find a reference to the relevant IS regs.

Thanks

The 'diminishing capital rule' you refer to is Regulation 14 of the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988.

Its discussed on pages 1114 - 1115 of the 2004/2005 CPAG Handbook, and found on pages 709 - 710 of Volume 3 of Social Security Legislation 2003.

Thanks!