798.This paragraph will allow the local authority to supersede their decision (whether as originally made or as revised under paragraph 3), or, in prescribed circumstances, a decision made by an appeal tribunal or a Commissioner. A decision which supersedes an earlier decision would not normally take effect from the date of the decision being superseded. The local authority would supersede a decision in cases where a revision under paragraph 3 was inappropriate (for example, because there had been a change of circumstances, or in a case where a person did not apply for a revision within one month of the disputed decision). A new decision could be made either in response to an application or on the local authority’s own initiative.
Sub-paragraph (1) provides for a local authority to supersede their own decisions, and those of appeal tribunals or Commissioners, both on application or on their own initiative.
Sub-paragraph (2) defines the term “appropriate relevant authority” for the purposes of this paragraph as the authority which made the decision being superseded or appealed.
Sub-paragraph (3) provides that in superseding a decision the local authority need only consider the particular issue (or issues) raised by the application for superseding, or (if acting on their own initiative) which caused them to consider superseding the decision.
Sub-paragraph (4) allows regulations to prescribe cases, circumstances and procedures to enable decisions to be superseded.  In line with regulations applying to other social security benefits, it is proposed that, unless a decision falls to be revised, it will be superseded where it is wrong in fact or law.  A decision will also be superseded where there has been a relevant change of circumstances.
Sub-paragraph (5) provides that, generally, a supersession will take effect on the day on which it was made or, where applicable, the day on which the application was made, unless regulations under sub-paragraph (6) provide otherwise, or if the revision was made after a decision in another case had held that an authority’s decision was wrong in law (in which case paragraph 18 applies).
Sub-paragraph (6) allows for regulations to be made for cases or circumstances in which a decision to supersede an earlier decision would take effect from a different date from the date it is made or the date an application is made.  In line with other social security benefits, where a decision is superseded with a decision which is to the claimant’s advantage because of a change of circumstances, it is intended that regulations would provide that the new decision may take effect from the date of change, where the change is notified within one month.  Otherwise, the new decision would take effect from the date the change is notified, or the date the decision is made where there is no notification.  Where a new decision was disadvantageous, it would always take effect from the date of change.
It is also intended that regulations under sub-paragraphs (4) and (6) would include provision for the local authority to supersede a decision of an appeal tribunal or Commissioner where that decision was made in ignorance of, or based on a mistake as to, a material fact, and where the decision of the tribunal was based on a determination of a Commissioner or court in another case which has subsequently been overturned by a (higher) court.
Part III: Social Security Administration Housing Benefit and Council Tax Benefit Schedule 7 Paragraph 4: Decisions superseding earlier decisions