Secton 9(6) of the Social Security Act 1998: "Except in prescribed circumstances, an appeal against a decision of the Secretary of State shall lapse if the decision is revised under this section before the appeal is determined". The "prescribed circumstances" are that the revised decision is no more favourable to the appellant than the original one.
So I'm afraid that if the revised decision in fact is more favourable, the Tribunal looks likely to find itself without jurisdiction. The only argument would be if the issue in question is not the amount of any OP but either fact of overpayemnt or recoverability, if that is totally unaffected by the periods/amounts involved. However, if the cahnge is directly linked (eg, they have now decided that for part of the original period there was no OP, or that it is only partly recoverable because of date of knowledge), then that may not help.
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