In-year recovery will have been made because the annual award for 2003/4 was reduced during that year (for whatever reason, change in circumstances or IR error). To make sure that a 'real' overpayment does not occur after April 2004, the weekly payments were reduced to ensure that the total paid during 2003/4 was correct.
After April, the weekly repayments will reflect the revised annual award for 2003/4, but as it will be spread over 52 weeks, it will be higher than the weekly payments being made before April.
The Inland Revenue have said (at one of their seminars) that no notification will be sent in April showing these changes. When asked, they said it is the claimants responsibility to provide proof of their income to Housing Benefit, they will have to take bank statements or wage slips.
Then, when the final award is made, it may all change again.
Hope that helps a bit.
The seminar was very enlightening!
Vicky
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