Based on the information given, it appears to be official error.
So long as the LA were given all the info (at the appropriate time), any subsequent error in the calc, by definition, must be official error. There doesn't appear to be any basis on which the clmt contributed to the "mistake" so the only issue is whether or not the clmt could reasonably have been expected to realise she was being overpaid.
In this case, unless the clmt has HB experience, I can't see how she could have been expected to realise. In my view, an appeal should be submitted on the following grounds:
1) all relevant info was given to the LA.
2) the mistake causing the o/p was by the LA and is therefore an official error.
3) the o/p is not recoverable as the clmt did not contribute to the mistake and the clmt could not reasonably have been expected to realise she was being overpaid.
As for "new initiative", this sounds like an LA trying to fudge their own responsibility by indulging in what amounts to a smokescreen of corporate graffiti. The LA has probably found one case which has been similarly calculated incorrectly and has now realised all such cases need checking.
Hope the above helps.
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