It is true that autopilot is allowed to be used for the cruise portion of the IR. I have seen this, in writing, from the CAA.
The relevant document is somewhere at work, and I'll try to dig it out tomorrow so that I can quote it word-for-word. Apologies in advance if I can't find it, though, because we've just moved office, and a lot of stuff is still in boxes.
In the mean time, this post will bring the thread back to the top of the page!
FFF
--------------