Compensation recovery

How it works

• When someone claims compensation, the person or organisation who is likely to pay you compensation (the compensator) must tell the Compensation Recovery Unit, which is part of the Department for Work and Pensions (DWP).

Have you:

• Claimed or received compensation?
• Received a social security benefit or lump sum payment because of your accident, injury or disease?

If YES to both, the compensator has to pay back to the Department for Work and Pensions the amount of social security benefit or lump sum payment you have received as a result of your accident, injury or disease.

• If you have had an accident, the amount they have to pay equals the total amount of benefit you are paid from the day after the accident or injury up to the date of the final compensation payment or for up to 5 years – whichever is earlier.
• If you have claimed benefit because of a disease, the amount the compensator has to pay is worked out from the day you first claimed a benefit because of the disease up to the date of the final compensation payment or for up to 5 years – whichever is earlier.
• If you have claimed a lump sum payment because of a dust related disease, the amount they have to pay is the equivalent to the total amount of the lump sum or the gross amount of the compensation award, which ever is the least.
• The person or organisation who pays your compensation may in certain circumstances, reduce the amount they pay to account for any monies they are required to pay to the DWP. See Which benefits count and which lump sum payments count.