Department for Work and Pensions

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Introduction and general information

This Z1 is for general guidance only and should not be regarded as a substitute for the legislation contained in the Social Security (Recovery of benefits) Act 1997.

Background

CRU GB operates primarily to deliver the following legislation: The Social Security (Recovery of Benefits) Act 1997, the Road Traffic (NHS Charges) Act 1999 and The Health and Social Care (Community Health and Standards) Act 2003.

The Social Security (Recovery of Benefits) Act 1997 introduced a recovery scheme with effect from 6 October 1997. The scheme placed the liability to repay social security benefits on the compensator and not the injured person. Part IV of the Social Security Administration Act 1992, Part IV of the Social Security Administration (Northern Ireland) 1992 and Sections 2 (1)(1A)(3) and (6) of the Law Reform (Personal Injuries) Act 1948 were repealed.

The Social Security Act 1998 introduced changes to the Social Security (Recovery of Benefits) Act 1997 which provide clearer grounds for review, two new grounds for appeal and for appeals to be heard by appeal tribunals instead of Medical Appeal Tribunals (MATs). These provisions are effective from 29 November 1999.

The Child Maintenance and Other Payments Act 2008 introduced changes to the Social Security (Recovery of Benefits) Act 1997, which provides for the recovery of lump sum payments. These changes are effective from 1 October 2008, and apply to all cases settled on or after that date.

On 5 April 1999 the Road Traffic (NHS Charges) Act 1999 came into force. This Act allows CRU to recover NHS hospital charges arising from road traffic accidents where a compensation payment is made on or after 5 April 1999.

On 2 April 2001 the Health and Personal Social Services Act (Northern Ireland) 2001 was introduced and allows for the recovery of health services charges by CRU in Northern Ireland.

On 29 January 2007 Part 3 of the Health and Social Care (Community Health and Standards) Act 2003 which allows for the recovery of the costs of providing treatment to an injured person in all cases where that person has made a successful personal injury claim against a third party was commenced.

The equivalent legislation in NI is The Recovery of Health Services NHS Charges (Northern Ireland) Order 2006.

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Who Administers the Compensation Recovery Scheme (CRS)?

The CRS is administered by the Compensation Recovery Unit (CRU), which is part of the Department for Work and Pensions (DWP).

The Compensation Recovery Unit (NI) is part of the Social Security Agency, which is an executive agency within the Department for Social Development (DSD).

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