Compensation recovery scheme
Social security benefits, lump sum payments and compensation payments may be paid because of the same accident, injury or disease. If this happens, the person or organisation that pays the compensation (the compensator) has to pay back the benefits and or lump sum payment to the Department for Work and Pensions (DWP), via the Compensation Recovery Unit (CRU), under the terms of the Social Security (Recovery of Benefits) Act 1997 and the Social Security (Recovery of Benefits) (Lump Sum Payments) regulations 2008.
CRU issue a Certificate that shows the compensator how much they have to repay. CRU will also send a copy of the Certificate to the injured person or their representative.
The amount on the Certificate can be increased after the compensation claim is settled if the compensator gave CRU incorrect or insufficient information.
If CRU become aware that a recoverable lump sum payment was paid after a Certificate was issued, a revised Certificate to include the lump sum payment amount will be issued. The revised Certificate will supersede all previous Certificates.
The compensator may, in certain circumstances, reduce the compensation award to take account of the amount of benefits and or lump sum payments they have to repay to DWP.
This guidance tells you what to do if you get a Certificate which you think is wrong. It also tells you how to appeal against a Certificate.
Do you want more information about CRU's decision?
You can contact CRU if you want more information about their decision and they will provide you with an explanation.
If you still think the decision is wrong after receiving the explanation, you can make an appeal against the Certificate.
Who can appeal
An appeal may be made by:
- a compensator, and/or
- an injured person whose compensation payment was reduced by the compensator to take account of benefit/lump sum payment recovery.
How to appeal
An appeal must be made in writing, giving the reasons why you think the Certificate is wrong. You can use the appeal form available on the DWP website at www.dwp.gov.uk/docs/z2form.pdf. You should also provide all relevant evidence you have in support of your appeal.
If you are the injured person, you must attach any letters you have from the compensator telling you that your compensation payment had been reduced in accordance with either Section 8 of the Social Security (Recovery of Benefits) Act 1997 and/or Regulation 12 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008.
An appeal against a Certificate must be made on one or more of the following grounds:
- any amount, rate or period specified in the Certificate is wrong
- the Certificate shows benefits and/or lump sum payments which were not paid as a result of the accident, injury or disease
- benefits and/or lump sum payments listed which have not and are not likely to be paid to the injured person have been brought into account
- the compensation payment made was not as a consequence of the accident, injury or disease.
Please note: CRU will regard any requests for appeal that do not comply with the above grounds as being invalid and refer them to Her Majesty’s Courts and Tribunals Service (HMCTS). A tribunal judge will decide if the appeal can be accepted as being valid.
When to appeal and time limits
An appeal can only be made after
- final settlement of the compensation claim, and
- payment of recoverable benefits and/or lump sum payments has/have been made.
An appeal must be made within one month of the date on which the compensator makes the full payment of recoverable benefits and/or lump sum payments to the CRU.
Late appeals
Late appeals can be accepted when there are special circumstances for lateness. The absolute time limit for making a valid appeal is 13 months after the date the right to appeal arose.
A late appeal may be considered if there are special circumstances such as:
- a death
- serious illness
- absence abroad
- postal strike
The above list is not exhaustive.
Note: The reason for the late appeal must always be provided.
A tribunal judge may be asked to look at the reasons you have given for not appealing in time and decide if your appeal can be accepted. They will look at:
- whether there were special circumstances for the delay
- the length of time since the compensator paid the money to the CRU
- whether it is in the interests of natural justice that your appeal is accepted, and
- whether your appeal is reasonably likely to succeed.
After you have made an appeal
CRU will look at the evidence provided in order to determine if the decision can be changed. This will be carried out by someone other than the original Decision Maker.
If the decision can be changed
If it is found that the amount on the certificate is wrong, CRU will
- revoke the original Certificate, or
- send you a revised Certificate showing the correct details.
If you think the revised Certificate is wrong after CRU have looked at it again, you can appeal against the new decision. You must do this within one month from the date the new Certificate is issued.
If the decision cannot be changed
CRU will send you a letter telling you why they cannot change their decision.. Your appeal and an explanation of the legislation and facts used to make the decision will be sent to HMCTS.
CRU will send a copy of these papers to the compensator. If an injured person wants the papers sent to someone who is going to represent them, he or she must inform CRU.
CRU will send you a letter advising which tribunal will contact you regarding your appeal.
