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Explaining CRU

  • Published: Monday February 22, 2021
  • Category: Claims Support
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If we can successfully prove your claim, the Defendant will be asked to pay you compensation for any financial losses that you have suffered because of the negligence. Such losses are likely to include any loss of earnings, travel expenses, medical expenses, etc.

It may be that because of the negligence, you have been in receipt of state benefits such as Universal Credit or Disability Living Allowance, or that you have received NHS treatment for your injuries. If this is the case, the Government is entitled to recover from the Defendant any associated state benefits or the cost of any NHS treatment you have received because of the negligence. The principle is that the person that caused you harm, rather than the State, should be responsible for paying for these.

The Compensation Recovery Unit (CRU) is part of the Department of Work and Pensions (DWP) and was set up to ensure that any relevant state benefits and NHS treatment charges are repaid to the State, so that the Government is fairly compensated for benefits already paid to you and that you are not compensated twice for the same loss. They may only recover from the Defendant when your compensation includes money for: –

  • Loss of earnings, cost of care or loss of mobility; and
  • Corresponding benefits have been paid.

The following is a list of heads of compensation together with relevant benefits: –

Compensation for Loss of Earnings during the relevant period:

  • Disability Working Allowance
  • Disablement Pension payable under Section 103 of 1992 Act
  • Incapacity Benefit
  • Income Support
  • Invalidity Pension
  • Invalidity Allowance
  • Jobseeker’s Allowance
  • Reduced Earnings Allowance
  • Severe Disablement Allowance
  • Sickness Benefit
  • Unemployment Benefit
  • Unemployability Supplement

Compensation for Cost of Care during the relevant period:

  • Attendance Allowance
  • Care Component of Disability Living Allowance
  • Disablement Pension increase for Constant Attendance Allowance (Exceptionally Severe   Disablement Allowance)

Compensation for Loss of Mobility during the relevant period:

  • Mobility Allowance
  • Mobility Component of Disability Living Allowance

Every compensation claim must be reported to CRU and to do this, it will be necessary to provide some of your personal details such as your name, date of birth and National Insurance number. These details will help CRU in assessing their right to recover any benefits and calculating how much they expect to be repaid. CRU will then issue a “Certificate of Recoverable Benefits” which outlines the amount it expects to recover, and this amount will be taken from your compensation and paid straight to CRU by the Defendant.

As stated above, benefits can only be recovered on a ‘like for like’ basis; so, for example, benefits paid for loss of earnings can only be subtracted from the part of your compensation which represents lost earnings. If you do not recover compensation for lost earnings, then you do not have to pay those back, even if you do recover compensation for other things, such as your pain and injury.