Compensation Recovery Unit
Where you receive state benefits as a result of an accident these should be regarded as an interest-free loan against future compensation. When you receive your compensation the money will be deducted from what is payable to you and paid back. The scheme is known as "CRU", which stands for the Compensation Recovery Unit who run the scheme.
Repayment is on a "like-for-like" basis. For example, where you receive any form of unemployment benefit because you cannot work due to your accident then this is repayable from any compensation you receive for loss of earnings. The third party has to pay the full amount, but if this is more than the compensation for that item the amount they can deduct from you is capped.
The scheme primarily arises in relation to unemployment benefits and benefits paid for mobility or care. For road traffic accidents they can only claim for the first 5 years of benefits paid.
The duty to deduct and repay the money falls on the party making the payment. If they fail to deduct it they will still have to pay the money, but are not entitled to ask you to give them any money back.
Where a claim for compensation is being brought the party being claimed against (or their insurer) is under a duty to report the fact to the CRU. They will then issue periodic certificates confirming the amount owed to them and to be deducted from the compensation payable. A copy will be sent to the person bringing the claim as well as the other side.
Should you disagree with any certificate you can apply for a review or, in more extreme examples, appeal the certificate. Where all of the benefits will be deducted from your compensation then there is no financial benefit to be gained by the other side in challenging the amount due and they are unlikely to do you any favours on this.
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